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Barco Projection Systems

Case Study Analysis

Rochak Mathur13P163Kush Kumar13P149

Aviral Bansal13P135

Devasheesh Mathur13FPM91

Rattan Preet Singh13P161

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Overview

Situational Analysis

Problem Analysis

Decision Analysis

Plan of Action

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Situational Analysis (1/3)

BPS Genesis

Born out of BARCO N.V. in 1981 after focus realignment in late

1970s

New Focus:

Vision to be a leader in the niche product market

Strong commitment to R&D (8 to 10% of turnover)

Expansion in product development and international sales

By 1989 developed three lines of projectors:

Video

Data Graphics

Superior Technology and Quality

Highest scan rates in the production

Wide ranging applications

Continually upgrading scan rates to be competitive

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Situational Analysis (2/3)

Forces behind BarcosProduct Evolution

Constant search for best possible image quality Flexibility towards inputs

Increasing user friendliness

BPS used scan rates to segmentize its market

Video Projector < 16kHz Data Projectors 16 to 45 kHZ

Graphics Projector 16 to 64 and above

BG 400: Industrys best scan rate @ 72 kHz

Two types of Distributor: Box and System

Prefer their products due to higher profit margins

Some complain for the complexity of the products

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Situational Analysis (3/3)

Future Projections Digitally Controlled Projectors

Turnover expected to grow 50%

Major Competitors: Sony: Largest percentage in Data and Video segment

Electrohome: Next to BPS in Graphics

NEC : Pioneered digital convergence technology

Reliance on Sony for supply of projector tubes

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Market Share (1/2)

0

10

20

30

40

50

60

Barco Sony EH NEC

Market Share (%) in Data Projectors

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Market Share (2/2)

0

10

20

30

40

50

60

Barco Sony EH NEC

Market Share (%) in Graphics Projectors

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Problem Analysis

Relied on their direct competitor Sony for tube Could squeeze them out anytime by raising prices

Put their faith on Sony business practices

Over confident about their future projections Predicted Sony to remain below BPS standards Did not incorporate better 8 tube offered by Sony

Launch of 1270 projector by Sony

Rumored to be priced 20 to 40 % below standard Best scan rate and clarity in the market

BPS could lose 75% of its projected profits

Pressure by distributors to reduce price

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Decision Analysis (1/3)

Go ahead with scheduled development of

Digitally controlled projectors

Will be easy to implement

Timelysupply of advance orders

Can make organizedplan to develop projector to

compete against 1270

Can capturemarket with their first digital projector

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Decision Analysis (2/3)

Develop BG700 using BD700

development as spring Board

Will lead supply delayof advance orders

Will still be inferiorto 1270

Can create a dentin loyal customer base

and strong distribution network

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Decision Analysis (3/3)

Immediately commence Development of

BG800

Futilityof already invested resources (180 person

months)

No arrangement of lens

Will put pressureon employees

Only 40% chance of meeting the Infocomm

deadline

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Plan of Action (1/2)

Continue with scheduled development of

BD700

Shun the development of BG700 as cant

compete with 1270

Start planning development for superior

variant BG800

Will give them time to analyze the strength and

price range of 1270 and compete accordingly

Places them ahead in the next development

cycle

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Plan of Action (2/2)

Should tie up with some lens makers

and invest in R&D

Also seek substitute tube suppliers

Should focus on Asian market,

develop efficient distribution network

(Table B)

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