barco projection system

OUR TEAM:

RITESH KUMAR RAJAT KHARE RAJWINDER KAUR RAJKISHOR SMRITI PANDEY HARE KRISHNA OUR TEAM

Introduction :

Barco Projection System(BPS) was the second largest division of B arco N.V. It had 350 employees and turnover of 1.39 billion Belgian francs, headquatered in Belgium. It represented 23% of Barco N.V.’s turnover. Introduction

History : Barco N.V.:

BARCO N.V. started in 1934 as a producer of radio broadcast receiver. In 1948 it manufactured its television receiver. From 1955 to 1975 they grow rapidly, expanding into broadcast monitors and professional video equipment. In 1989 BARCO N.V. was one of the top three worldwide manufacturers in each of its product lines. Company won many international awards. History : Barco N.V.

Strategies:

Throughout 1980s company’s strategy comprised three main elements: To become leader of niche markets. Strong commitment to R&D. To expand its international presence in sales , product development and production. Strategies

Management :

CEO Barco group COO Barco group General manager General manager Other divisions BPS BPS international of Barco Product Operational Marketing and sales Development manager 3 regional Manager Marketing managers Management

Products :

BPS had developed three lines of projectors: Video projector Data projector Graphics projector Products

Evolution of product lines:

In 1981 BPS developed Barcovision1(BV1), first video projector. In 1983 BPS introduced Barcdata1(BD1) first computer compatible projector. In 1984 BPS launched BV2 and BD2 with higher scanning rates. In 1987 BPS launched its first graphics projector BG400. Evolution of product lines

Evolution of markets:

Management suggested three directions to find out new markets: Downgrade technology to suit consumer video applications. Upgrade technology for long distance, high performance video projection. Entrance in untested market for computer applications. Evolution of markets

Growth rates for products and markets:

Product segment growth 1988(% units) predicted annual growth 1989-1994 Video 63% .8% Data 33% 12.3% Graphics 4% 40.2% Geographic segment growth 1988(% units) predicted annual growth 1989-1994 United states 50% 9.0% Western Europe 36% 11.5% Asia 12% 18.0% Growth rates for products and markets

Distribution System:

In 1989 BPs adopted two-step distribution system. Division had 45 distributors and approximately 400 dealers worldwide Dealers carrying barco projectors ranged from *box* dealers to system dealers. Distribution System

Competetors:

In 1989 BPS competed with three companies in the data and graphics segments: Sony, Electrohome and NEC. Other small competitors Panasonic, General electric. Market share of major competitors in 1988(as total units sold): Competetors Region Projector type Barco Sony E.H. NEC Others Europe Data 35 35 8 6 16 Graphics 55 -- 43 -- 2 North America Data 16 62 14 8 -- Graphics 60 -- 40 -- -- Far east Data 15 30 7 23 25 Graphics 15 -- 80 -- 5 General total Data 23 49 11 9 8 Graphics 55 -- 44 8 8

Competitors cont.:

Sony: It entered in industrial projection in 1985 with its 1020 video projectors which was quite slower than Barco . BPS was totally dependent upon Sony’s tube division. Electrohome : It was Canadian based electric manufacturer mainly operating in data and graphics segments. It was BPS’s largest competitor in graphics. Generally their products were priced below BPS. NEC: It was Japnese based company dealing in video and data projectors. Due to their inefficiency in distribution network their sales could not reach upto the expectations. They had 4% hold on video market and 9% on data . Competitors cont.

Problems::

Highly dependent upon Sony’s tubes. Sony’s introduction of new graphic projector-1270. Sony was targeting on BPS’s core markets- U.S and Europe. Dilemma of how to set the prices of existing BPS’s projectors in response to 1270. Problems:

Options::

Decrease the prices of existing projectors. Develop a competitive projector. Options:

Our suggestion::

Lowering prices: 1. Barco cannot win price war against Sony 2. company has to bear huge looses. New competitive projector: 1. Division’s engineer’s have ability to develop a new projector to match 1270. 2. Sony assured BPS to supply 8” tube. So division should develop new projector to sustain its position and market share in the market. Our suggestion: