BARCO’S INTRODUCTION PRODUCT LINE STRATEGY BARCO MEANING OF STATEMENT DECISION OF SONY ON REJECTION OF BARCOS DECISION SONY’S OBJECTIVES MISTAKES BY BARCO BARCO’S NEXT STEP TOWARDS PRICE & PRODUCT DEVELOPMENT PLAN ?

1. BARCO PROJECTION SYSTEM(A)
Taranum.Mohammed:S17MMMMM00811
Satyabrata Lenka:S17MMMMM00698
Arjun Kumar Kovver: S17MMMMM00668
Arun Kumar Malle: S17MMMMM00715
R V Chakravarthy: S17MMMMM0076

2. AGENDA
• BARCO’S INTRODUCTION
• PRODUCT LINE STRATEGY BARCO
• MEANING OF STATEMENT
• DECISION OF SONY ON REJECTION OF BARCOS
DECISION
• SONY’S OBJECTIVES
• MISTAKES BY BARCO
• BARCO’S NEXT STEP TOWARDS PRICE &
PRODUCT DEVLOPEMENT PLAN ?

3. BPS INTRODUCTION
• STARTED IN 1948
• 1955-1975 PROFESSIONAL VIDEO EQUIPMENT
• 1970 ENTERED INDUSTRIES
• 3 objectives of BPS.
1. Leader of variety – niche market . Be the top-3 manufacturers.
2. 8-10% annual turn over & 15% of the employees all invested in
the R&D .
3. In addition to the business growth to expand it’s international
presence in production & Development.
Achievements of BPS:
• 1988- International EMMY Award for studio monitoring.
• HI-VI Silver award in JAPAN.

4. Product Line Strategy BPS
• It made sure that it served the NICHE
market was best in what ever it
served.
• In the product line of BPS you will
find that year after year it launched
the products in such a way that they
served the client purpose and also
made sure that the projected profits
are met.
• It had three options
1. It could downgrade its technology
to consumer video application .
2. Upgrade to high performance video
projection.
3. Enter the untested market of
computer application.

5. PRODUCT LINE STARTEGY BPS
They wanted to reverse the ratio of there 80% TV sales &
20% of projector sales in early 80’s.
The strategy of first entering the Video & Data and later
they started working on Graphics.
Sep 1989 they wanted launch the digitally controlled
projectors till then which were controlled manually.
Product line was expected to have the below three:
1. The constant search of best possible image
2. Flexibility towards inputs
3. User friendliness.

6. “All our Projections how ever are
based on assumption that Sony would
respect our vision of the market
place”- bY Dejonghe’s
• This means that BPS feels that their regular
business which is 1/5th of sony component’s
projector tube business given through BPS.
• Sony told this to Dejonghe that their ultimate
goal is to be 50% in industrial supplier and 50% a
consumer supplier not to beat Barco projection.
• The major tubes required for all the projections
of BARCO were procured from SONY.
• Barco was the only competition with whom SONY
made substantial money.

7. When does competitor accept
another’s vision of the market?
• Barco was the only competition with whom SONY
made substantial money.
• This happened when both the competitors have
fairly understood that they can grow together
when they respect each others vision.
• Other reason could be when the production of
one brand is been run from the other brand .
• Like sony’s production cost goes down because of
the purchase of tubes done by BPS which is 1/5th
of the production .

8. Why did SONY decide to reject BARCOS
vision of the market in Aug 1989?
• In Feb 1989 Sony components contacted BPS for Square
8” tube which is not similar to the rectangular 7”
regularly used in the projector.
• The Engineers started running the tests how ever
decided against the idea as that would add up to the
extra cost redesigning the shape of the projector chassis
and sourcing new lens to match.
• This gave sony a clear vision of the limitations of
BARCOS which could surely be taken as an asset for
SONY to capture the complete market and become the
mass producer of the low end products.

9. How serious a threat is SONY 1270?
What are it’s objectives?
• SONY 1270 is a super data
projector with a power to scan
75KHZ, placing high
performance graphics
applications using 8” SONY
tube which gave higher marks
than the BG400 in brightness
& image quality and
resolution.
• All these above were not met
by BPS till date.
• Its a serious threat to BPS as it
shall take away 75% profits
forecasted in 1990.
Objectives of SONY :
• To kick off pre view in U.S
market first.
• Planned the largest- ever
publicity campaign in
industrial projection history.
• It is very clear that they don’t
want to compete with BPS or
Electrohome.
• Their objective is re conquer
both Data & graphics market.

10. Mistake BARCO /things like this
happen in technology business on
global scale
• Mistake by BARCO was that it was dependant on it’s competitor for
the tubes and made sure it had 5 months in advance all things lined
up for production.
• Here the competitor did know all about the company and it’s
limitations of production of tubes.
• When BARCO had the R&D rigorously working on the future
projects but they didn’t take the possibility of SONY launching
something like this when they gave them 8” tubes for trail.
• The only thing we have to do in the market to survive is be the best
in what your doing and keep evaluating the way they did earlier in
BARCOS from the start.
• Yes things like this happen in global scale in fact every brand or
company would like to conquer the total market.

11. Steps for Price & Development plans
• Barcos should not do anything related to price till the
time SONY doesn’t launch it’s price in the market.
• The pricing of Sony lesser was just a rumour nothing
was substantially announced by SONY.
• Barcos has to wait till Nov for the launch of SONY price.
• The price reduction of BARCOS keeping the rumours
would be like loosing the profit share.
• R&D 8-10% annual turn over should be increased to
another 5% & also increase the number of employees
working on the BG800 and finish it by the 1990
INFOCOMM show in Jan 1990.

12. Conclusion by Team
• BARCOS has to wait till the price launch of
SONY and then substantially decide about the
price .
• In the interim the R&D budget to be increased
by 5% both in costing & employee count.
• Ensure that the BD-800 being launched should
meet somewhere near to SONY 1270 in
specifications.