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Transcript of Iridium Analysis
- 1. ANALYSIS OF A FAILUREGuilherme PacherSilvia PodestDhanashri WalimbeErik Andrade
- 2. -Timeline-1994-1997 First envisioning :Motorola decline in sales growthof the ideaIridium LCC is formedas a spin off of MotorolaProject development spanMotorola Group sales growth declineOFFICIAL KICK OFFOF THE IRIDIUM SYSTEMStaiano appointedCEO of IridiumInvestments in building satellitesAugust 1999:final bankruptcy1985 1987 1991 1996 1998 1999
- 3. FunctionsPerformanceMeaningCostExtra - CostGlobal connectivityReduced call delayBetter portabilityManageabilityEconomicCost of saleManageabilityService provisionAccesoriesBrand damageEmotionalSense of securityReduced call delayBusiness developmentPsychologicalSocial statusPhysicalLimited access to thesatteliteToo many accesoriesHigh weight andvolumeTemporal11 years developmentEmerging digital phonesEconomicLost of the satellite platform High switching costsBenefitsEfforts
- 4. Iridium failure issuesInternal: flaws of the product (poor performances inside buildings, moving context, excessiveweight, non affordable price, poor data capability..)External: the huge time span of development prevented iridium to keep up with the changesoccurring in phone market (rise of digital cellulars...). At ed in the development of only onetechnology/solution.Misunderstanding of customers' real needs and expectations launch the concept was out-ofdate.Too much money invested in the development of only one technology/solution
- 5. Predictable failure? Why did they go ahead?They thought technology was just for technologys sake.They overestimated the value of technolgy and the returns without thinking on thecontext evolutionNo returning point, too much effort and money invested prevented them to back off.BUTThey could have anticipated by considering the evolution of the market and the riskanalysis.
- 6. Motorola gaining ?