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products in a niche market. It focuses on the graphic projector, projector market has the
greatest growth and income.
Barco's market share of 4%, a video projector, 23% and 55% of the data projector graphics
projector.
Barco's main competitors, Sony, Electrohome and NEC.
In my opinion, scrap the BD700 and star new "high-end" projector is the smarter choice. His
strongest competitor, Sony develops a new product 1270 "super data" projector and trade
show in the Boston. It is a high-performance graphics applications and low price. From the
Table A Product Segment Growth, 1988, we can find that Graphics predicted annual growth,
1989-1994 were 40.2% from 1988 4% units. Data only grows 12.3% from 1988 33% units.
Its mean graphics' market growth is more than Data's market growth. The BD700 is
BarcoData700. Data's market is growing slowly. That means new product BD700 is fail
product and fail in the market. That's why I agree scrap the BD700. I will show more analyze
in my product life cycle. And BG400 (BarcoGraphics400) is old model. If 1270 go in the
market, BG400 will be kick-off from the market, because BG400 is the high price and low
benefit product when 1270 come in. To star new "high-end" projector it is the smarter
choice. Barco can develop new-product like as BG800 or upgrading BG700. In the Niche
marketing, Barco need to keep pursuing top of the line in the "high-end" niche market and
declining the prices, and Barco can win back the competitive edgy.
Mission Statement
High quality, high technology, popular, and five stars customers' service, are all in ours'
product.
Positioning
New "high-end" products are very important for Barco, it's positioning on the high-
performance graphics applications and middle high price like as BG800. Because Barco's
strong competitor, Sony's 1270 is high-performance graphics applications and low price.
Keeping high technology, appropriate price cut, and doing market research are the good
way for the new-products. The BG800 in type of consumer product is classified the
shopping products. Customer would like to compare these product, features, design, brand
name, quality level, and packaging. The BG800 is the one Barco develop and position for
the "high-end" products.
SWOT
Analyzing the Barco's superiority from the case, it's show that Barco has two big markets:
the United States and Western Europe. From the Table B Geographic Segment Growth,
Barco has 50% units in the United States and 36% units in the Western Europe 1988 and
the predicted annual growth of each are 9% and 11.5% from 1989 to 1994. And the
weakness part is the relationship with dealer. Barco hasn't the system dealer who know-how
of integrate and install equipment packages. From the Table D BPS's Pricing Index, BPS
has 41% direct cost and 59% gross margin, and this is the high margin. Existing dealers
liked to sell BPS's products. But BPS's product is complexity. "In 1989, few dealers could
survive without the Sony volume; an estimated 80% to 90% of professional audiovisual
dealers worldwide Sony products because of reliability and low price among dealers" (p.
244). Sony has a lot of dealers and good for his product selling. The opportunity of Barco's
products are high technology and famous brand in the worldwide of projectors. Barco can
develop "high-end" product BG800 or upgrading BG700. The threat is Barco need to scrap
BD700 production. It means they lose a lot of money and need more time for the new "high-
end" product development. And they will lose a lot of market share from their competitors. If
the BG800 are not fit in the market, Barco will lose and never come back.