Barco Projection Systems

Case Study Analysis

Rochak Mathur 13P163
Kush Kumar 13P149
Aviral Bansal 13P135
Devasheesh Mathur 13FPM91
Rattan Preet Singh 13P161
Overview
Situational Analysis
Problem Analysis
Decision Analysis
Plan of Action
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

Situational Analysis (2/3)

Forces behind Barcos Product 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



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
Market Share (1/2)
0
10
20
30
40
50
60
Barco Sony EH NEC
Market Share (%) in Data Projectors
Market Share (2/2)
0
10
20
30
40
50
60
Barco Sony EH NEC
Market Share (%) in Graphics Projectors
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
Decision Analysis (1/3)
Go ahead with scheduled development of
Digitally controlled projectors
Will be easy to implement
Timely supply of advance orders
Can make organized plan to develop projector to
compete against 1270
Can capture market with their first digital projector

Decision Analysis (2/3)
Develop BG700 using BD700
development as spring Board
Will lead supply delay of advance orders
Will still be inferior to 1270
Can create a dent in loyal customer base
and strong distribution network

Decision Analysis (3/3)
Immediately commence Development of
BG800
Futility of already invested resources (180 person
months)
No arrangement of lens
Will put pressure on employees
Only 40% chance of meeting the Infocomm
deadline
Cannot supply advance orders
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




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)



THANK YOU