1. Describe the product line strategy of the Barco Projection Systems Division?
BPS has followed a market segment based product line. BPS differentiated these segments based on the scan rate of the projectors. Video segment projectors had scan rates of 16 kHz, data projectors had scan rates ranging from 16 to 45 kHz and graphics projectors at the higher end had rates from 16 to above 64 kHz. BPS was the leader in the graphics projection segment which was a niche market.
Historically, Barco entered the projections market with the lower-end scan rates for video applications and has been adding depth to its product line by improving the scan rates. Thus, subsequently BPS created data projectors and ultimately graphics projectors. However, BPS had been limiting the projector scan rates in each of these three segments thereby clearly differentiating the products in terms of the segments. 2. On page 12 of the case, Dejonghe comments that “all of our projections, however were based on the assumption that Sony would respect our vision of the market place’. What does this mean? When does one competitor accepts another’s vision of the market?
Traditionally, BPS’s competition had followed its practice of segmenting the projections market by the scan rates. By strong commitment to R&D, BPS had brought about continuous improvements in the projector scan rates and thus established itself as a comprehensive player with presence in all the segments. Based on this, BPS had a vision that it will continue to drive the technology improvements in the market (in terms of the scan rates). Also, Sony had always positioned its projectors below that of BPS in terms of performance. This made BPS assume that Sony will follow its vision of the market.
Generally, a competitor might accept another company’s vision of the market if the other company – a. Is a clear market leader and has a good understanding of the...