Written Analysis and Communication II

Case study – TerraCog Global Positioning Systems: Conflict and

Communication on Project Aerial

The facts identified related to situations as per following:

Project Aerial Decision

During the Summer 2006 Outdoor Retail Show a competitor to

TerraCog, Posthaste, displayed and announced the intention of launch

of its new GPS prototype called “BirdI” having technology which had

visual appeal that was far superior to the simple victor based graphics

of TerraCog GPS.

Posthaste launched the product BirdI in October 2006, with an outdoor

launch in two key retail outlets of TerraCog.

The organization acknowledged the increasing customer demand for

such a product and initiated the development of a product of their own

with the “Gadget Appeal” and set target of holidays of 2008 for launch

Aerial Product Development

In order to speed up the process it was decided to design the new

product with in the existing GPS platform

All features of the existing product offering was aimed to be

incorporated at an incremental cost of $ 50 with a slight trade off of

speed

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Price Point Conflict

The costing proposed as per the production and design team is $ 475

which is $ 100 more than the current full-featured TerraCog GPS and $

75 more than the retail price of Posthaste , therefore unacceptably

high for the team

The fact stated for cost increase is that the satellite imagery requires

five times more memory than standard graphics, doing away the same

would divulge the value proposition.

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