Barco's Case Analysis
A CASE ANALYSIS OF BARCO PROJECTION SYSTEMS NEW PRODUCT DEVELOPMENT, PRICING AND MARKETING STRATEGY
Problem Definition
Barco Projection Systems faces a challenge to its market dominance by the introduction by a rival, Sony, of a product of purportedly greater quality than BPS offerings, at a cheaper price. BPS faces a dilemma on how to respond to Sony’s introduction of the 1270 projector into the high performance projector market, at prices that would threaten BPS’s hold across the its entire niche market segmentation.
BPS also has to address the optimal product development path for its new products, reexamine its marketing focus and company perception, reexamine its manufacturing integration processes, market pricing strategies and overall adjust to a new competitive reality in the market.
Case Analysis
Overview
Sony Corporation surprised BPS by unveiling the 1270 super data projector at the Siggraph trade show in an attempt to prevent a competitive response by BPS and the rest of the industry. The 1270 was designed to compete with BPS’s highest performing projector on the market (BG400) and is reportedly priced at a range that would undermine BPS market share of the high performance projector market and affect the wider industry at large. BPS also faces questions about its geographical market focus, its vertical integration strategy, its market brand perception and its pricing strategy in lieu of Sony’s product.
Analysis
The introduction of Sony’s 1270 presents the biggest challenge to BPS in its company history since the 1977 oil supply shock and revealed inherent flaws in the company marketing strategy, consumer vision, manufacturing processes and pricing strategy. BPS has to respond to Sony in order to save its market share but also has to address long term issues that have being revealed by the challenge from Sony.
We need to first address the short term implications of the introduction of the 1270 and BPS’s response to it. The fact
Problem Definition
Barco Projection Systems faces a challenge to its market dominance by the introduction by a rival, Sony, of a product of purportedly greater quality than BPS offerings, at a cheaper price. BPS faces a dilemma on how to respond to Sony’s introduction of the 1270 projector into the high performance projector market, at prices that would threaten BPS’s hold across the its entire niche market segmentation.
BPS also has to address the optimal product development path for its new products, reexamine its marketing focus and company perception, reexamine its manufacturing integration processes, market pricing strategies and overall adjust to a new competitive reality in the market.
Case Analysis
Overview
Sony Corporation surprised BPS by unveiling the 1270 super data projector at the Siggraph trade show in an attempt to prevent a competitive response by BPS and the rest of the industry. The 1270 was designed to compete with BPS’s highest performing projector on the market (BG400) and is reportedly priced at a range that would undermine BPS market share of the high performance projector market and affect the wider industry at large. BPS also faces questions about its geographical market focus, its vertical integration strategy, its market brand perception and its pricing strategy in lieu of Sony’s product.
Analysis
The introduction of Sony’s 1270 presents the biggest challenge to BPS in its company history since the 1977 oil supply shock and revealed inherent flaws in the company marketing strategy, consumer vision, manufacturing processes and pricing strategy. BPS has to respond to Sony in order to save its market share but also has to address long term issues that have being revealed by the challenge from Sony.
We need to first address the short term implications of the introduction of the 1270 and BPS’s response to it. The fact