Case Study: Barco

Case Study: Barco

Ⅰ. Executive Summary

Barco's Projection System met a problem that compared to Sony, BPS was just a small, batch manufacturer so it would be tough for them to repeatedly lower price and meanwhile improve product’s quality. However, the Barco company has always got the good reputation of producing projectors with the most upgraded scan rate. So the key to solve this problem is to keep developing hi-tech product instead of competing Sony with price.

Ⅱ. Introduction

Barco’s Projection System was the second largest division of Barco N.V. which was a small company and competed successfully in the market on its R&D strength and product quality from 1950s to around 1980s.

However, with the rapid development and perfect operational system, Sony became the biggest competitor to BPS. Its 1270 “superdata” projector took the advantage of low price and relative high product quality to beat BPS’s BG400 which made BPS executives shocked and think about redesign their strategy.

Ⅲ. Analysis

A. Problem Identification

The projector 1270 has clear advantages such as scan, brightness, image quality compared with BG400, the product of barco. Meanwhile, the price, as the very important element in the market competition, of the new projector is reported to be quite low. Obviously, a large number of consumers who once belong to BPS will be attracted by the outstanding characteristics and low price of new projector from Sony.

Sony is ambitious because their aim is the whole data and graphic market. The fact that 15,000 people in the field were invited to the preview of 1270 indicates that Sony is acting. As the competitor in the projector market, 1270 will be the huge threat for barco.

B. Alternative Identification

Specific to the high-performing projector from Sony Corporation recently, BPS division should take steps and keep the market share.

1.Pricing Options

Sony’s new model 1270 targets the U.S. and European markets