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-Timeline-
1994-1997 :Motorola decline in sales growthFirst envisioning of the idea
Iridium LCC is formed as a spin off of Motorola
Project development span
Motorola Group sales growth decline
Staiano appointed CEO of Iridium
OFFICIAL KICK OFFOF THE IRIDIUM SYSTEM
August 1999:final bankruptcy
Investments in building satellites
1985 1987 1991 19981996 1999
FunctionsPerformance
Meaning
Cost
Extra - Cost
Global connectivityReduced call delay
Better portabilityManageability
Economic
Business development
Physical
Limited access to thesattelite
Too many accesories
High weight and volume
Temporal
11 years development
Emerging digital phones
Economic
Lost of the satellite platform High switching costs
Cost of sale
Service provisionAccesoriesBrand damage
Manageability
EmotionalSense of securityReduced call delay
PsychologicalSocial status
Benefits
Efforts
Internal: flaws of the product (poor performances inside buildings, moving context, excessive weight, non affordable price, poor data capability..)
External: the huge time span of development prevented iridium to keep up with the changes occurring in phone market (rise of digital cellulars...). At ed in the development of only one technology/solution.
Misunderstanding of customers' real needs and expectations launch the concept was out-of date.
Too much money invested in the development of only one technology/solution
Iridium failure issues
Predictable failure? Why did they go ahead?
They thought technology was just for technology’s sake.
They overestimated the value of technolgy and the returns without thinking on the context evolution
No returning point, too much effort and money invested prevented them to back off.
They could have anticipated by considering the evolution of the market and the risk analysis.
BUT