Barco Case Study

Our case study begins in September of 1989, with the projector market historically divided into three distinct groups: Video, Data, and Graphics. Barco Projection Systems (BPS), a division of Barco N.V., is currently in control of the majority of the Graphics market and nearly a quarter of the Data segment worldwide. While BPS does offer products for the Video market, this segment is becoming highly commoditized, so less effort is being placed on developing those products. BPS is perceived as the technological leader for high-end projectors and E.H. has been nearly the only competition for the Graphics segment. Sony has been strong competition for the Data segment, surpassing BPS’s market share worldwide. Historically though, BPS has consistently offered higher-end products at about 15% higher price than Sony.

Now however, Sony has unveiled the 1270 projector, which surpasses the performance of even BPS’s most powerful Graphics projector. What complicates the situation further is that the price of the projector is rumored to be in line with BPS’s Data projectors. If these rumors are true, Sony will be in a good position to steal BPS customers from both the Data and Graphics segments.

Given this information, BPS has many choices to make that will affect the future of their product line. Our recommendation is to continue with the planned release timeline of projectors and focus on meeting customer expectations in terms of ship dates and quality. Then BPS can focus on releasing a superior product, the BG800, next year. This decision will support and strengthen the development of the BPS brand, follow a rational course of development, and secure our market position.

There are many alternative options available as well. The Data projector currently scheduled for release next month, the BD700, could be delayed until December while work is done to create a previously unplanned Graphics projector, the BG700, which would narrow but not close the performance gap with the...