Executive SummaryTerraCog, which was facing declining sales of its GPS products, had decided to meet consumer demands for a satellite image display product by launching Aerial. However, the decision to launch Aerial hit a price hurdle. On the one hand, the production and design and development departments expressed their inability to reduce the price below $475. On the other hand, the Sales department showed resistance for a price above $425. Evaluating the impact of the decision on our business, our ability to meet customer needs and our customer relationships, we recommend that TerraCog Aerial launches priced at $475[109 words]Index Situation Analysis 3The Problem 4The Options 4Evaluation Criteria 4Evaluation of Options 5The Recommendation 7Action Plan 7Situation AnalysisTerraCog is a relatively successful company specializing in GPS and sonar equipment for fishing. TerraCog is known for its ability to convert user feedback into products that outperform the competition in meeting customer needs. The GPS products offered by TerraCog are appreciated for their durability and value-added features. In 2006, Posthaste, a competitor, launched a GPS product called BirdsI that used satellite imagery as a display. BirdsI has visual appeal to customers and showed impressive sales rates last year. As a result, customers requested a product with satellite imagery display from TerraCog. In response to this, TerraCog decided to launch a product called Aerial. Both the President and Board of Directors of TerraCog have shown a keen interest in ensuring a successful launch of Aerial. To keep costs lower and speed up the...... middle of paper ......the past experience, the customer expects an easy-to-use product from TerraCog. The absence of such a product would negatively impact customer relationshipsc) Business Impact – If Aerial is not launched, the company's market share is expected to decline by 10% based on past trends, despite the fact that the market for GPS products is growing. Therefore, the option of not launching Aerial would have a negative impact on TerraCog's business. RecommendationTerraCog is expected to launch Aerial priced at $475 to meet customer demands and expectations and augment its business action plan. A series of follow-up actions are proposed to follow up on the recommendation:-1. The production team must adhere to the previously defined timelines2. The sales team needs to reconsider Aerial's positioning in the market according to the new cost estimates