Post Graduate Programme in Management

Barco Projection Systems(A): Worldwide Niche

Marketing
25TH JULY 2014

MARKETING - I
TERM I
Course instructor: Prof. Manoj Motiani

Submitted by:

Group 3, Section H
Name
Swati Rao
Ramasubramaniyam S
Parag Autkar
Mathan Kumaran
Chayanika Agrawal
Amit Kr Rath
Amit Agarwal

Roll no.
2014PGP392
2014PGP291
2014PGP072
2014PGP196
2014PGP092
IPM2011013
2014PGP031

Background:
Barco projection systems is the second largest division of Barco N.V. with a turnover of $35 mn in
1988. It designs, manufactures and markets sophisticated video projectors for industrial
applications. Barco N.V. began in 1934 as a producer of radio broadcast receivers and is now the
acknowledged technological leader in the high end.
Vision & Mission:
To sustain as a market leader with a focus on top-of-the-line products in niche markets of industrial
projection systems with a commitment to research and development.

Strengths:

Established leader in the market of variety of entertainment training and

presentation market.
Traditional strength in electronics
Has pursued more specialized markets such as process control and simultation
where data and graphic prohjectors are used
Has dealer reputation in the highest quality final image and excellent reliability once
fully installed
Ability to continuously upgrade the scan rates to match the advances in computer
technologies
Dealers preference to sell Barco products since they earn higher margins

Weaknesses:

Inability to anticipate competitors moves.

Complaints regarding unnnecessary complications in machines, control panels and
instructions.
Limited distribution systems compared to Sony
Dependency on external supplier for tubes

Opportunities:

Reducing prices of graphic projectors in France and Germany to reduce market

pressure on Barco
Reducing complexity of control panels and instructions to make it user friendly
To expand distribution in North America and Far east regions where data and
Graphic projector market is already present

Threats:

Better and highest performing projector unvelied by Sony

Competitor Sony is entering graphic projector market
Supply of tubes might be freezed due to dependency on Sony which is a competitor
Competitive pricing by Sony(20-40% lower Barco products)

Applying the Porters five forces analysis:

Supplier Power: Possibility of freezing of supply of tubes by Sony since it has turned into a
competitor in the graphic projector market. Limitation of special lens supply by the tradition
supplier. No assurance o receiving a better lens from a competitive Japanese firm.
Buyer Power: Customer attraction towards Sony 1270 superdata projector which has better
performance and cheaper price could lead to decline in market share. Estimated reduction in profits
is 75%.
Threat of New entry: The threat of a new entrant is high because of presence of suppliers and
existant companies and no apparent entry barrier.
Threat of substitution: Continuous technological advancements and presence of active market
players present possible threat of substitution
Competitive rivalry: Faces stiff competion from Sony and ElectroHome in major markets like Europe
and North America in Data and Graphic projectors

Strategy:
Conclusion: