Essay About Barco Projection Systems And Sony Corporation

Barco Projection Systems (a): Worldwide Niche Marketing
Case Study AnalysisCase: Barco Projection Systems (A): Worldwide Niche MarketingSubmitted byJigar Kantharia [email protected] of Submission: 8-August-2018Problem StatementBarco Projection Systems (BPS) was the second-largest division of Barco N.V., a company with headquarters in Belgium. This division was established to pursue the emerging technology of video projection. The company’s strategy was to become the top manufacturer of quality projection systems with the help of dedicated research and development team. BPS suffered a significant setback in Graphics Projection Market when their competitor, Sony Corporation, introduced 1270 “superdata” graphics projector at the trade show in Boston. This projector was a threat to BPS’s BG400, the highest performing graphics projector of the company. Sony’s 1270 offered better scan rate, image quality and resolution compared to BPS’s BG400. Also, Sony’s projector rumored to be priced at a below-established market price. It seems Sony Corporation is eying the GRAPHICS PRODUCT SEGMENT which is predicted to grow at an annual growth rate of 40.2% during 1989 to 1994, the highest growth rate among all product segments of projection systems, i.e., Graphics, Video, and Data.  They are entering the new market with a new product coupled with quality and price beyond the reach of competitors in short run. It has dramatically affected the BPS’s strategy to focus on top-of-the-line products in niche markets.  The company’s strategy was to be among the top three manufacturers backed by in-depth knowledge of technology and market supported by dedicated research and development plan.  Sony’s 1270 targeted the U.S. and European markets – markets that represented 83% of BPS graphics revenue and 91% of its data revenues. Their new product development team will have to decide whether to focus on competing with Sony’s 1270 Graphics Projector or stick to their original product development schedule.    Case Study AnalysisCase: Barco Projection Systems (A): Worldwide Niche MarketingEnvironment Scanning of Projector Markets and Positioning of BPS(i)  Understanding Market for BPS Projection SystemsBarco NV has a turnover of 1.39 Billion Bfr in 1988 (Ref. Exhibit 1) while its projection systems division (BPS) has 23% share in this turnover amounting to 0.32 Billion Bfr.  Table – 1BPS Sales by Segment, 1988Projector TypeUnits Sold during 1988(Number)% Units SoldThe share of Different Types of Projectors in the Total Revenue (Bfr in Billion)% Share of Principal ProductsBPS RevenueMargins (%)BPS Market Share (%)BPS Projected Annual Growth Rate 1989-1994 (%)Video154035.000.11 20.008.001.40Data233253.000.17 51.0023.0012.30         BD6001842  79.00   Graphics52812.000.04 29.0055.0025.00        BG400449  85.00   Total44001000.32 100.00