Barco

Barco Projection Systems (A): Worldwide Niche Marketing

BARCO has three main options Product development options

Product Development options

* Introduce BG800 a competitive projector: Introducing a much better version with 90KHZ scan compared to Sony 1270’s 75khz by the Infoconn which requires to stop every other line item in production and even after that has a 40% chance of completion on time. It will have great performance, which will strip Sony of the gains.

* Introduce BD700: Following this approach BARCO should complete the BD700, which is already in pipeline. Although it’s not in par with 1270 of Sony it will certainly get some market share from Sony.

* Delay BD700 and introduce BG700: To introduce BG700 with the same scan rate as the 1270 in the graphics segment and delay the BD700 and just use it as a springboard for the launch.

The introduction of BG800

1. It would require huge amount of resource allocation. It will help in dealing with the threat of market annihilation.

2. The timely introduction of this even after all the allocations and stretching the limits of everything to the maximum has bleak chances of 40%.

3. It will lead to postponing of BD700 for which orders have been taken and production process has been initiated.

4. This deferment will give a bad customer rating and will tarnish the reputation.

5. The product has even better specs (90khz) than Sony’s 1270 and will save the market share as well as strengthen BARCO’s reputation as ingenuous in technology.

The cons outweigh the benefits and the uncertainty of the benefits suggests deferring this option.

Delaying BD700 and introducing BG700

1. It will reduce the cannibalization by 1270 on BARCO’s products.

2. BARCO will be able to introduce a better product comparable to 1270.

3. This product will self cannibalize BD700.

4. The R&D plans will be delayed and even the launch of BD700 will be delayed and uncertain and the data segment...