Terracog Hbs Case

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TerraCog GPS – Navigating Group Conflict to Arrive at Your Destination Background TerraCog Global Positioning Systems (GPS) is a private manufacturer of portable global positioning systems marketed towards outdoorsmen. Since the company began selling GPS products in the late 1990s, its products were perceived has high-end and therefore highly valued by consumers. Although TerraCog consistently lacked product innovation compared to its competitors, their ability to address customer needs allowed for lag time as they always surpass competitors to gain and maintain market share when their new products eventually roll out. However, in the summer of 2006 a competitor, Posthaste, unveiled a GPS utilizing satellite imagery called “BirdsI”, instead of the vector-based graphics the rest of the industry had been using. The management team at TerraCog dismissed this product as viable competition to their market leading products, thinking “BirdsI” lacked accuracy and reception quality. However, the industry began buzzing about the revolutionary imagery prompting TerraCog to question updating their products as well. After deliberating it was decided not to upgrade thinking their customers valued the durability in TerraCog’s line versus “dressed-up” graphics. When the product released to market in 2006 holiday season Posthaste reported impressive sales which TerraCog attributed to the seasonality of the holiday shopping season. Finally in the spring of 2007 after the demand for “Birds1” continued to increase, TerraCog decided to develop and release to market a GPS with satellite imagery to compete with Posthaste, named “Project Aerial.” Emma Richardson, EVP in charge of production, has been tasked with managing the production and release of Aerial to the marketplace. After months of go-to-market planning, involving the Design, Development, Production and Sales teams

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