Barco Project Systems Analysis

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Although situations like these cannot be eliminated completely, they can definitely be mitigated through actively engaging in research and development. BPS neglected to pursue a more aggressive strategy in innovation.

Recommendation

Going forward, Barco should reduce the price of their BG400 model in the European markets since Sony was already engaged with pre-orders in that region. The distributors in Europe need to maintain a competitive pricing strategy against the 1270 and to mitigate the loss in market share, the price for the BG400 has to be reduced. This strategy makes sense since the North American prices were lower for the same product compared to European market prices.

Barco Projections Systems should also continue with the delivery of its BD700 projectors in October because customers have pre-ordered it a long time ago. Additionally, even if BPS focused all energy in devising a competitive product to match the 1270, it would still not be able to surpass the performance of the 1270 because of the standard 7-inch tubes. Thus, BPS should not cause alarm with current customers by disrupting the delivery of the BD700. Lastly, BPS had invested as many as 180 person-months into the BD700 project and to completely disrupt the schedule would cause more harm than good for the company, both internally and externally.

That being said, BPS should also begin design and manufacture of the BG800 which is a digital upgrade of the BG400. BPS can focus on this project as soon as the BD700 has been ready. The BG800 would incorporate Sony’s 8-inch tube – for which Dojenghe had already received confirmation from Sony. However, BPS would need to source the lens because their current supplier could not match the dimensions. The BG800 project should target surpassing the 1270’s performance in terms of scan-rate, resolution and quality. Despite the fact that the BG800 may not be ready in time for the Infocomm, BPS should continue to design and perfect it so that it may compete with the 1270 in late 1990. Barco Projection Systems will have to play catch-up with Sony, which is still far better than being out of business entirely.