Harvard Case - ISRO: Explore Space or Exploit CubeSats?
"ISRO: Explore Space or Exploit CubeSats?" Harvard business case study is written by Prithwiraj Choudhury, Tarun Khanna, Karim R. Lakhani, Rachna Tahilyani. It deals with the challenges in the field of Operations Management. The case study is 18 page(s) long and it was first published on : Apr 10, 2017
At Fern Fort University, we recommend that ISRO adopt a dual-track strategy focusing on both exploring space through ambitious missions and exploiting CubeSats for commercial and scientific applications. This strategy leverages ISRO's existing strengths in space exploration while capitalizing on the burgeoning CubeSat market. We propose a phased approach, starting with establishing a dedicated CubeSat division within ISRO, followed by developing a comprehensive ecosystem for CubeSat development, testing, and deployment.
2. Background
This case study focuses on the Indian Space Research Organisation (ISRO), a renowned space agency with a history of successful missions. ISRO is facing a critical decision: whether to continue focusing on ambitious space exploration missions or shift its focus to the rapidly growing market for CubeSats, miniature satellites with numerous applications.
The key protagonists are:
- Dr. K. Sivan: ISRO Chairman, facing the challenge of balancing ambitious space exploration with the potential of CubeSats.
- ISRO team: Engineers, scientists, and managers who are passionate about space exploration but also recognize the potential of CubeSats.
- Indian government: The primary funder of ISRO, seeking a return on investment and national pride through space exploration.
- Private sector: Emerging companies and startups interested in utilizing CubeSats for various applications, potentially creating a new market for ISRO.
3. Analysis of the Case Study
The case study presents a classic strategic dilemma: exploiting existing strengths in a mature market versus exploring new opportunities in a rapidly growing market. We can analyze this using the Ansoff Matrix:
| Strategy | Existing Products | New Products |
|---|---|---|
| Market Penetration | Focus on existing space exploration missions | - |
| Market Development | Expand into new markets for space exploration services | - |
| Product Development | Develop new technologies for space exploration | Develop CubeSat technologies |
| Diversification | - | Develop and launch CubeSats for various commercial and scientific applications |
ISRO's current strategy focuses on market penetration through ambitious space exploration missions, which has yielded significant success. However, this strategy faces challenges, including:
- High costs: Large-scale missions require substantial investments, potentially straining ISRO's resources.
- Limited market: The market for space exploration services is relatively small and dominated by a few players.
- Competition: International space agencies and private companies are increasingly active in space exploration.
The diversification strategy, focusing on CubeSats, presents a significant opportunity:
- Lower cost: CubeSats are significantly cheaper to develop and launch compared to traditional satellites.
- Rapid growth: The CubeSat market is expanding rapidly, driven by diverse applications in Earth observation, communication, scientific research, and more.
- New revenue streams: ISRO can tap into the growing demand for CubeSat services, creating new revenue streams.
4. Recommendations
ISRO should adopt a dual-track strategy focusing on both space exploration and CubeSat development. This strategy is based on the following phases:
Phase 1: Establish a dedicated CubeSat division within ISRO.
- Objective: To create a dedicated team focused on developing, testing, and launching CubeSats for commercial and scientific applications.
- Activities:
- Recruit specialists with expertise in CubeSat technology, manufacturing, and operations.
- Develop a dedicated infrastructure for CubeSat development, including testing facilities and launch platforms.
- Establish partnerships with universities, research institutions, and private companies to foster innovation and collaboration.
Phase 2: Develop a comprehensive CubeSat ecosystem.
- Objective: To create a robust ecosystem for CubeSat development, deployment, and operation.
- Activities:
- Develop standardized CubeSat platforms and components to streamline production and reduce costs.
- Establish a CubeSat launch service, offering cost-effective and reliable launch options.
- Create a data management and analytics platform for CubeSat data, providing valuable insights for various applications.
- Develop a robust marketing and outreach strategy to attract potential customers and partners.
Phase 3: Expand CubeSat operations and explore new markets.
- Objective: To leverage the CubeSat ecosystem to expand into new markets and applications.
- Activities:
- Explore partnerships with international space agencies and private companies to expand CubeSat operations globally.
- Develop new CubeSat applications for emerging markets, such as precision agriculture, disaster management, and environmental monitoring.
- Invest in research and development to enhance CubeSat capabilities, including miniaturization, advanced sensors, and artificial intelligence.
5. Basis of Recommendations
This dual-track strategy aligns with ISRO's core competencies and mission:
- Core competencies: ISRO possesses the technical expertise, infrastructure, and experience necessary for both space exploration and CubeSat development.
- Mission: ISRO's mission is to advance space technology for national development and global cooperation. This strategy fulfills this mission by pursuing both ambitious space exploration and commercially viable CubeSat applications.
The strategy also considers:
- External customers: This strategy caters to the growing demand for CubeSat services from various sectors, including government, academia, and private industry.
- Internal clients: This strategy provides opportunities for ISRO scientists and engineers to work on cutting-edge technologies and contribute to a rapidly evolving field.
- Competitors: By establishing a robust CubeSat ecosystem, ISRO can position itself as a leading player in the global CubeSat market, competing effectively with other space agencies and private companies.
The attractiveness of this strategy is supported by:
- Lower costs: CubeSats offer a cost-effective alternative to traditional satellites, potentially attracting a wider customer base.
- Rapid growth: The CubeSat market is expected to grow significantly in the coming years, providing a large potential market for ISRO.
- New revenue streams: CubeSat development and launch services can generate significant revenue for ISRO, diversifying its income sources.
6. Conclusion
ISRO should adopt a dual-track strategy focusing on both space exploration and CubeSat development. This strategy leverages ISRO's existing strengths while capitalizing on the burgeoning CubeSat market. By establishing a dedicated CubeSat division and developing a comprehensive ecosystem, ISRO can position itself as a leading player in the global CubeSat market, generating new revenue streams and contributing to national development.
7. Discussion
Alternative options include:
- Focusing solely on space exploration: This option risks missing out on the growing CubeSat market and potentially straining ISRO's resources.
- Focusing solely on CubeSats: This option may neglect ISRO's legacy in space exploration and potentially limit its impact on the global space community.
Key risks and assumptions:
- Competition: The CubeSat market is becoming increasingly competitive, requiring ISRO to innovate and adapt quickly.
- Technology advancements: Rapid advancements in CubeSat technology may require ISRO to continuously invest in research and development.
- Market demand: The success of this strategy depends on the sustained growth of the CubeSat market.
8. Next Steps
- Establish a dedicated CubeSat division within ISRO within 1 year.
- Develop a comprehensive CubeSat ecosystem within 2 years.
- Expand CubeSat operations and explore new markets within 5 years.
This phased approach allows ISRO to gradually build its CubeSat capabilities while maintaining its focus on space exploration. By strategically leveraging its resources and expertise, ISRO can achieve both its ambitious space exploration goals and capitalize on the exciting opportunities presented by the CubeSat revolution.
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Case Description
The Indian Space Research Organization (ISRO) achieved global acclaim by launching successful missions to the moon and Mars at a fraction of the cost of prior Western missions. It is now faced with an important strategic dilemma-whether to continue exploring deep space in collaboration with NASA and other leading agencies, whether to leverage its infrastructure for societal uses, or whether to exploit a commercial opportunity related to launching small, handheld cubesats. The case explores the basis for ISRO's cost advantage vis-à-vis western entities, as well as its resource constraints and human capital considerations as it makes this important strategic choice for the future.
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