Terracog Global Positioning Systems Case Summary

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TerraCog Global Positioning Systems Case Study Executive Summary TerraCog is a privately held company specializing in high-quality Global Positioning Systems and fishing sonar equipment. They were not always the first to market but was able to capture the GPS market as their product was of high quality and satisfactory addressed customer needs. For example during the late 1990’s the company introduced its first GPS products catering specifically to hunters, hikers and campers. However a competitor PostHaste introduced a GPS prototype called Birds1 which displayed Satellite Imagery. Terracog did not see this as a threat at first and decided to wait but realized quickly as time passed were wrong and had to change their decision. By the time…show more content…
Without knowing the production costs for the enhancements needed by Terracog for the new product would jeopardize the whole project “Ariel. They would not be able to compete with PostHastes’ Birds1 with sales and consumer preference for GPS handheld devices with satellite imagery. The lack of making a clear decision on cost and pricing could damage Terracog not only with reduced sales but a loss in their customer base and reputation in the company to produce a superior product with the quality their consumers have come to expect of Terracog. Lack of Communication would put the company put the company in jeopardy and at a huge disadvantage since the executives and management can not agree on production costs for “Ariel”, time to market and final sales price. Group Conflicts it is clear during meetings that each of the executives and management had conflicts that were not being properly addressed and resolved timely; particularly between sales, design and development and production departments. No one would come to a conclusion on “Ariel”. Without resolution the company faces certain loses, increased competition in sales by their competitor PostHaste, reduced customer base for their product, risk of losing the company’s’ reputation for producing a superior GPS system and a reduction in sales for the…show more content…
Terracog realizes their mistake in judgment during spring of 2007 when Terracog sales reps noticed an increase in sales and consumer demand for the “satellite Imagery” in Birds1 produced by PosteHaste over “vector base graphics” offered by Terracog. Lacked Leadership the executives have their own opinions and set agendas. Production and marketing of the new GPS product “Ariel” is at risk If key decisions are not made quickly to bring the product to market quickly. Lack of resolution to conflicts amongst the key executives and management team will mean that the superior quality their customers came to expect would be diminished and Terracog would not be able to compete with PostHaste, revenues would fall and the reputation of the company would be in jeopardy. A decision needs to be made if the product is ready for market or should be held back until areas such as pricing the upgrades to the existing technology can be made to meet the customer demands and expectations and the timing for bringing the product to

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