Case Detail

Case Summary

Wingcast: Creating and Capturing Value in Telematics

Case Number: 5-104-042, Year Published: 2004

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Authors: Mohanbir Sawhney; Jamie Andelman; Evan Auyang; Janice Dearlove; Jason Hermitage; Nancy Huang; Sandrine Gaupp-Scrim; Rahul Kamath

Key Concepts

Customer Need Analysis, Pricing, Service Offering Design, Market Entry Strategy for Second-Movers, Competitive Strategy, Network Externalities, Telematics Industry, Wireless Communications Industry

Abstract

Mark Lieberman, VP of business development at Wingcast, a Ford Motor Company and Qualcomm joint venture, had been asked by the Board of Directors to design and configure the appropriate telematics service offering to compete with the industry's first mover, General Motors’ OnStar. Lieberman had to structure the offering and estimate demand in this emerging technology market where customer needs were not well-understood and their willingness to pay uncertain. How should Wingcast differentiate itself from the market leader? Should it focus on market penetration or profit maximization? What position should it occupy in the telematics value chain? What bundle of services should it offer to customers? What pricing approach should it employ for end-user services? The viability of Wingcast depended on these decisions.

Number of Pages: 27

Extended Case Information

Teaching Areas: Marketing, Technology

Teaching Note Available: Yes

Geographic: USA, California

Industry: Telecommunications

Organization Name: Wingcast

Organization Department: Executive Management

Organization Size: Medium

Decision Maker Position: VP Strategic Development

Decision Maker Gender: Male

Year of Case: 2001