Barco Projection Systems (A): Worldwide Niche Marketing
In response to Sony’s low priced and high performance 1270 projector, Barco should continue with its scheduled BD700 and accelerate development for the BD800. Though the BD700 is the first digitally controlled projector with scanning frequency, it still would not be as competitive against Sony’s new model 1270. Therefore, Barco will have to launch this product with a significant price differential from the 1270 so that customers will be discouraged from upgrading. Their ultimate short term goal should be for buyers to purchase their moderately priced BD700 version over the more expensive Sony 1270. That is not to say they should create a price war with Sony, but merely defend their market share within the data segment.
Next, Barco should initiate the phases to develop BD800 at an accelerated pace. Implementing this product will entail an allocation of resources and assets, but alleviate the threat of Sony’s 1270 and equip Barco with a competitive edge. In order to surpass Sony, the BD800 would require a scanning frequency of at least 90 kHz as well as an 8” tube for the best possible performance. Upon meeting these requirements, Barco will be able to charge a premium price for the product. With both the BD700 and BD800 released, Barco will have diversity in the marketplace making Sony’s 1270 less of a threat.
As a long term plan, Barco should continue to better their technology through feedback, research and development. Investing in their R&D is necessary to develop top quality products and maintain brand awareness. They should find a more reliable source for raw materials or look into developing in-house. Ultimately, Barco needs to evaluate their current business model to explore ways that will eliminate them from having to absorb shocks from their competitors and say ahead of the game.
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