Barco Projection Systems(A)

Section D – Group 12Puneet Sapra – 11P214

Sugandha Gupta – 11P230Vaibhav Sharma – 11P235Vikram Agarwal – 11P237

Barco Projector market

• Niche Market• Product-driven, not market-driven.• Innovation based• Shifted from batch manufacturers to top-of-

the-line products in niche market after global recession.

BARCO

Expanding International Presence

via Acquisitions and Joint Ventures (1989)

8-10% revenue for RnD

Vision to be market leader

Dependency on Single Supplier (Competitor)

Non-user friendly products

Under-estimated competitors

Projector market

BD600 & BD700 BG400

Sony 1270

Problem Area

Alternatives Available

• Launch BD700 and wait for launch of Sony’s 1270

• Stop the launch of BD700 and start working on improvement of BD600

• Stop the launch of BD700 and start working on development of BG800 (success chances – 40%)

Barco & Sony

Barco• Targets High-end product

niche market• Leads Graphic Projector

Market• Depends on Sony for Tubes

• Higher Scan rates and higher costs

• Number of Dealers – 400 (USA – 100)

Sony• Targets Low-end product

market• Leads Data Projector Market• Separate production unit for

manufacturing of Tubes.• Low scan rates (before 1270)

and more competitive costs• Number of Dealers – 1500

(USA – 500)

Barco’s Assumptions

• Sony has low focus on projectors market.• Sony will launch competitive product in late

1990.• Information on development of new tube(s)

will be shared by Sony in exchange of information on projector improvements done by Barco

Assumptions Gone Wrong

• Non-sharing of information by Sony on tube in development stages which was later used in BD600.

• Barco avoided the use of 8” tube (completely new design) in BD700.

Short-term plan

• To go ahead with the launch of BD700 (post 27 man-months)– To meet advance bookings– To maintain goodwill in the market– To maintain the morale of employees

• Provide incentives and discounts to distributors and dealers for the sales of BG400.

• Provide exchange-offers to customers to get BD700 in exchange of BD600 at a lower cost.

• Continue with the current pricing of BG400.• After the launch of BD700, start the

development process of BG800.• Introduce BG800 as future product

introducing its features in Infocomm.

Short-term plan (cntd.)

Long-term Plan

• Launch BG800 with aggressive marketing• Extend the dealers and distributors network.• Try to have multiple dealers of tubes.• To study and go for one or both of the

following:– Merger and acquisition of production plants of

tubes and lens– Start an internal plant for production of tubes and

lens

THANK YOU