Group work Case unit 1
Barco Projection Systems (A): Worldwide Niche Marketing
Here follows a small summary and recommendations of the case.
Barco NV is a manufacturer company that produces broadcast monitors and professional video equipment. They focus on top of the line products in niche markets. The company’s strategy consisted out of three main elements. First they want to become a leader in variety of distinct, but complementary niche markets. And entered a market only if they have in-depth knowledge of that market. Second they are strongly committed to research and development. Third they seek to expand internationally. Within the company Barco NV there is a division called Barco projection systems (BPS). This division is responsible for creating the industrial projectors. They design, manufacture and market sophisticated video projectors for industrial applications. What normally differentiated BPS’s products from the rest of the market is scan rate. This is the speed at witch a projector is able to read and process incoming electronically signals. BPS has a two-step distribution system and owns four of its distributors in Belgium, France, UK and the US. Barco’s projectors have a dealer reputation for the highest quality final image and excellent reliability once fully installed. But dealers complain that the products are complex. In terms of market share they are the first when its concerned about graphics projectors. But with data projections they are second, whereas Sony takes the leading position. Normally Sony projectors are positioned below Barco’s in terms of performance and are also on average 15% lower in price. Sony eventually got real good in producing a good quality tube. Component part that’s used for inside the projectors. Because of this high quality Barco decided to take Sony as their new supplier for these tubes. So...
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