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    Barco Projection Systems:: Case Analysis

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    Ankita Paliwal
    Barco has three options to compete with Sony's new projector: lower the price of the BD700, produce the BG700, or produce the BG800. The analysis recommends producing the BG700 at $15,000-$16,000 to match Sony's scan rate while reinforcing Barco's brand as innovative, and pursuing R&D on the BG800 to launch next year with an even higher scan rate to compete long-term.

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    Barco Projection Systems:: Case Analysis

    Uploaded by

    Ankita Paliwal
    57 views2 pages
    Barco has three options to compete with Sony's new projector: lower the price of the BD700, produce the BG700, or produce the BG800. The analysis recommends producing the BG700 at $15,000-$16,000 to match Sony's scan rate while reinforcing Barco's brand as innovative, and pursuing R&D on the BG800 to launch next year with an even higher scan rate to compete long-term.

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    Barco has three options to compete with Sony's new projector: lower the price of the BD700, produce the BG700, or produce the BG800. The analysis recommends producing the BG700 at $15,000-$16,000 to match Sony's scan rate while reinforcing Barco's brand as innovative, and pursuing R&D on the BG800 to launch next year with an even higher scan rate to compete long-term.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    57 views2 pages

    Barco Projection Systems:: Case Analysis

    Uploaded by

    Ankita Paliwal
    Barco has three options to compete with Sony's new projector: lower the price of the BD700, produce the BG700, or produce the BG800. The analysis recommends producing the BG700 at $15,000-$16,000 to match Sony's scan rate while reinforcing Barco's brand as innovative, and pursuing R&D on the BG800 to launch next year with an even higher scan rate to compete long-term.

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    © All Rights Reserved
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    of 2

    BARCO PROJECTION SYSTEMS:

    CASE ANALYSIS

    After a thorough analysis of the case, it was found that the following options are available with
    Barco:

    STRATEGY Rationale Pros and Cons


    Lower the price of BD700 To compete with Sony 1270 Pros
    priced at $15-20,000 with a scan Since this will be
    rate of 75Khz, BD700 which has a produced within a
    scan rate of 64Khz should be month, it will be able to
    competitively priced at: meet the Infocomm
    =(17,500/75)*64 deadline.
    =$15,000 Advance orders will be
    Expected revenue before fulfilled
    lowering the price = $4.3 Million Cons
    Expected revenue after lowering Inferior technology
    prices (keeping no. of units than Sony
    constant) = $4.03 Million Lose brand image and
    market share. Failing to
    cater to the Niche
    market.

    Produce BG700 Scan Rate 72-75 Khz Pros


    Current price/scan rate of Sony = Matches the Scan rate
    233 with Sony 1270
    Price/Scan rate of BG700 must Companys brand
    be reduced to $233 from current image of being
    $333 to compete with Sony. innovative is
    Therefore, it must be priced at maintained
    $17,500 Cons
    However, due to lower picture Product is still inferior
    quality, it might have to reduce to Sony1270 in terms of
    its price to $15000-$16000. picture quality
    Delay in launch of
    BD700 by 2-3 months
    leading to delay in
    fulfilment of advance
    orders.

    Produce BG800 As Barco has image in strong Pros


    R&D and innovation, it should Technically superior to
    also continue to develop BG800 Sony1270
    to capture market share again in Exceeding customer
    far future. expectations in terms
    Scan Rate 90Khz of innovation
    Current price/scan rate of Sony = Cons
    233 Only 40% chances of
    Therefore, it must be priced at making it to the
    $21,000 to compete with Sony. Infocomm deadline
    Delay in BD700
    Negative effect on
    workers due to
    overtime

    CONCLUSION:

    Barco Projection Systems should go ahead with the launch of BG700 at $15000-$16000 as it will be a
    positive reinforcement for the brand value of Barco as an innovative company. In the long run, in
    order to compete with Sony 1270, Barco should pursue the R&D for BG800 and launch it next year.

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