OPIM 5894 Advanced Project supervision
• Rich Buskey
• Jonathan Weiss
• Daniel Mahzonni
• Prashant Mishra
• Vijay Gadigeppa
• Jonathan Koenig
What caused iridium to fail: was it a bad strategy, negative execution or bad luck?
– Bad Technique
• Advertising Sales mistakes
• Too expensive phones: bucks 3, 1000
• Rates: $3. 00 - $7. 50 per call
• Mixed forecasts regarding the portable satellite industry
– Leslie Taylor Associates predicted a person base of 7 mill. subscribers and earnings of $8 – twenty bill. simply by 2003
– Forrester Exploration predicted that the global dish market will be as much as $36 bill. by 2005.
• Very ambitious project
– Iridium had signed 256 operating contracts with local providers in over 75 countries by July 99. The company nonetheless had to negotiate agreements with another 140 countries and territories.
What caused iridium to fail: was that a bad technique, bad delivery or misfortune?
– Negative Strategy (Contd. )
• Project Funding
– Iridium LLC was obviously a spin-off by Motorola
– Assumption: Once project finish, would look like a utility company with substantial margins and steady money flows
– Not organized adequately for the entire project; no contingency program – Want based loans vs requirements based auto financing
What caused iridium to fail: was it an undesirable strategy, awful execution or bad luck?
– Bad Execution
• It failed to answer over 1 mill. product sales inquires due to internal misunderstandings and knowledgeable logistical concerns trying to distribute phones
• In March 1999, it was unable to fill up 15, 500 orders pertaining to satellite phones because the maker could not ramp up production fast enough. • Iridium declared that it had only 7, one eighty eight satellite clients, 10, 294 total support subscribers and cumulative funds revenues of $195, 1000 as of Drive 31 [Expected: 28, 000 members, 52, 1000 total assistance subscribers and $4 generator. of cash revenues]
• nonaesthetic hand-sets