Iridium Case

IRIDIUM CASE

• Strategic Vision

Iridium strategic vision was to become a leader in global communication who would be able to navigate and supersede the limitations of the major cellular networks. Some major limitations include physical obstacles or geographic barriers through new innovate ways. Another way was to create and excuse extensive research and development projects. Iridium had the mindset to become the ultimate leader in high-technology communication systems that companies and consumers would look to.

• Why is a business plan so important? Does it dictate the business values and issues? If so what were Iridium’s business values and issues?

A business plan is a formal statement of a set of business goals, the reasons they are believed attainable, and the plan for reaching those goals. It may also contain background information about the organization or team attempting to reach those goals. The plan of Iridium was to build a mobile telephone system that would work anywhere on earth. The goal of the business plan was to buy a fleet of 15 rockets from Russia, the U.S. and China. The challenge with that is the cost factor. If you are going to buy some of your major market rockets there must be enough liquid capital to assist with the effort. At the end of the day the business plan wanted the company to make a profit but if you from the very beginning trying to spend over a million dollars on a major investment the return should be high.

• Why did Iridium Fail? Who is responsible?

Cellular market build-up greatly reduced people’s need for Iridium’s service. Management did not properly account for the company’s revenue model. Iridium phones were too expensive and large which forced the company to charge a higher price and go to areas were cellular service was unavailable. The challenge then comes with cost. If you are in an area where coverage is unavailable how much would need to be spent in order to make the necessary area ready for use? Many of...