...company’s overall growth, the last reduction in marketing and R&D costs may have negative implications and could lead to the erosion of its competitive advantage. As a technology company, Barco caters to innovators by providing leading edge technology; a decrease in R&D could hinder the company’s ability to provide premium products. 2. Words Describing Barco: All of BPS’s offerings are top-of-the-line. They share a “reputation for the highest quality final image and excellent reliability once fully installed” (pg.7). However, in seeking to provide the best available products, Barco has added complexities that are not particularly user-friendly. 3. Top 5 Key Issues: |5 Key Issues |Brief Description |Crucial | |How to react to Sony’s new 1270 product launch |It is estimated that BPS stands to lose as much as 75% of its forecasted 1990 |Yes | | |profits. There are 3 possible courses of action being considered that could | | | |determine the fate of the company. | | |Worried Barco-owned distributors (Germany and |With Sony’s introduction of the 1270,...
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...Barco Projection Systems (A): Worldwide Niche Marketing Context Sony (one of the major competitors of Barco) has introduced the 1270 super data projector in the market, announcing better performance and lower prices than the best projector which Barco has currently to offer in the market. Such a move by Sony is a possible threat to eliminate the niche market which Barco has targetted. Barco needs to decide the future course of actions based on the sudden announcement of Sony and react promptly. Strategy options Barco has the following three options as courses of actions to choose from as their strategy in response to Sony's move: 1. Lower prices of BG400 and BD600 to hold on to market share and not give it away to the cheaper Sony 1270 2. Make advances in the already flowing project for BD700 and work on the launch of a digital graphics projector, the BG700 3. Stop projects on developing BD700 and instead start working on getting BG800 to market at the earliest Strategy to opt for I would suggest Barco to go with option 3 from the list above. Rationale behind my suggestion are enlisted as follows:- Why not option 1? * Cutting down on prices of well-known products offered by Barco would negate the reputation earned by these products and result in brand equity erosion for Barco * Barco was never in a price war with Sony, and should not opt for such a path just in the spur of the moment as reaction to the sudden news * Sony has still not announced what the...
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...primavera de 1950, el Controller de Economy Shipping Co., ubicada cerca de Pittsburg, estaba preparando un informe para el Comité Ejecutivo sobre la factibilidad de reparar uno de los barcos a vapor de la empresa, el Conway, o reemplazarlo por un nuevo barco con motor diesel. Economy Shipping se dedicaba al transporte de carbón desde las minas hasta las industrias consumidoras en el área de Pittsburgh. Todos los barcos de la empresa eran de vapor. Todos tenían por lo menos 10 años de antiguedad y la mayoría tenían entre 15 y 30 años. El Conway tenía 23 años y requería un trabajo de rehabilitación inmediato o su reemplazo. Si se realizaban los trabajos de reparación y matenimiento requeridos, se estimaba que este barco tendría una vida útil de otros 20 años. El valor de libros del Conway era de $ 39.500, pero el Controller estimaba que la compañía no podría cobrar más de $ 25.000 por su venta. Los costos de rehabilitación ascendían a $ 115.000. En dicha rehabilitación, era posible utilizar partes y repuestos de un barco retirado de la actividad en 1948. El valor de libros de estas partes era de 43.500 y su uso reduciría el costo de rehabilitación de $ 115.000 a $ 71.500. Se estimaba que el valor de venta de esas partes en el mercado era de $ 30.000. Las partes no podían usarse para ningún otro barco. Si se decide rehabilitar el Conway, el valor de libros, incluyendo el costo de rehabilitación, será depreciado a fines impositivos en 20 años. El Conway era operado por una tripulación...
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...was estimated to grow 8.5% per annum with graphics projectors having the highest growth potential at 40.2%. United States and Western Europe comprises 88% of the market. Barco’s strength* is with the graphics projectors with a market share of 55%, followed by data projectors with 23% (second to Sony’s 49%). Zooming into Barco’s product line strategy, it segmented markets by scan rates and developed products targeted at addressing the needs of specific segments in the industrial market. It focused on differentiating its products through technology and its sophisticated applications. This created uniqueness for its products and confined competition to a niche segment that is willing to pay premium rates for the quality desired. By 1989, Barco established itself in the entertainment, training and presentation market with three product lines: video, data, and graphics. Barco's projectors had a reputation with dealers for the highest quality final image and excellent reliability once fully installed. And this affirms its technology development, R&D, company’s infrastructure and logistics are its value-creating capabilities to earn high margins. Barco’s BG400 was the...
