Sony's I270

In my opinion, Sony’s I270 will be able to merge the video, data and the graphics segments.

The price of Sony I270 is lesser than the prices of other products in data ($8000-15000), and graphics ($20000-24000). If Sony’s I270 is priced at $8000, it is priced attractively. Sony can easily penetrate into data and graphics segments but would be able to capture relatively less significant share of video application segment. Graphics and data users would not mind spending less than the prevailing prices for a better product. Since customers using products in video segment spend in the range of $5000-7000, customers should be able to pay another $1000-3000 to own a better quality projector with a scan rate of75Khz. Moreover, since Sony products are normally discounted 15% by distributors and assuming that this trend continues, the cost to consumer for Sony’s I270 will be $6800 and video projector users should want to switch to Sony’s I270 given the immense improvement in quality that Sony offers for a modest increase in price. Also, there is evidence in the case that Sony’s competitors are not in good shape to launch a product as good as Sony I270 at a price as low as Sony’s.

As given in the case that Barco could have could have made one product to serve data and graphics users, but could not have commanded the highest price. Some data projector users need higher scanning rates and their needs are currently being met by Graphics projectors. With Sony’s I270, the needs of all of them would be met by single projector.75Khz scanning rate of Sony’s I270 is way above the requirement of users of video projectors but the price difference between Sony i270 and the prevailing video projectors is not much and video projector users could potentially be enticed to buy Sony I270 because the image quality, brightness and resolution of video would improve even more given higher scan rate.

Sony’s I270 meets the