Barco Case Study
Autor: Joshua • January 19, 2018 • 906 Words (4 Pages) • 788 Views
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Pricing of the various units is also of pivotal importance to Barco’s revamped marketing strategy. Barco should hold off on all price changes until the pricing for Sony’s 1270 unit is confirmed. Utilizing this strategy will allow Barco a competitive advantage over Sony, by being able to adjust and drop prices according to the market changes that will occur with the introduction of the 1270 model. Barco will be able to competitively respond by pricing their BD700 unit at a lower price point than the 1270 unit, targeting customers who do not need the higher performance, thereby helping to retain their market share. Additionally, this strategy will also allow Barco to geographically price discriminate, dropping prices only in the countries that necessitate it. These strategies will help Barco maintain the greatest market share possible, minimizing profit loses to combat increased development costs, and ensure competitive pricing across all markets.
In the long run, Barco needs to focus their efforts on continuous reevaluation of the market segments they are targeting. Their goal should be to stay in niche markets to avoid commoditized products. Moving forward, Barco needs to remain in the growth enterprise segment with a specific focus on cutting edge high-end technology.
Throughout Barco’s history, Barco’s management style has been largely reactive, instead of proactive. Management needs to make an effort to proactively seek technological advances in their industry, to increase their competitive edge and avoid the complacency and mistakes of the past. Barco’s management has had myopic vision, being overly trusting of their competitor’s strategy, while failing to simultaneously recognize Sony’s R & D efforts and the compromised position they were in by having to exchange technical and developmental information with Sony Components. Barco needs to adopt the marketing strategies mentioned throughout this paper, in order to retain market share, ensure profit, and to continue to be competitive in their industry.
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