Barco Case Analysis

Topics: Marketing, Pricing, Price Pages: 4 (1462 words) Published: December 1, 2011
Barco Case

Group members: Siyu Liu , Yating Li
Che Zheng , Liang Dong, Xiaoxuan Gu

In order to maintain BPS high-end projector market and keep high market share in the marketplace on the existing of the competitive of Sony’s production, we had a drastic discussion about BPS’s situation. Through discussion, we define the problems that BPS is facing. Then, we analysis its three possible strategies which include pricing option, production development option and stability of supply option to deal with its dilemma situation. At last, we draw a conclusion that if BPS wants to survive in the high end market competition, it has to shift all of its attention on the development of BG800. II INTRODUCTION

BPS was the second largest division of Barco N.V with large numbers of employees and high market share that designed manufactured and sophisticated video projectors for industrial application. The element that makes it so different is that they produce the projectors with high scan rate. Its main competitor is Sony projector, whereas it obtains tubes from Sony in-house supplier, which means that BPS relies on a certain amount of technical and developmental information of Sony. But Sony’s activity shocked BPS that they launched superdata 1270 to seize the opportunities of BPS’s BG400. What’s more, the launch of 1270 may damage the high-end market of BPS, because Sony’s 1270 can be 20% to 30% lower. So BPS has to pay highly attention to deal with the problem. III. ANALYSIS

A. Problem Definition
BPS is facing a significant threat to its high-end market share and its traditional market segmentation. Because SONY introduced a “superdata” projector1270 which is with higher performance and lower price compared to BPS’s existing and proposed projectors. One problem is how BPS should price the existing products in response to the SONY’s 1270, keep the price or lower the price? If BG400’s price remains, it could lose a large part of market share...
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