The Navigation Strategy
After concluding his discussions with Sane and returning to Korea, Taesik immediately briefed CEO Ryu Gwang-su on the agreements made with Starlink Map. "CEO Ryu, setting aside the domestic market, we need to produce 100,000 units each of the 7-inch and 5-inch navigation systems."
"Excuse me...? Even for the American market, is it really possible to move 100,000 units at once?"
"The initial order from QVC, the home shopping network, is for 20,000 units."
"Ah! Representative, there is a problem. Our current factory facilities cannot handle that volume. Furthermore, we are investing massive capital into satellite production; our financial resources simply won't support this."
"I will cover the funding with my own capital for now. I still have plenty of liquidity, so that isn't an issue. Why exactly is the factory space a problem?"
"We would need to set up new lines for mass production, and our current facility is too small."
"Are you assuming we need to handle the entire assembly process ourselves?"
"Isn't that the natural way to do it?"
"No. Let's handle only the final assembly and outsource the production in modules. If we receive the components as pre-assembled modules and only perform final assembly and quality control, our current space will be more than sufficient."
"In that case, we are at a disadvantage regarding technology leakage and unit costs."
"I am already taking separate measures to prevent technology leakage, so that is not a problem. And what is the issue with the costs?"
"While labor costs will increase, we could retain a higher profit margin if we handled the assembly ourselves."
CEO Ryu Gwang-su, anticipating continued growth in the navigation market, offered his opinion to maximize profits. Taesik, however, explained that the software was far more critical than the hardware.
"CEO Ryu. Navigation hardware doesn't require particularly advanced technology, whereas electronic maps require massive, continuous investment to secure a market lead. The hardware market will reach saturation soon. We need to focus on making the Starlink name synonymous with the market."
CEO Ryu nodded at Taesik's persuasion. "Understood. I will develop a strategy based on modular outsourcing. Also, the reflector development is complete, and I've received word that the thermal vacuum chamber will arrive next week."
"Once the thermal vacuum testing is finished, the satellite will be ready. We need to find a launch provider."
"I've inquired with both Russia and the United States, and the costs are higher than expected. Russia is asking for 50 billion won, and the U.S. is asking for 40 billion. While Russia launches from land, the U.S. plans to launch from the sea."
"The American company Sea Launch, which was founded specifically to reduce costs through sea-based launches, has offered a lower price."
"Yes. Although the technical risk is higher compared to Russia, the cost is lower."
"Let's proceed with the contract with the American firm. Also, we need to install a ground control station. Is there space for that at the current factory?"
"It would be impossible to install the data servers and antennas there."
"Then let's establish a satellite control center in nearby Pangyo or Seongnam. I plan to launch two more satellites immediately after next year's initial two."
"What scale should we aim for?"
"Assume we will be controlling at least 100 satellites. We are putting four in geostationary orbit, but moving forward, I intend to focus on small satellites."
"Understood. I will scout for a suitable site. Also, it is a shame we couldn't secure a contract at the AUSA exhibition. Not many places recognize the performance of our radios yet."
"Hahaha. Not at all. The defense sector always takes a long time to yield results. Keep in mind, however, that I have received hints from the FBI that they are likely to make a small purchase."
"Is that so? It was the only product that didn't generate sales, so I assumed you would be quite disappointed."
CEO Ryu left the office, offering words of comfort to Taesik regarding the lack of radio sales. Taesik then called in Security Chief Park Kyung-hoon and AI Division Lead Cha Youngjin.
"I haven't been able to pay much attention while I was on my business trip to the U.S. Now that I'm back at Starlink, how is it?"
"Are you asking about the company atmosphere, or the state of our security?"
"Both."
"The atmosphere is better than expected. You can see the anticipation for the future on the employees' faces. They take pride in the fact that the products they produce are generating sales and that they are building actual satellites."
"Is that so...?"
"However, the security state is a mess."
Cha Youngjin glanced at Park Kyung-hoon before continuing. "While the physical security of personnel and facilities is well-managed by Chief Park, there are quite a few things that need fixing regarding our IT security."
"What needs to be fixed?"
"First, we lack an information protection system. We need a dedicated server to house the company's critical data, and we need to assign access permissions for that server on an individual basis. Also, since we lack an internal network, we need to build a separate document management system."
"Anything else?"
"There are no CCTV cameras except at the main entrance. Visitors are freely walking into the offices of the design staff; we need an access control system for each office. And if we have the capacity, I would like to suggest installing the target identification and tracking system that student Lee Sang-hoon is developing."
"Hahaha. He really was a person worth recommending, Chief Park. Since you've identified the problems and proposed solutions, I assume you have no issue with implementing them yourself?"
"Excuse me...?"
"Get the necessary budget approved by CEO Ryu and establish the security measures."
