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Barco Projection Systems

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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 its 1270:
BPS was confident in keeping its market share until the introduction of Sony’s 1270. It was introduced as a “superdata” projector that was with a scan rate of 75kHz, while Barco’s highest scan rate offered was 72kHz (BG400). It featured Sony’s newest 8” tube, which gave higher result in performance in terms of brightness, image quality and resolution. Now, Barco was faced with...

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