Iridium Communications Inc. Iridium operates the Iridium satellite constellation , a system of 66 active satellites and 9 spares in space used for worldwide voice and data communication from hand-held satellite phones and other transceiver units. The founding company went into Chapter 11 bankruptcy nine months later, on August 13, Mismanagement is another major factor cited in the original program's failure.
This is a Thunderbird Case Study. This case describes the development and subsequent failure of Iridium. Iridium was a satellite-based communications system initially developed by Motorola and then spun off as a separate company. Using its constellation of 66 low earth-orbit satellites, the Iridium system was intended to provide reliable communications from virtually any point on the globe. On November 1, , Iridium began commercial telephone service and satellite-paging service began two weeks later. However, a variety of problems plagued the company, and by May , Iridium had only 10, subscribers.
It Is obvious that projections made by the company and endorsed by the most prestigious banks on Wall Street were comical leading to massive losses for banks, debt investors and equity investors. It Is also clear that the company made some mistakes In marketing such as not having sufficient phones available after a major advertising campaign. The questions I would like you to address in this case are what was underneath the crazy assumptions and financial projections made by these highly respected financial institutions and how could the banks and other institutions made the loans. Skim over the Case Write-ups Because the case was such a dramatic failure, a number of case studies have been written on the case.
Harvard Case Studies. In most courses studied at Harvard Business schools, students are provided with a case study. Major HBR cases concerns on a whole industry, a whole organization or some part of organization; profitable or non-profitable organizations. Case study method guide is provided to students which determine the aspects of problem needed to be considered while analyzing a case study. It is very important to have a thorough reading and understanding of guidelines provided.