"Me...?"
"Of course. I hired Cha Youngjin as our IT security lead. Naturally, it's the lead's job."
"It will cost a massive amount of money... do you trust me?"
"Isn't that obvious?"
Cha Youngjin, stunned by the full authority Taesik had just granted him, stammered, "When you hired me, I thought I was just here for a security audit and the occasional task that bordered on the illegal..."
"Not at all. I don't do illegal work. Now, you can handle the matters you just mentioned yourself. Oh! And order whatever supercomputer you need."
"In that case, may I link the target identification and tracking system I mentioned earlier with the company's CCTV?"
"By all means."
"If we add facial recognition technology to the system Lee Sang-hoon is building, we could get some very interesting results."
"I'll say it again: do whatever you want, Cha Youngjin. And Chief Park! If the staff you brought with you isn't enough, hire more. Don't worry about the burden of manpower."
"Understood. We were a bit short on security personnel anyway; I will proceed with that immediately."
"The two of you should assess what the company needs on your own and proceed by getting the budget approved by CEO Ryu."
Once they left, Taesik began reviewing the data for the navigation order volume and vendor selection for Starlink Map. Starlink Communication began preparing for navigation system production alongside its existing satellite terminal manufacturing. Over the next month, CEO Ryu began placing orders for modules, and as the initial shipments arrived, he personally inspected the assembly lines on-site and began quality control for the export volume.
Son Gyeong-chan, the lead manager for domestic navigation production, came to see Taesik after completing the testing for the domestic units, as the export units had begun assembly first. "Representative! The domestic navigation tests are finally finished. We are ready to enter production."
"Thank you for your hard work. How did the real-time traffic information feature turn out?"
"We've integrated the function into the navigation system, but due to the government's slow response, it looks like it will be two years before we can actually apply it to the product."
"Why? Are they saying they'll be late in providing DMB real-time traffic information?"
"Yes. The managing agency is KBS, and they say they will provide real-time traffic information in two years."
"It can't be helped. Let's just include the function for now and activate it once the government service begins. But the 3D electronic maps are sufficient, right?"
"Of course. The screen clarity is far superior to the 2D maps currently on the market."
Taesik immediately approved the strategy for the domestic navigation launch, and CEO Ryu and Manager Son began selling the units through online sales sites. Domestic sales didn't show any eye-catching volume as they competed with existing vendors, so Manager Son began making the rounds to home shopping companies to find new sales channels.
As soon as the first shipment of Starlink Map units arrived, they began broadcasting with the American home shopping network QVC. When they sold the units at a price 5% lower than their competitors, they called Korea to report that the first batch had sold out.
"Representative. The first batch of 10,000 units is completely sold out. When will the second batch arrive? QVC is pressuring us to keep selling."
"Hahaha. I'm glad to hear they're selling better than expected. The second batch of 20,000 units will be shipped today, so please wait a little longer."
"Phew! That's a relief. Also, there are a huge number of people leaving reviews on the electronic maps. They are mostly leaving reviews for restaurants, so we are updating the maps by displaying star ratings based on those reviews. People who are curious are visiting the Starlink Map homepage to search for information on those restaurants."
"It seems the consumer response is better than expected."
"Since we are providing free map update services in exchange for review counts, so much data is piling up that our company server capacity has exceeded 80%."
"If you ever run short on funds, let me know. I can provide additional investment at any time, so go ahead and expand the servers."
"We still have some breathing room. For now, we will continue the investment with the profits from the first batch. And please, hurry with the third batch."
As Taesik hung up the phone in a good mood, Manager Son Gyeong-chan entered the office. "Representative. We've finally secured a home shopping company."
"Is that so? It was worth all the running around you did, Manager Son. Which company is it?"
"Dae-ah Home Shopping. We've scheduled it for the golden time slot around 8:00 PM."
"Our differentiator from the competition is the 3D map... add the fact that we are exporting these in large quantities to the U.S."
"Ah! I will pass that on to the home shopping company."
While Manager Son was busy heating up navigation sales, CEO Ryu personally handled the satellite thermal vacuum tests and the ground control station installation project, traveling back and forth between the headquarters and Pangyo. Taesik, meanwhile, welcomed the American defense attaché who had come to visit Starlink.
"Welcome to Starlink. What brings you here from the U.S. Embassy?"
"I am Colonel Oliver, the U.S. Defense Attaché. Did you recently release a radio for special forces at the AUSA exhibition?"
"Yes. The feedback from participants was good, but unfortunately, it didn't lead to a contract. May I ask why you're asking?"
"I have brought an official proposal from the U.S. Department of Defense."
Taesik carefully examined the proposal handed to him by Colonel Oliver, stunned by the quantity requested by the U.S. Department of Defense.