...Company: Barco Projection System Industry: Projector Systems In the late 1970’s, BPS moved from producing radio broadcast receivers to the market of projectors based on a clear vision which market they could serve better and focused on research & development to come up with top quality product and launched several activities aimed at global expansion. As a result, BPS was the market leader in high end graphic projectors because of technologically superior quality. But in 1989, Sony introduced 1270 Superdata Projector at the Siggraph trade show in Boston and won the first place in Highest Performing Projector category from BPS’ BG400, much to the surprise of Barco. 1270 was also price about 20-40% lower than Barco’s projectors. This put BPS under pressure to sustain the attack from a giant company such as Sony and come up with measures to counter attack. 1. How serious a threat is the Sony 1270? Though Sony was one of the top competitors to Barco, Barco did not expect Sony to come up with a product such as 1270 and it was caught off guard. Barco’s assumption that Sony concentrated mainly on basic projects and didn’t want to invest in R&D for high end projectors proved to be wrong. Moreover Sony supplied one of the important component to BPS’s projectors, tubes. Therefore, BPS has to reply on Sony for tubes until they find other comparable suppliers. Sony could easily stop supplying tubes to BPS and cut down its sales...
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...Barco Projection Systems (A): Worldwide Niche Marketing Case Write-Up – Decision Case – BPS and its Product Line Strategy: Barco N.V originally started as a producer of radio broadcast receivers in 1934 and gradually made its way to the broadcast monitor and professional video equipment markets. After a global recession that followed the 1977 oil supply shock, the company decided to redefine its focus from consumer markets to industrial markets in order to keep its position in the industry. Dejonghe, Claerbout, and Dursin who were responsible for BPS’s R&D, marketing and sales department, worked closely together on projectors throughout the decade. The second largest division of Barco N.V, Barco Projection Systems (BPS) was formed in the early 1980s to enter the video projection market. It played a key role in the development of niche market and BPS had differentiated its products amongst other competitors in the market by its superior projector scan rates. For example, its most sophisticated product – graphic projectors – had “scan rate of 16kHz to above 64kHz, and accepted input from powerful computer-aided design and manufacturing systems, as well as from video and data sources” (page 3). The brand name was established in a variety of entrainment, training and presentation markets. Despite its 4% low growth rate of worldwide market for graphic projectors, BPS still had most shares in graphics compared to its competitors. BPS’s main competitor – Sony Components and...
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...projectors, data projectors, and graphics projectors. Video projectors were designed for the compatibility with standard video sources, and were scanned at 16kHz. Data projectors were used for displaying input from personal computers as well as video sources, and were scanned at 16kHz to 45kHz. Graphics projectors could accept input from powerful computer-aided design and manufacturing systems, as well as video and data sources, and were scanned at 16kHz to 64kHz. Barco’s first projector was a video projector for showing movies on airplanes. From there Barco developed its projector market share and moved on to more complicated products, which included the use of the projectors with computers. Their intention was to tap on the highly niche high-end market and not the general consumer market for projectors. They focused on research and development to integrate the fast moving technology into their projectors so as to keep up to date. The constant improvement of their technology was essential and their final aim for the development of projectors was the digitally controlled projector market. Barco also aims to have the first mover advantage in their products. They aim to release their high performance products into the market as the innovator of the product, thereby selling it for a premium. Upon competition arriving, they would then move on to products of a even higher calibre. They do not intend to enter into price wars with competitors as they feel that they have nothing to...
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...International MBA 2007-2008 Assignment Marketing Barco Case Prof. Dr. ir. Marion Debruyne Michel Defloor Kristof Geilenkotten Mark Veugelers Nathan Vastesaeger Wim Van de Velde Barco Projection Systems Division Content Table 1. Brief diagnosis and definition of the main problem 2. Analysis of the main problem 3. Recommendations and justifications a. Product development plans b. Pricing of current products c. Pricing strategy in light of BG800 launch d. Summary 4. References 5. Exhibit 1 6. Exhibit 2 Page 2 of 8 Barco Projection Systems Division 1. Brief diagnosis and definition of the main problem Based on Barco’s commitment to Product leadership as a competitive edge, Barco has chosen a niche market of technically superior projectors. This allows Barco, as a performance and product leader, to charge higher prices than the competition. Sony’s surprise introduction of the 1270 is a clear outpacing attack(1) on Barco’s niche market. The 1270 from Sony is considered technically superior and lower priced, compared to Barco’s planned projectors. Traditionally, Barco has segmented the market for its products on the basis of the scan rate of projectors into three main segments: video, data and graphics. Sony is trying to overcome this segmentation by addressing the data and graphics with one superior product (1270). Barco now has to deal with the following issue: Sony will launch a superior product, forcing Barco out of its technical leadership, and at a lower price...
