Barco Output Systems Case

 Barco Output Systems Circumstance Essay

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REV: MAY on the lookout for, 2002

ROWLAND T. MORIARTY

Barco Output Systems (A): Worldwide Niche

Marketing

About Saturday morning hours, September twenty three, 1989, Erik Dejonghe, Frans Claerbout, and Bernard Dursin were composing a crucial display that Dejonghe was planned to make for the Barco N. V. table of company directors on Monday. As mature vice president and chief working officer (COO) of Navio N. Sixth is v., with responsibility for Barco's Projection Devices Division (BPS), Dejonghe had to respond to a competitor's the latest move that threatened the heart from the division's revenue. Claerbout, the overall manager of BPS, and Dursin, in charge of managing Barco's distribution subsidiaries and complementing worldwide marketing of projectors, had both worked tightly with Dejonghe to formulate the company's options.

One month earlier, the Sony Corporation amazed BPS and the rest of the market by unveiling its 1270 " superdata” projector at the Siggraph control show in Boston. In Siggraph, Sony's product seized first place while the industry's highest-performing projected from BPS's BG400. More damaging, the 1270 was rumored to become priced 20% to 40% below the founded market price in the performance category. The market saw the 1270's positioning as an effort to expand the market through lower prices. For BPS—a small , batch manufacturer—the 1270's mix of low price and high performance insecure both to collapse its traditional market segmentation and drop prices to untenable levels. Dejonghe approximated that BPS stood to lose as much as 75% of the forecast 1990 profits.

The 1270 advantages had been timed to prevent competitive response; the industry's most crucial trade demonstrate, Infocomm, was scheduled to happen in the United States in January 1990. Major customers, industry analysts, and dealers would be presently there, and BPS's performance could determine it is sales throughout the year.

Barco's Projection Systems Division

Barco Projection Systems (BPS) was the second-largest label of Barco D. V., with 350 workers, and proceeds of 1. 39 billion Bfr ($35 million)1 in 1988 (Exhibit 1). Based in Athens, the

1For this case, 1 U. T. dollar is equal to 45 Belgian francs (Bfr). Some of the value in the dollar was extremely volatile during

the time covered.

________________________________________________________________________________________________________________ Research Associate Krista McQuade prepared this situatio under the guidance of Teacher Rowland Capital t. Moriarty. HBS cases happen to be developed only as the basis for discussion in the classroom. Cases aren't intended to function as endorsements, sources of primary data, or pictures of successful or useless management. Famous information have been condensed. This version of the case was revised by Teacher Benson G. Shapiro. Copyright laws © 1991 President and Fellows of Harvard College or university. To order copies or request permission to replicate materials, call 1-800-545-7685, publish Harvard Business School Posting, Boston, MOTHER 02163, or go to http://www.hbsp.harvard.edu. No part of this distribution may be produced, stored in a retrieval program, used in a spreadsheet, or perhaps transmitted in different form or by virtually any means—electronic, physical, photocopying, recording, or otherwise—without the authorization of Harvard Business University.

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Nao Projection Systems (A): Throughout the world Niche Marketing

split had been shaped in the early 1980s to pursue the emerging technology of online video projection. The division experienced grown swiftly throughout the eighties. In 1988 it represented 23% of Navio N. Versus. 's yield

Background: Nao N. Sixth is v.

Barco In. V. started out in 1934 as a maker of a radio station broadcast receivers. In 1948, it created its initial television receiver, and starting from then on consumer TELEVISION SET formed the bulk of its revenue. As a small company, Barco competed successfully by carving out a market on such basis as its R& D power and merchandise quality. From 1955 to 1975, the business grew speedily, expanding in...

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