Barco Case Analysis Analysis of the current product portfolio of Barco(Appendix A). High Market ShareLow Market Share High Market Growth rateNAGraphics Projectors (Barco had 4% units in 1988 and had predicted a growth of 41%) Key Competitor – Electrohome Low Market Growth rateData Projectors (Barco had 33% units in 1988 and had predicted a growth of 12%) Video Projectors (Barco had 63% units in 1988 and had predicted a growth of 1%) Key Competitor – Sony
Looking at the data we understand that to maintain Barco current position as a technological leader and to thwart Sony’s launch of Sony 1270 Barco must immediately stop the development of BD700 and focus entirely on developing BG800. A Multi-dimension scaling or a Conjoint analysis of the end users on the parameters of price, scan frequency, light output, picture quality and resolution with help us improve the analysis further. Sony 1270 combines the best of both data and graphic projectors – with a scanning frequency of 75kHtz and 8” Sony tube that gave brighter and higher image quality with improved resolution.
Also it was speculated to be priced at the range of data projectors. Barco cannot compete with Sony by lowering its prices and through high volumes and hence it must maintain its niche segment. Even though BG800 is a risky option (40% chance of completion) and requires high number of man-hours (more than 80) but with adequate planning and focus on R&D Barco BG800 launch can help regain Barco’s mark of product and technological innovation. Strengths & Opportunities How Barco maintained and kept its competitive advantage)Weakness & Threat (How Sony 1270 threatened Barco’s existence)How launch of BG800 would help while development of BD700 and BG700 would not Technology Leader for the high end user. Barco’s products were reputed for having highest quality final image and excellent reliability. The product of Barco was often not judged as user friendly. Frans had decided to evolve the products to further enhance image quality, flexibility o inputs and user-friendlinessTo maintain its mark in the market through its position on technological excellence, Barco must focus on BG800. It was designed with a frequency well above 1270’s – atleast 90kHtz. Also being a digital upgrade it would be user-friendly. Dealers tended to sell more of Barco projectors because they received a high price and a higher percentage of that price. Also Barco gave the dealers price protection. Low spread distribution network.
Sony had 500 dealers in the US market vs 100 dealers of Barco. However Sony’s products were positioned below Barco in performance and were average on prices. Barco cannot get into price wars or mass production with Sony and in the end Barco may even lose out on the Graphics machines positioning. BG800 product will help Barco focus on the niche market segment of high end users which can be reached out to with the dealers that Barco has and reap the profits