Barco Case Study
Problem Statement: In the light of the recent development, Barco has to decide which product amongst BD 700, BG 700 and BG 800 to introduce.
Analysis : Desperate Times Call for Desperate Measures. After the recent introduction of 1270 Projector by Sony, all the plans and projections of Barco have gone awry and moving towards the development of BG 800 seems to be the best option. The SWOT Analysis below illustrates the same :
Development of BG 800 – SWOT Analysis
Strengths Weaknesses Oppurtunities Threat
Can help Barco Maintain its Market Share. Strict Deadline to Meet. Market for Projectors expected to grow @ 8.5 % and for Graphic Projectors @ 40%. Fujinon does not agree to supply lens.
Better Product than Sony 1270. Exhausted Human Resource. BG 800 can be a market leader and a new industry standard. Sony Components stop supplying 8 inch tubes.
Can save Barco from losing 75% of its forecasted 1990 profits. Sony starts a Price War.
BD 700 : One of the three options is to continue with the development of BD 700 considering the fact that the company has already spent a lot of time and money on its development and orders had started pouring in already. This is a digital upgrade of BD 600 but in terms of performance it does not match with Sony 1270. It will not be able to compete with Sony 1270 in terms of price, BD 700’s tentative price is 16000$ and the Sony 1270 is expected to be priced in the range of 15000$~20000$. If Barco goes ahead with the production of BD 700, it will have no product to match Sony 1270 either in terms of performance or price and 1270 will make a dent not only in the Data Segment but also in the Graphics Segment.
BG 700 : It has a 7 inches tube and will suffer in performance when compared with Sony 1270 on various parameters :- light output, Picture Quality and Resolution. It will get very difficult for Barco to market and sell this product, it might have to resort to price war with Sony which will only dent the bottom line.
BG 800
Analysis : Desperate Times Call for Desperate Measures. After the recent introduction of 1270 Projector by Sony, all the plans and projections of Barco have gone awry and moving towards the development of BG 800 seems to be the best option. The SWOT Analysis below illustrates the same :
Development of BG 800 – SWOT Analysis
Strengths Weaknesses Oppurtunities Threat
Can help Barco Maintain its Market Share. Strict Deadline to Meet. Market for Projectors expected to grow @ 8.5 % and for Graphic Projectors @ 40%. Fujinon does not agree to supply lens.
Better Product than Sony 1270. Exhausted Human Resource. BG 800 can be a market leader and a new industry standard. Sony Components stop supplying 8 inch tubes.
Can save Barco from losing 75% of its forecasted 1990 profits. Sony starts a Price War.
BD 700 : One of the three options is to continue with the development of BD 700 considering the fact that the company has already spent a lot of time and money on its development and orders had started pouring in already. This is a digital upgrade of BD 600 but in terms of performance it does not match with Sony 1270. It will not be able to compete with Sony 1270 in terms of price, BD 700’s tentative price is 16000$ and the Sony 1270 is expected to be priced in the range of 15000$~20000$. If Barco goes ahead with the production of BD 700, it will have no product to match Sony 1270 either in terms of performance or price and 1270 will make a dent not only in the Data Segment but also in the Graphics Segment.
BG 700 : It has a 7 inches tube and will suffer in performance when compared with Sony 1270 on various parameters :- light output, Picture Quality and Resolution. It will get very difficult for Barco to market and sell this product, it might have to resort to price war with Sony which will only dent the bottom line.
BG 800