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...Case Study: Barco Ⅰ. Executive Summary Barco's Projection System met a problem that compared to Sony, BPS was just a small, batch manufacturer so it would be tough for them to repeatedly lower price and meanwhile improve product’s quality. However, the Barco company has always got the good reputation of producing projectors with the most upgraded scan rate. So the key to solve this problem is to keep developing hi-tech product instead of competing Sony with price. Ⅱ. Introduction Barco’s Projection System was the second largest division of Barco N.V. which was a small company and competed successfully in the market on its R&D strength and product quality from 1950s to around 1980s. However, with the rapid development and perfect operational system, Sony became the biggest competitor to BPS. Its 1270 “superdata” projector took the advantage of low price and relative high product quality to beat BPS’s BG400 which made BPS executives shocked and think about redesign their strategy. Ⅲ. Analysis A. Problem Identification The projector 1270 has clear advantages such as scan, brightness, image quality compared with BG400, the product of barco. Meanwhile, the price, as the very important element in the market competition, of the new projector is reported to be quite low. Obviously, a large number of consumers who once belong to BPS will be attracted by the outstanding characteristics and low price of new projector from Sony. Sony is ambitious because their aim is the...
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...Barco-case Barco Background and Strategy Barco Projections Systems (BPS) was the second biggest division of Barco N.V.. The division employed 350 employees and accounted for 23% of Barco N.V.’s total revenue in 1988, which grossed $35 million. The BPS division was formed due to the large growth momentum during the 1980’s in order to pursue the highly opportunistic technology of video projection. Originally, Barco N.V. began as a producer of radio broadcast receivers and over the years the company expanded its product line into broadcast monitors and professional video equipment. It was not until the global recession after the 1977 oil supply crisis, demand and sales for Barco’s consumer products diminished greatly. At this time, the Barco company repositioned its firm during the 1980’s with three clear cut elements that was to shape its vision and strategy. The visions were three fold: Barco committed itself to become an industry leader in distinct, but complementary niche markets; it would create a strong commitment to research and development; and lastly Barco sought to expand its international presence in sales, product development, and production. On the one hand while Barco was establishing its strategic vision for the projection industry, on the other hand the company was redefining its industry as a whole and setting the bar of high end quality projectors. The product line that rolled out from the Barco Projection Systems division were all based on...
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...informe para el comité ejecutivo con respecto a la viabilidad de la reparación de una de las de empresa barcas de vapor o de reemplazar el barco de vapor con un nuevo barco con motor diesel. El envío de la economía de la empresa se dedica principalmente en el transporte de carbón desde el minas cercanas a las fábricas de acero, servicios públicos y otras industrias en el área de Pittsburgh. La de la compañía de varios barcos de vapor también en ocasiones llevan cargas a lugares tan lejanos como Nueva Orleans. Todos los barcos de propiedad de Economía eran generador de vapor. Todos eran por lo menos 10 años de edad, y la mayoría tenían entre 15 y 30 años de edad. El barco de vapor el controlador estaba preocupado sobre el Conway, tenía 23 años y requiere rehabilitación inmediata o sustitución. Se estima que el Conway tenía una vida útil de otros 20 años, siempre que se hagan las reparaciones y el mantenimiento adecuados. El valor en libros de el Conway fue 39.500 dólares, pero el controlador cree que si la compañía vendió el barco en 1950, traería sólo alrededor de $ 25.000. Se estima que los costos de rehabilitación inmediatas para el Conway a ser $ 115.000. El controlador calcula que estos gastos generales de rehabilitación se extenderían la vida útil de la Conway durante unos 20 años. Nuevas piezas de repuesto de otro barco, que se había retirado en 1948, estaban disponibles para su uso en la rehabilitación de la Conway. Si se utilizan estas piezas en el Conway...
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...Barco Projection Systems (A): Worldwide Niche Marketing Case Write-Up – Decision Case – BPS and its Product Line Strategy: Barco N.V originally started as a producer of radio broadcast receivers in 1934 and gradually made its way to the broadcast monitor and professional video equipment markets. After a global recession that followed the 1977 oil supply shock, the company decided to redefine its focus from consumer markets to industrial markets in order to keep its position in the industry. Dejonghe, Claerbout, and Dursin who were responsible for BPS’s R&D, marketing and sales department, worked closely together on projectors throughout the decade. The second largest division of Barco N.V, Barco Projection Systems (BPS) was formed in the early 1980s to enter the video projection market. It played a key role in the development of niche market and BPS had differentiated its products amongst other competitors in the market by its superior projector scan rates. For example, its most sophisticated product – graphic projectors – had “scan rate of 16kHz to above 64kHz, and accepted input from powerful computer-aided design and manufacturing systems, as well as from video and data sources” (page 3). The brand name was established in a variety of entrainment, training and presentation markets. Despite its 4% low growth rate of worldwide market for graphic projectors, BPS still had most shares in graphics compared to its competitors. BPS’s main competitor – Sony Components and...
