The rise and fall of iridium essay

The Rise and Fall of Iridium Essay Sample

Furthermore the pricing was to high to convince more than half a million people to buy it. The major reasons for failure of any project belonging to any domain are the same these includes bad planning, insufficient involvement of management or lack of management control, adoption of wrong marketing methods and adoption of flop technology in the sense that not considering the market trends.

So Iridium took eleven years for introducing it in the market. This is the time you The rise and fall of iridium essay have known that this project would fail.

But in case of Iridium technology no such analysis was performed to analyze the market trends with respect to customer. The time needed for the development of the new technology was too long.

On the other hand the price of the call was also too much which was round 7 — 8 dollars for international calls and 3 dollars for domestic.

They believed the high technological standard of the system would ultimately attract subscribers although their handsets for example were more expensive and bigger than phones of competitors see Q2. If a supervisory board with representatives from science and politics for example would have existed, changes like those in the target market could have been detected earlier.

There were 2 stages in the project. The price introduced in the market was also very surprising. Decisions made on technological issues surely were factors that influenced this devolvement. In the case of Iridium several parties are to blame for the failure.

Of course this target group was just a small part of the original target group predicted bythe Iridium CEO. Competing technologies With the rapid and unexpected developement of the cellular network, the Iridium technology became obsolete in areas covered by terrestrial mobile telephony.

What impact did the choices that were made have on subsequent evolution of the venture? Because of the low height of the satellites to miles above earthsurface they could only cover small cells, which made it nessasary to have 66 satellites surrounding the earth.

This lack in corporate governance resulted in a missing an objective view on the company and its strategy. The first stage started in with the development of the technology for the satellite system by Motorola and ended in the year The senior management had not taken the pain to explore the market and readjust the price of handset and call rate.

The fact that he was a very overambitious character and personally connected to the project in public, he stuck to the untenable business plan. Iridium LLC was the first in introducing satellite telephone industry in the market and it gained a great fame in its period.

The 66 satellites in 11 orbits [2] Development of cellular telephony in the U. Parallel to this he made the mistake to underestimate the development of the cellular telephone market and overestimated the market for sattelite phones He predicted So the factor like weight of handset, heavy costs of handset and call forced the customers that not to adopt the technology.

Manufacturers like Kyocera were unable to supply the few subscribers with enough handsets, which ended in a great loss of reputation. By the time Iridium was launched cellular phones were available a t low cost, and cellualar coverage was sufficent.

These links help in reducing the number of required gateways for communication.

The Rise and Fall of Iridium

When he came from Motorola, the company offered him stock options besides his fixed salary to create a financial incentive. Pressure on the other hand was probably sometimes needed, for example when partners were slow to set up the required infrastructure. The Iridium project started in and it was launched in These companies invested 3.

Further the handset, which were manufactured, were also very bulky in weight and was describe the size of actual brick. Although Iridium offered a GSM service for roaming into cellular networks, it was still more expensive than the regular cellular charge, so the target group shrank to people who were in the few regions not covered by cellular network and needed a communication device.

To finance the project Iridium started a partnership with 18 companies. The Iridium was well aware about the changes but still an outdated product was introduced in the market.

The call from a telephone or handset accesses the nearest satellite and travel across space through linked satellites and then ultimately reached down the destination point. If the idea is launched late it would not be applauded by the community if the community has already got awareness about such an idea.

With the stock options he could only have made money personally if the project succeeded so he seemed to be blind for any negative development concerning the result of the project. Satellites The Iridium system consisted of satellites traveling the earth in low orbits [1] and providing worldwide coverage [3].

The technology behind the Iridium system was breathtaking. Get Full Essay Get access to this section to get all help you need with your essay and educational issues. Because of the size of the board of directors key decisions were hard to make and processes to lead the company slowed down.

The first mistake of Iridium was that they had developed their own stand alone network in the space or simply a proprietary sort of network was devised for the Iridium technology.3. What is your evaluation of Iridium's organizational design? What changes could you have made to increase the probability of Iridium's success?

Q1. In the case of Iridium several parties are to blame for the failure. They are: Dr. Edward Staiano the former CEO of Iridium was responsible for Iridium's development in a significant way/5(4).

The Rise and Fall of Iridium PAGES 3. WORDS 1, View Full Essay. More essays like this: rise and fall of iridium, iridium's system design, the iridium phones.

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Because Iridium needed such a great number of satellites they developed assembly lines that allowed them to produce satellites at one tenth of the original production costs and made it possible to finish a new satellite every four and a half days.

The Rise and fall of Iridium In Iridium LLC and ICO Global Communications services were declared bankrupt due to serious financial issues regarding interests and financing commitments. Iridium LLC was the first in introducing satellite telephone industry in the market and it .

The rise and fall of iridium essay
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