Barco Case

1. Describe the product line strategy of Barco Projection Systems Division.

Differentiated by scan rate:

* < 16kHz, video projector

* 16kHz – 64kHz, graphic projector (BG400, BG700, BG800,)

* >64kHz, data projector (BD600, BD700,)

2. At one point in the discussion, Dejonghe comments that “All of our projections, however, were based on the fact Sony would respect our ‘vision’ of the marketplace.” What does this mean? When does one competitor accept another’s “vision” of the market?

3. Why did Sony decide to reject BPS’s vision of the market in August 1989?

4. How serious of a threat is the Sony 1270? What are Sony’s objectives?

5. Did Barco make a mistake along the way – or do things like this “just happen” when competing in high technology businesses on a global scale?

6. What should Barco do now with respect to price?

7. What should Barco do now with respect to its product development plans?

What resources does Barco have that are relevant to the projector market (justify your answers where appropriate)?

What resources does Sony have that are relevant to the projector market (justify your answers where appropriate)?

Why do Barco dealers charge higher margins?

Who has market power in each segment of the projector manufacturing market?

What mistakes has Barco made that contributed to its current problems?

Predict how the market power will change in each segment of the market.„ What long range plans should Barco adopt?

In the short term, how aggressively will Sony respond if Barco cuts price?

In the short term, which product options should Barco adopt?