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...CASE STUDY: BARCO PROJECTIONS SYSTEMS THE ISSUE Barco Projection Systems (BPS/Barco), a strong player in the Projection Systems business and the market leader in graphic projectors, were taken by surprise by competitor Sony’s offering of a superior graphics projector likely to be launched at a lower price. Barco needs to counter the new model by launching new and superior models quickly and re-pricing existing models. Team A’s rationale takes shape over the following pages. THE MAIN PLAYERS * Barco Projector Systems * Sony 5’ C’s ANALYSIS: Customers / Context / Company / Collaborators and Complementers / Competitors ANALYZING CUSTOMERS Customer for projection systems ranged across industry. Projection systems were used in training rooms and boards, in entertainment centres, in the gaming industry, and in airplanes and flight simulation rooms. Customers were sourced from a wide cross-section of industries. So the customer pool was huge, but also demanding. The products needed to keep up with constant improvements in computer and video technology. Customers typically bought a new projector every 5 years, and purchased more performance than needed because of the ever increasing computer scan rates. Focus needed to be on delighting customers and providing good after sales support because the repeat customers were important – for replacements every 5 years but more importantly as these customers expanded their...
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...For exclusive use Great Lakes Institute of Management (GLIM), 2015 9-591-133 REV: MAY 9, 2002 ROWLAND T. MORIARTY Barco Projection Systems (A): Worldwide Niche Marketing On Saturday morning, September 23, 1989, Erik Dejonghe, Frans Claerbout, and Bernard Dursin were drafting a crucial presentation that Dejonghe was scheduled to make to the Barco N.V. board of directors on Monday. As senior vice president and chief operating officer (COO) of Barco N.V., with responsibility for Barco’s Projection Systems Division (BPS), Dejonghe had to respond to a competitor’s recent move that threatened the heart of the division’s sales. Claerbout, the general manager of BPS, and Dursin, in charge of managing Barco’s distribution subsidiaries and coordinating worldwide marketing of projectors, had both worked closely with Dejonghe to formulate the company’s options. One month earlier, the Sony Corporation surprised BPS and the rest of the industry by unveiling its 1270 “superdata” projector at the Siggraph trade show in Boston. At Siggraph, Sony’s product seized first place as the industry’s highest-performing projector from BPS’s BG400. More damaging, the 1270 was rumored to be priced 20% to 40% below the established market price in its performance class. The industry saw the 1270’s positioning as an attempt to widen the market through lower prices. For BPS—a small, batch manufacturer—the 1270’s combination of low price and high performance threatened both to collapse...
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...INDIAN INSTITUTE OF MANAGEMENT UDAIPUR CASE: BARCO PROJECTION SYSTEMS(A)WORLWIDE NICHE MARKETING SUBJECT: MARKETING 1 INSTRUCTOR: Prof K.R.Jayasimha NAME | ROLL No. | MANISH KAKATI | 111025 | NIVEDITHA NADIMPALLI | 111028 | SONU ROSHAN EKKA | 111052 | VIKRAMADITYA GUHA | 111058 | EXECUTIVE SUMMARY The following immediate actions are recommended to BARCO PROJECTION SYSTEMS(A): * To stop the development of BD700 and give full priority to BG800. * To set price of BG800 above the 1270’s price. * To retain current BG400 price until launch of the BG800. * As the market segmentation between the BG & BD series is becoming less strong with the introduction of the 1270 it is recommended to reduce the price of the BD400 & the BD600 so as to value ratio that is out of balance compared with the BG800. * To maintain a competitive edge, BARCO have to adopt innovative technologies. Failing to do so will result in BARCO being a follower rather than a tech. leader. * Apart from adhering to their catering products for niche market, it is imperative that BARCO continue to devote commitment to research and development to retain quality products and their market leadership. PROBLEM STATEMENT: BARCO Projection Systems( BPS) is a company that designs , manufactures and markets sophisticated video projectors for industrial applications. In 1989, SONY Corporation, launched...
