Barco Projection Systems

1. What should Barco Projection Systems (BPS) do at this time, particularly with regards to its pricing and product development options?

BD 700 has 180 person months into its development and it will be ready in October. With advanced customer orders, and sticking with Barco’s vision of being a leader in new markets after analyzing and reading market demand, it should release BD700 as planned and capture 25% increase in sales forecasted.

While engineering is focused on delivering BD 700, BPS should look for a lens supplier to be compatible with 90KHz and 8” tube. If the lens supplier is identified, right after BD700, Barco should plan on releasing a prototype with digital enhancements to graphic projector and keep the market excited to wait for its product line. This will keep 1270 wave in check. However, if the digital upgrade is fairly easy, then Sony can come up with a digitally enhanced 1270 soon. Marketing campaigns for BG700 should be handled accordingly.

In answering this question, you should consider:

• What is Barco’s core competence?

Barco’s core competence is in video projection. It started in 1934 in radio broadcast business and moved to broadcast monitors and professional video equipment in 55 -75. Its vision was to produce top of the line video projection and fabricated TVs

Discussion: Core competence - electronics in projectors that others can’t immitate

• What are Barco’s strengths and weaknesses?

Strengths:

● Reliable product (Product design through robust R & D)

● Quality picture

● Owned 4 distributors