Difficulty of financial sources for Iridium

下面51due教员组为大家整理一篇优秀的代写范文，供大家参考学习。这篇文章讲述的是铱星是一家提供卫星移动通信系统服务的公司。当人们前往没有有线信号的地方时，他们可以使用卫星电话，因为该公司的目标是用卫星服务覆盖地球上所有偏远地区。该公司刚成立时，希望与蓝筹股电信公司合作，获得资金。然而，一些人认为它们是卫星通信行业的潜在垄断，将对当地的邮政、电话和电报系统构成威胁。因此，虽然卫星电话的想法是鼓舞人心和有用的，该公司仍然有困难的财政来源。

Iridium is a firm that provides satellite-based mobile communications system services. When people travel to places where there is no cable signal, they can use the satellite-based phones because the firm aimed to cover all of the remote areas on Earth with satellite service. When the firm first started, it wanted to partner up with blue-chip telecommunications companies and receive funds. However, some regarded them as a potential monopoly in the satellite communication industry and would post a threat to their local postal, telephone and telegraph systems. So although the idea of satellite phone is inspiring and useful, the firm is still having trouble with financial sources. The next step they did was to use multiple gateways and look for other international investors. Many developing countries supported them and Motorola partnered with Iridium. After this, the firm received much attention from analysts and most of them rated the firm a strong buy. Other related firms started to make adjustments to their products to cater to Iridium. For example, phones were redesigned such that they can receive cable and satellite service and switch automatically.

Many things started to go wrong during the beta customer test phase. First, about ten years have passed since the Iridium team first started to formulate their idea. During those years, technology has advanced so much that there are now other methods to communicate other than satellite phones when there are no cable services. Second, the beta customers reported many areas where Iridium still needed to improve. As a result, the subscribers were much less than forecasted and Iridium had to switch to new marketing strategies. They now turned to businesses and corporations and hope to sign the entire firm as a subscriber. However, the number of subscribers were still significantly less than the number they would need to profit. The market reacted with different attitudes and some analysts switched the rating from buy to hold. More problems started to rise and some of Iridium’s suppliers were having trouble delivering their equipment to Iridium. Then the pricing for Iridium dropped significantly. Finally, within a year from its initial launch, Iridium had to seek financial restructuring due to the amount of debt. However, they were never successful in financial restructuring and in another year, the firm shut down completely. The direct cause of the shut down was that there were not enough subscribers to generate enough revenue to cover up the costs. However, I believe that the most fundamental reason for its failure is because of technological innovations, ideas generated in the 1980s can never stay as popular even till 2000.

To me, Iridium can do nothing to succeed unless it gives up the initial idea of satellite communication system and switch to more updated technology. The core determinant of whether a business can be successful or not is not its financing or marketing strategies, rather, the content and service it provides. Now that the service is outdated and there is not so much demand for it as previously forecasted, they should not stick to the old idea and should seek ways to innovate. Take Kodak for example, when electronic pictures are available, no matter how Kodak struggles with marketing strategies, films will be replaced by electronic formats ultimately. This is the technological innovation progress of human beings and to run a business against it will never succeed. So if I were to give them a suggestion, it will be to turn their service into world-wide-web and how to provide data and service for those travelling in remote areas such that they can still use Whatsapp to communicate. The technological innovation trend determines whether a firm can succeed in the long term, and although financials and marketing techniques are important, they only serve as auxiliary roles.

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