BARCO PROJECTION SYSTEMS:

CASE ANALYSIS

After a thorough analysis of the case, it was found that the following options are available with
Barco:

STRATEGY Rationale Pros and Cons

Lower the price of BD700
To compete with Sony 1270 Pros
priced at $15-20,000 with a scan Since this will be
rate of 75Khz, BD700 which has a produced within a
scan rate of 64Khz should be month, it will be able to
competitively priced at: meet the Infocomm
=(17,500/75)*64 deadline.
=$15,000 Advance orders will be
Expected revenue before fulfilled
lowering the price = $4.3 Million Cons
Expected revenue after lowering Inferior technology
prices (keeping no. of units than Sony
constant) = $4.03 Million Lose brand image and
market share. Failing to
cater to the Niche
market.

Produce BG700 Scan Rate 72-75 Khz Pros

Current price/scan rate of Sony = Matches the Scan rate
233 with Sony 1270
Price/Scan rate of BG700 must Companys brand
be reduced to $233 from current image of being
$333 to compete with Sony. innovative is
Therefore, it must be priced at maintained
$17,500 Cons
However, due to lower picture Product is still inferior
quality, it might have to reduce to Sony1270 in terms of
its price to $15000-$16000. picture quality
Delay in launch of
BD700 by 2-3 months
leading to delay in
fulfilment of advance
orders.

Produce BG800 As Barco has image in strong Pros

R&D and innovation, it should Technically superior to
also continue to develop BG800 Sony1270
to capture market share again in Exceeding customer
far future. expectations in terms
Scan Rate 90Khz of innovation
Current price/scan rate of Sony = Cons
233 Only 40% chances of
Therefore, it must be priced at making it to the
$21,000 to compete with Sony. Infocomm deadline
 Delay in BD700
Negative effect on
workers due to
overtime

CONCLUSION:

Barco Projection Systems should go ahead with the launch of BG700 at $15000-$16000 as it will be a
positive reinforcement for the brand value of Barco as an innovative company. In the long run, in
order to compete with Sony 1270, Barco should pursue the R&D for BG800 and launch it next year.