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...Barco-case Barco Background and Strategy Barco Projections Systems (BPS) was the second biggest division of Barco N.V.. The division employed 350 employees and accounted for 23% of Barco N.V.’s total revenue in 1988, which grossed $35 million. The BPS division was formed due to the large growth momentum during the 1980’s in order to pursue the highly opportunistic technology of video projection. Originally, Barco N.V. began as a producer of radio broadcast receivers and over the years the company expanded its product line into broadcast monitors and professional video equipment. It was not until the global recession after the 1977 oil supply crisis, demand and sales for Barco’s consumer products diminished greatly. At this time, the Barco company repositioned its firm during the 1980’s with three clear cut elements that was to shape its vision and strategy. The visions were three fold: Barco committed itself to become an industry leader in distinct, but complementary niche markets; it would create a strong commitment to research and development; and lastly Barco sought to expand its international presence in sales, product development, and production. On the one hand while Barco was establishing its strategic vision for the projection industry, on the other hand the company was redefining its industry as a whole and setting the bar of high end quality projectors. The product line that rolled out from the Barco Projection Systems division were all based on...
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...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...
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...Breakout Rooms and General Sessions. If you possess these qualities and have experience with the following positions and their responsibilities, then we would like to meet you. **AV Technicians Set/Strike** Must know how to wrap cable, and lots of it. Setting screens, projectors, mixing boards, small sound systems, wireless mics, pipe and drape for various events ranging from meeting rooms, general sessions, and exhibits **AV Technicians Room Ops/Floaters** Experience with floating/monitoring meeting rooms, operating basic video switchers, sound boards, LCD projectors and power point. Good customer services skills and A/V troubleshooting skills **Audio Engineers (A1)** Experience with Live Sound Reinforcement for General Sessions, VIP Events, and breakouts (Meyer Sound Systems, JBL Vertec Line Arrays, Yamaha Digital Consoles, Mackie Consoles, wireless microphone frequencies, etc.) **Audio Assistants (A2) ** Experience with General Sessions (Show A2) Wireless Mic Frequency assignments and proper mic placement Meeting Rooms - Smaller Sound System operations and various recording equipment **Video Engineers (V1)** Experience with projectors (Barco and Christie) and switchers...
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...Barco Projection Systems (A): Worldwide Niche Marketing Context Sony (one of the major competitors of Barco) has introduced the 1270 super data projector in the market, announcing better performance and lower prices than the best projector which Barco has currently to offer in the market. Such a move by Sony is a possible threat to eliminate the niche market which Barco has targetted. Barco needs to decide the future course of actions based on the sudden announcement of Sony and react promptly. Strategy options Barco has the following three options as courses of actions to choose from as their strategy in response to Sony's move: 1. Lower prices of BG400 and BD600 to hold on to market share and not give it away to the cheaper Sony 1270 2. Make advances in the already flowing project for BD700 and work on the launch of a digital graphics projector, the BG700 3. Stop projects on developing BD700 and instead start working on getting BG800 to market at the earliest Strategy to opt for I would suggest Barco to go with option 3 from the list above. Rationale behind my suggestion are enlisted as follows:- Why not option 1? * Cutting down on prices of well-known products offered by Barco would negate the reputation earned by these products and result in brand equity erosion for Barco * Barco was never in a price war with Sony, and should not opt for such a path just in the spur of the moment as reaction to the sudden news * Sony has still not announced what the...
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...Employers classify Jobs as either exempt or nonexempt by following the criteria outlined in the Fair Labor Standards Act (FLSA). Nonexempt employees are covered by these rules and regulations, while the exempt are exempted from these rules and ... Activity-Based Management essay Kemps LLC used ABC (Activity Based Costing) model to improve aspects of its organizational structure (Heisinger, 2009 & Anonymous, n. d.). Kemps used it as a resource exercise in assessing its employees through appraising its workers during ... Barco Projection Systems essay This study focuses on Barco Projection Systems as an entity requiring a change in tactics in order to rejuvenate its activities. The study explores the likely marketing options that the company can adopt to rediscover its top position in the ... Changes in an Organisation essay According to Child and Smith (1987), changes in an organisation are an observable turn of events or things in an organisation’s life in terms of carrying out tasks, operational and cognitive actions over a stated time. Organisational changes ... Classical Studies of Leadership essay The classical theories on leadership link the traditional and modern theories of leadership. The classical three theories of leadership are trait theory, behavioral theory and the situational theory. The trait theory This theory originates from ... Classroom Management essay Effective management of classroom is important in creating a favorable learning...
