Barco Projection Systems Case Study Example | Topics and Well Written Essays - 1000 words

Barco Projection Systems - Case Study Example The BPS division entered into other market segments like data and graphic providing variety of choices to the companies with varying scan rate from the receiver. It is important to note that all the products i.e. three lines of products were built around 7† tube. BPS line of products, however, differentiated from other products on this basis of its performance, which was mainly measured across scan rate. The product line strategy BPS was to continuously develop its product range by research and development which resulted in other products with varied scan rate and price structure. It is however important to reiterate that every product which came out from the BPS division was superior version to the earlier product in terms of visibility, quality, clarity and scan rate. The strategy of Barco Projection Systems is further clarified by Frans Claerbout, General Manager, who remarked that â€Å"BPS product line was driven by three forces like the constant search of the best possib le image, flexibility towards input and increasing user friendliness†. The strategy is evident from the exhibit given below which shows that since developing a video projection system in 1982, the company has continuously managed to develop its line of product through market creation and segmentation, improving the quality and performance along with cost price. BPS, since 1982, has developed five products in video segment, six in data segment and two in graphic segment thus gradually increasing its line of product justifying the remarks of Claerbout regarding the constant pursuit for best image and customer friendliness. Situation Analysis After the introduction of Sony’s 1270 projection system, Barco felt threatened as the product had everything to compete in the market of projectors. Though Sony’s 1270 shocked the industry, Dejonghe was not at all surprised because Barco already had presumed about such thing to happen but not in such a big way. Barco assumed th at Sony would launch a product which will be a direct competitor for BD600 and therefore prepared themselves to launch their product, a 64 kHz digital machine. This led to a remark by Dejonghe who mentioned that â€Å"all of our projections, however, were based on the assumption that Sony would respect our â€Å"vision† of the marketplace’. In regard to this, it is clarified that Barco was purchasing 7† tubes from Sony which were used to build projection system as these tubes provided superior clarity than other products in the market. Dejonghe once came to known about Sony that their goal was to capture 50% supplier and consumer market but not to beat Barco in project. It was hitherto assumed that Sony respected the vision of Barco in the projection systems market. Competitors respect others vision in the marketplace so as to embrace new way of doing business which is necessary to get beyond the narrow framework of self interest and to realize the potential of marketplace transactions grounded in an intrinsic respect for all stakeholders (Peil, 527). In the words of Dejonghe, Sony was not interested in competing with Barco and other competitors in the market on small scale in graphic segment and therefore aimed to conquer the data and graphics market which was dominated by Barco. It was necessary for Sony to create an image for themselves instead of being a just another manufacturer of projectors. Therefore, 1270 was launched with intense marketing and publicity to garner attention and create a brand image.