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...Barco Projection Systems (A): Worldwide Niche Marketing Case Write-Up – Decision Case – BPS and its Product Line Strategy: Barco N.V originally started as a producer of radio broadcast receivers in 1934 and gradually made its way to the broadcast monitor and professional video equipment markets. After a global recession that followed the 1977 oil supply shock, the company decided to redefine its focus from consumer markets to industrial markets in order to keep its position in the industry. Dejonghe, Claerbout, and Dursin who were responsible for BPS’s R&D, marketing and sales department, worked closely together on projectors throughout the decade. The second largest division of Barco N.V, Barco Projection Systems (BPS) was formed in the early 1980s to enter the video projection market. It played a key role in the development of niche market and BPS had differentiated its products amongst other competitors in the market by its superior projector scan rates. For example, its most sophisticated product – graphic projectors – had “scan rate of 16kHz to above 64kHz, and accepted input from powerful computer-aided design and manufacturing systems, as well as from video and data sources” (page 3). The brand name was established in a variety of entrainment, training and presentation markets. Despite its 4% low growth rate of worldwide market for graphic projectors, BPS still had most shares in graphics compared to its competitors. BPS’s main competitor – Sony Components and...
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...the compatibility with standard video sources, and were scanned at 16kHz. Data projectors were used for displaying input from personal computers as well as video sources, and were scanned at 16kHz to 45kHz. Graphics projectors could accept input from powerful computer-aided design and manufacturing systems, as well as video and data sources, and were scanned at 16kHz to 64kHz. Barco’s first projector was a video projector for showing movies on airplanes. From there Barco developed its projector market share and moved on to more complicated products, which included the use of the projectors with computers. Their intention was to tap on the highly niche high-end market and not the general consumer market for projectors. They focused on research and development to integrate the fast moving technology into their projectors so as to keep up to date. The constant improvement of their technology was essential and their final aim for the development of projectors was the digitally controlled projector market. Barco also aims to have the first mover advantage in their products. They aim to release their high performance products into the market as the innovator of the product, thereby selling it for a premium. Upon competition arriving, they would then move on to products of a even higher calibre. They do not intend to enter into price wars with competitors as they feel that they have nothing to gain from it and in most...
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...Company: Barco Projection System Industry: Projector Systems In the late 1970’s, BPS moved from producing radio broadcast receivers to the market of projectors based on a clear vision which market they could serve better and focused on research & development to come up with top quality product and launched several activities aimed at global expansion. As a result, BPS was the market leader in high end graphic projectors because of technologically superior quality. But in 1989, Sony introduced 1270 Superdata Projector at the Siggraph trade show in Boston and won the first place in Highest Performing Projector category from BPS’ BG400, much to the surprise of Barco. 1270 was also price about 20-40% lower than Barco’s projectors. This put BPS under pressure to sustain the attack from a giant company such as Sony and come up with measures to counter attack. 1. How serious a threat is the Sony 1270? Though Sony was one of the top competitors to Barco, Barco did not expect Sony to come up with a product such as 1270 and it was caught off guard. Barco’s assumption that Sony concentrated mainly on basic projects and didn’t want to invest in R&D for high end projectors proved to be wrong. Moreover Sony supplied one of the important component to BPS’s projectors, tubes. Therefore, BPS has to reply on Sony for tubes until they find other comparable suppliers. Sony could easily stop supplying tubes to BPS and cut down its sales...
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...For exclusive use Great Lakes Institute of Management (GLIM), 2015 9-591-133 REV: MAY 9, 2002 ROWLAND T. MORIARTY Barco Projection Systems (A): Worldwide Niche Marketing On Saturday morning, September 23, 1989, Erik Dejonghe, Frans Claerbout, and Bernard Dursin were drafting a crucial presentation that Dejonghe was scheduled to make to the Barco N.V. board of directors on Monday. As senior vice president and chief operating officer (COO) of Barco N.V., with responsibility for Barco’s Projection Systems Division (BPS), Dejonghe had to respond to a competitor’s recent move that threatened the heart of the division’s sales. Claerbout, the general manager of BPS, and Dursin, in charge of managing Barco’s distribution subsidiaries and coordinating worldwide marketing of projectors, had both worked closely with Dejonghe to formulate the company’s options. One month earlier, the Sony Corporation surprised BPS and the rest of the industry by unveiling its 1270 “superdata” projector at the Siggraph trade show in Boston. At Siggraph, Sony’s product seized first place as the industry’s highest-performing projector from BPS’s BG400. More damaging, the 1270 was rumored to be priced 20% to 40% below the established market price in its performance class. The industry saw the 1270’s positioning as an attempt to widen the market through lower prices. For BPS—a small, batch manufacturer—the 1270’s combination of low price and high performance threatened both to collapse...
