Global Positioning Systems

March 21, 2008

To,

Allen Roth, Director, Design & Development

Ed Pryor, Vice President, Sales

Harold Whistler, Vice President, Design & Development

Tony Barren, Director, Production

From,

Emma Richardson, Executive Vice President

Subject: Launch of Product “Aerial”

Dear All,

This report provides an assessment of the strategies available for Project Aerial and the factors that would be critical for the outcome of the chosen strategy.

Regards,

Emma Richardson,

Executive Vice President

EXECUTIVE SUMMARY:

TerraCog’s redesigned product Aerial is being launched with a delay of 2 years, in response to the rising market share of rival Posthaste’s, BirdsI. But the redesigned product is priced at a premium of $100 to BirdsI which is priced at $375.At this price the company cannot expect enough sales due to the price sensitive nature of the product.

TerraCog can launch Aerial for $475 or launch Aerial without any margins for $425. The other strategy is to delay the launch by 4 to 6 months so that they can come up with a better product at a competitive price.

[100 words]

TABLE OF CONTENTS

SL NO PAGE NO

1 SITUATIONAL ANALYSIS 5

2 PROBLEM STATEMENT 6

3 CRITERIA FOR EVALUATION 6

4 OPTIONS 6

5 EVALUATION OF OPTIONS 6

6 RECOMMENDATION 7

7 ACTION PLAN 7

8 EXHIBITS 9

SITUATIONAL ANALYSIS

TerraCog has a brand reputation for its high quality Global Positioning Systems (GPS) and fishing sonar equipment. During October 2006, rival firm Posthaste introduced its handheld GPS device called “BirdsI”. Speculations from TerraCog’s Management that such a product would not do