Barco Projection Systems(A)

Section D Group 12 Puneet Sapra 11P214 Sugandha Gupta 11P230 Vaibhav Sharma 11P235 Vikram Agarwal 11P237

Barco Projector market

Niche Market Product-driven, not market-driven. Innovation based Shifted from batch manufacturers to top-ofthe-line products in niche market after global recession.

8-10% revenue for RnD

Expanding International Presence via Acquisitions and Joint Ventures (1989)

Vision to be market leader

BARCO
Dependency on Single Supplier (Competitor) Non-user friendly products Under-estimated competitors

Problem Area
Projector market

BD600 & BD700

BG400

Sony 1270

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.

Short-term plan (cntd.)

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.

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