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...fue la preparación de un informe para el Comité Ejecutivo respecto a la viabilidad de la reparación de una de las barcas de vapor de la compañía o de reemplazar el barco de vapor con un nuevo barco con motor diesel. Envío de la economía se dedica principalmente al transporte de carbón desde las minas cercanas a las fábricas de acero, servicios públicos y otras industrias en el área de Pittsburgh. La empresa de varios barcos de vapor también en la ocasión transporten cargas a lugares tan lejanos como Nueva Orleans. Todos los barcos propiedad de envío de la economía eran a vapor. Todos eran por lo menos 10 años de edad, y la mayoría tenían entre 15 y 30 años de edad. El barco de vapor el controlador estaba preocupado por el Conway, tenía 23 años y se requiere rehabilitación inmediata o sustitución. Se estima que el Conway tenía una vida útil de 20 años más, siempre que se hagan las reparaciones y el mantenimiento adecuados. El valor contable de la Conway era $ 39.500, pero el controlador cree que si la compañía vendió el barco en 1950, que traería sólo alrededor de $ 25.000. Los costos de rehabilitación inmediatas para el Conway se estiman en $ 115.000. El regulador estima que estos gastos de rehabilitación en general se extenderá la vida útil de la Conway durante unos 20 años. Nuevas piezas de recambio de otro barco, que se había retirado en 1948, estaban disponibles para su uso en la rehabilitación de la Conway. Si se utilizaron estas partes en el Conway, una estimación de su...
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...CASE STUDY: BARCO PROJECTIONS SYSTEMS THE ISSUE Barco Projection Systems (BPS/Barco), a strong player in the Projection Systems business and the market leader in graphic projectors, were taken by surprise by competitor Sony’s offering of a superior graphics projector likely to be launched at a lower price. Barco needs to counter the new model by launching new and superior models quickly and re-pricing existing models. Team A’s rationale takes shape over the following pages. THE MAIN PLAYERS * Barco Projector Systems * Sony 5’ C’s ANALYSIS: Customers / Context / Company / Collaborators and Complementers / Competitors ANALYZING CUSTOMERS Customer for projection systems ranged across industry. Projection systems were used in training rooms and boards, in entertainment centres, in the gaming industry, and in airplanes and flight simulation rooms. Customers were sourced from a wide cross-section of industries. So the customer pool was huge, but also demanding. The products needed to keep up with constant improvements in computer and video technology. Customers typically bought a new projector every 5 years, and purchased more performance than needed because of the ever increasing computer scan rates. Focus needed to be on delighting customers and providing good after sales support because the repeat customers were important – for replacements every 5 years but more importantly as these customers expanded their...
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...Economía Shipping Company Se recomienda Economía Shipping Company (ESC) sustituir el barco de vapor, Cynthia, con un barco nuevo motor diesel. El análisis supone que no hay costos de operación en 1950 A pesar de ESC fue presumiblemente aún en servicio durante este análisis, los costos asociados con la evaluación del proyecto no han sido valoradas hasta 1951 fue también implícita en los cálculos de VAN que cualquier actualización necesaria posterior a 1950 podría ser realizado sin ninguna interrupción a las operaciones diarias y se realizaron a principios de año. Por lo tanto, la actualización fogonero y los reemplazos de motor fueron considerados en 01 de enero del año previsto y no requieren ningún tiempo de inactividad de la instalación.La evaluación consideró cuatro escenarios diferentes: 1. Rehabilitación de Cynthia con la conversión fogonero que ocurre en 1950 2.Rehabilitación de Cynthia con la conversión fogonero que ocurre en1952 3. La compra de un nuevo barco de motor diesel con 2 turnos de 12 horas día de trabajo 4. La compra de un nuevo barco de motor diesel con 3 turnos, de 8 horas de trabajo días Desde ESC estaba considerando otros proyectos con una tasa de retorno de 10%, cada una de las opciones anteriores se consideraron utilizando la misma tasa de retorno. La compañía? S balance sugiere que la gestión era muy conservadora. La relación deuda-capital en 1950 fue de 0.075, lo que indica que la compañía podría pedir prestado a una tasa que va del 3% y sin temor a la...
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