BARCO PROJECTION

BARCO PROJECTION

SYSTEMS
Group 9, Section B
Virendra Agarwal-
19P234
Aarooshi Bansal-19P188
Shefali Verma- 19P221
Priyam Dixit- 19P209
Overview
● In 1989, Barco was one of the top 3 worldwide manufacturers in each of automated
production control system, graphic arts, CAD and industrial projections
● Barco’s Projection System Division (BPS), dealt in video projectors for industrial applications
● BPS dealt in video, data and graphics projector and the data segment gave the largest
revenue
● Barco was considered to be a technology and market leader in the projector market with the
most advanced product offerings
● Major competitors to Barco were Sony, Electrohome, and NEC
● Their dominance in the market has been challenged by the introduction of high quality 1270
projector by Sony
Barco taken by surprise by its
competitors Sony’s offering of a
superior graphic projector likely to be
The Issue launched at a lower price
Barco needs to counter this threat by

launching new and superior models
quickly and re-pricing existing models
Barco vs Sony (Strength and Weakness)
Barco’s Strengths Market Strength Distribution
Barco’s products had a In data and video projection, Barco’s dealers were 20%
better scan rate than Sony Sony held largest % of the box dealers and 80% system
marketplace. dealers
It had excellent image in the Sony’s dealers were 50%
market with highest quality box dealers and 50% system
final image projection In graphics, Barco was
dealers
number one in the market
It had in depth knowledge
about the market and
committed fully to R&D
efforts
Sony’s Strengths vs Barco’s Performance
Price and Product Dealers Strength Supplier Strength
On an average, Sony’s Sony’s dealer coverage in US Sony produced higher quality

products are priced 15% is 500 as compared to Barco’s tubes as compared to Barco’s
lower than Barco’s products of only 100 supplier Clinton
Sony’s discount in final sale: Estimated 80% to 90% of Sony is Barco’s sole supplier
15%, Barco’s discount: 10% professional audiovisual
dealers worldwide carried Sony has new competitive
Sony’s new model 1270, Sony equipments edge over Barcos
which can scan upto 75 Khz
is superior to Barco’s scan Sony: Reliable and low price
rate upto 72 Khz
OPTIONS ANALYSIS
CONTINUING DEVELOPMENT OF BD700
OPPORTUNITIES RISKS in suspending BD700

An improvement over current manual projector Suspending could demoralise engineers and customers
Forecasted revenue in 1990 would be $17.2 Mn The primary objective of beating Sony’s 1270 could not be
achieved
Orders prebooked by German distributors
Hence, BARCO should continue with the development of BD700.
Reasons:
• Revenue and Margin wise, Data segment contributed more than Graphics segment.
• The position of BARCO in Data segment is only second to that of Sony.
START DEVELOPMENT OF BG700
PROS CONS
• Leveraging development of BD700 to finish BG700 in • Inferior to Sony’s 1270
time for Infocomm 1990
• No additional input costs • Completely stop the production of BD700
• Can compete with 1270 in terms of price • Non-delivery of BD700 could adversely impact customer
morale
• Sufficient time to launch BG800 • Pricing of BG700 is not factored into revenues
INTRODUCTION OF BG800
• It is a successor to BG400
• The chances to complete by Infocomm is only 40%.
• A big risk is the indefinite postponement of other projects.
CONCLUSION
It would a high risk strategy if BG800 would have to launch by Infocomm deadline. It would also jeopardize the existing
products. So best decision would be to continue research and development on BG800 and follow the entire product
development lifecycle to deliver a quality product even though it is a bit late. In the meantime company can try to sustain in the
market using the other products BD700 and BG700
RECOMMENDATIONS
• Barco should continue with BD700 production (as it was 85% complete and pre-orders already booked) and grab some
market share since it is the first ‘digital’ model.
• Speed up the delivery and launch of BG700 by leveraging their big R&D teams, by paying out overtime and incentives at
this critical time
• Speed up the launch of BG 800. However, even they do not get it ready for Infocomm, they should target the next trade
fair instead
• The main contention was the pricing decision. Barco should not drop prices due the absence of any quantitative
evidence regarding low price of 1270. Barco should wait for a formal announcement by Sony.
• Barco should step up their marketing and promotional tactics to fiercely retain their customers.
• They should also tap into other growing markets and around the world to take advantage of their recent acquisitions.

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BARCO PROJECTION

The Issue launched at a lower price

Barco needs to counter this threat by

On an average, Sony’s Sony’s dealer coverage in US Sony produced higher quality

OPPORTUNITIES RISKS in suspending BD700

Hence, BARCO should continue with the development of BD700.

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