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Barco Projection Systems Case Study

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116 views1 page

Barco Projection Systems Case Study

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Hammad Aqdas
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Barco Projection
Systems Case Study
$ Oct. 16, 2012 % 31,289 views

This slideshow was created to showcase the


marketing research involved in the strategic
decision-making process. This presentation
represents a decision for the marketing team at
Barco Projection Systems, on how to combat
the incoming Sony 1270 projector model. This
Read more

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! Barco Projection Systems Case Study


1. Barco Projection Systems A Case Study by Brendan
Cronin Belinda DeSousa Megan Cruz Patrick McHugo
Mike Wallace 1
2. Current Position • Barco N.V. is one of the top three
worldwide manufactures with a focus on expensive high
quality products in a niche market. • It focuses on graphic
projectors, which has the maximum growth and revenue in
the projector market. • Barco’s market share are as
followed: – 4% in video projectors – 23% in data projectors
– 55% in graphic projectors • Major competitors to Barco
are Sony, Electrohome, and NEC • The product that would
compete with the Sony 1270 (BG 800) had a 40% chance
of being completed by the Infocomm trade show 2
3. Barco’sstrengths and weaknesses as they relate to
Sony. Barco’s Strengths: •Barco’s products had a better
scan rate than Sony •Barco’s dealers were 20% box
dealers and 80% system dealers. •Sony’s dealers were
50% box dealers and 50% system dealers.
4. Barco’sstrengths and weaknesses as they relate to
Sony. Sony’s and Barco’s Market Strengths: •In data
projection, Sony held largest % of the market place. •In
graphics, Barco was number one in the market. •In terms
of performance, Barco ranked higher than Sony.
5. Barco’sstrengths and weaknesses as they relate to
Sony. Sony’s Price and Dealer Strengths: •On average,
Sony’s products are priced 15% lower than Barco’s
products. •Sony’s discount for the final sale: 15% •Barco’s
discount for the final sale: 10% •Sony’s dealer coverage in
U.S: 500 •Barco’s dealer coverage in U.S: 100
6. Barco’sstrengths and weaknesses as they relate to
Sony. Sony’sDealer Strengths: •An estimated 80% to 90%
of professional audiovisual dealers worldwide carried Sony
video equipment. •This help build Sony’s reputation for
reliability and low prices among dealers.
7. Barco’sstrengths and weaknesses as they relate to
Sony. Sony’sSupplier Strengths: •Sony produced higher
quality tubes over Barco’s supplier Clinton. •Sony is now
Barco’s sole supplier. •Sony has a new competitive edge
over Barco
8. Barco’sstrengths and weaknesses as they relate to
Sony. Sony’sStrengths: •Sony released new model, the
1270, which has the power to scan to 75 kHz and has an
8” Sony tube that Barco declined to use due to shape.
•Currently, Barco’s highest scan rate offered is 72 kHz.
(Model: BG400)
9. Why Did Sony Introduce the 1270? Because it could.
10. Sony &Barco Sony Barco • Position- Affordable, •
Position- High-Quality Reliable • 20% Box, 80% Systems •
50% Box, 50% Systems Dealers Dealers • Relied On Main
Competitor • Develop Component Parts for Necessary
Component • Produced only Data and Parts Video
Projectors • Produced All Projectors, Controlled 55% of
Market for Graphics Projectors
11. Barco Should’ve Seen it Coming • 1987- Sony
introduced a video projector with components not made
available to Barco • Barco was Naïve: Believed Sony
would respect the company’s “vision” of the marketplace
12. Timing • Barco purchased components 5 months in
advance- Halting the production process • Sony had a
working relationship with Barco, probably would have
known they were working on new projectors • Introduced
with 4 Months until Infocomm show in Jan. 1990
13. What Would Sony Gain? • Priced at $15,000, the
1270 would cause Barco to lose 60% market share to
Sony ($307.5 million) • At this price, the 1270 would also
steal customers from the BD600 ($12,000) • Sony would
ultimately gain the market position of high-quality
14. How Should Barco Respond to Sony? They could:
•Lower the price of BPS to be less than the 1270
•Develop a competitive projector, the BG800 •Continue on
schedule and complete the BD700
15. The Best Option • The best option would be for BPS
to lower their prices less than Sony. That is because they
don’t have a product that can directly compete with the
1270, so to have their products priced thousands more
than the 1270 would cause them to lose the most
business.

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