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1Presented to: Dr.Hamdy Alwany Presented by: Neveen Karima
The first satellite based mobile communications systems.
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- Iridium was a Sub-company of Motorola
- Conceived in 1987
- Wanted to shift from a component supplier to a System Builder.
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Build a mobile telephone system that would work anywhere on earth.
It would cover every - City - Town and - Square inch of the earth
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You can still
And Iridium would do this without building a single cell tower.
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- Iridium spent $5 billion, which was raised from a combination of debt, including Motorola to
build a satellite network.
- Sixty-six satellites into low-earth-orbits
were launched.
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Service launched in November 1998
In August 1999, Filled for bankruptcy
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42 million customers as called for in its business plan
Iridium had 30,000 subscribers at its peak.14
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1 -Time to market
It took Iridium 11 years to go from Concept to Launch.
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- Innovation in mobile phones moved at blinding speed.
- By the time Iridium launched, there were far fewer places on the planet where cell phone service was unavailable.
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In the eleven years since they had been at work, Iridium’s potential market had shrunk nearly
every day.
But Iridium’s business model assumptions were fixed like it was still 1990.
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2- Lack of Market Research
- Bulky design - won't fit into an average pocket
- “It Weighted like a brick”
- Very Expensive = $3000
- Price per minute = $7
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By the time Iridium launched:- Prices for local and international cell service
declined dramatically
- Companies such AT&T offered phone packages that included unlimited minutes and no roaming
fees.
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Cost of service didn’t meet the demand of the market.
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3 -Technological flaws
Iridium’s cell phone couldn’t make calls from cars, offices or other buildings.
Phones had to be used outdoors with a line-of-sight connection to the satellites.
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Open line of sight connection
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Realized the technological flaws and did nothing to improve it before launch.
Failed to consider the problem of inconvenient big size of handsets.
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4- Manufacture
Manufacturers were several month late in delivering equipment.
This lead to a lot of customers switched to available options from competitors.
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Thank You
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LEO
A 5 billion dollar investment in just going to last for FIVE YEARS!!!
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What went wrong?• A Business Plan Frozen in Time
• The Business plan was a static document