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...Company: * High End Video Projection Systems: Parent company in the production of consumer electronics since 1934 * One of the top 3 manufacturers in all the sub-segments of products * Niche products through small batch manufacturing process, leveraging its expertise on R&D strength and quality products * Focused approach * Only entered markets with in-depth knowledge and has potential to become one of the leading players * Strong focus on R&D - ~10% of margins and 15% of work force allocated to R&D * Global expansion through a plethora of inorganic activities * Limitations: * Marketing & Distribution Network (Compared to Sony) * Manufacturing Operations – Relying on Sony components for tubes * Barco’s over reliance on Sony for tubes resulted in Sony taking advantage of Barco’s constraints and launching a product that is much more advanced compared to the existing products in market * Barco’s bargaining threats with Sony components of switching supplier had partly led to the aggressive strategy pursued by Sony * It is pretty normal for competitors to take advantage of the constraints of rivals and Barco’s inability to find out a reliable supplier and diversify its base has costed them dearly * Financial Constraints – Very limited resources to go for a price war, compared to the large multinational consumer retailers such as Sony * Product differentiation – Scan Rate:...
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...Its general strategy comprises of three key elements: leadership in complementary niche market; strong commission in R&D; expand its international presence in sales, product development and production. As such, it became one of the top three worldwide manufacturers in each of its product lines: automated production control systems, graphic arts, computer-aided design and industrial projection. The global projector market was estimated to grow 8.5% per annum with graphics projectors having the highest growth potential at 40.2%. United States and Western Europe comprises 88% of the market. Barco’s strength* is with the graphics projectors with a market share of 55%, followed by data projectors with 23% (second to Sony’s 49%). Zooming into Barco’s product line strategy, it segmented markets by scan rates and developed products targeted at addressing the needs of specific segments in the industrial market. It focused on differentiating its products through technology and its sophisticated applications. This created uniqueness for its products and confined competition to a niche segment that is willing to pay premium rates for the quality desired. By 1989, Barco established itself in the entertainment, training and presentation market with three product lines: video, data, and graphics. Barco's projectors had a reputation with dealers for the highest quality final image and excellent reliability once fully installed. And this affirms its technology development, R&D, company’s infrastructure...
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...CASO BARCO PROJECTION SYSTEMS “WORLDWIDE NICHE MARKET” PREGUNTA 1: ¿QUÉ PRETENDE HACER SONY? ¿ATACAR O DEFENDERSE? Es un ataque sincronizado para colapsar el mercado e impedir la reacción inmediata del resto de sus competidores, con la bajada de precios. Hasta este momento en principio competían en subsegmentos distintos, ya que Sony no buscaba tanto la calidad si no precio y por el contrario BARCO se basaba más en la calidad que en el precio, creemos que toda esta situación surge en la mala interpretación que hace BARCO al subestimar a sus competencia y esto le hace relajarse en lo referente a uno de sus principales principios que es la inversión en I + D, ya que si no hubiesen desechado la incorporación de la lente de 8” y hubiesen adaptado sus proyectores a este lente, con la consiguiente mejora de calidad, no se encontrarían ahora en esta tesitura. Por otro lado BARCO comete el error de estar en manos de la competencia de SONY, no sólo al subestimarlos y pensar que no van a atacar a su subsegmento, si no además al ponerse en manos de una de sus sociedades dependientes en cuanto al suministro de lentes. Además SONY tiene un mayor número de distribuidores que a pesar de que prefieran vender BPS (x cuestión de margen), no pueden vivir sin dejar de vender SONY. La red de distribuidores de Sony es elevadamente más numerosa que la de BPS, por lo que si al final logran igualarlos en calidad BPS está perdida, estamos hablando de que si al final el precio es inferior, podríamos...
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