This document discusses Barco and Sony's positions in the projection market. It analyzes their strengths and weaknesses compared to each other. Sony introduced a new high-quality projector, the 1270, which threatened Barco's market share. The document considers how Barco should respond, concluding that lowering prices below Sony's 1270 would be the best option since Barco lacked a direct competitor at that time.

1. Barco Projection Systems
A Case Study by
Brendan Cronin
Belinda DeSousa
Megan Cruz
Patrick McHugo
Mike Wallace
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2. Current Position
• Barco N.V. is one of the top three worldwide manufactures with a focus on
expensive high quality products in a niche market.
• It focuses on graphic projectors, which has the maximum growth and
revenue in the projector market.
• Barco’s market share are as followed:
– 4% in video projectors
– 23% in data projectors
– 55% in graphic projectors
• Major competitors to Barco are Sony, Electrohome, and NEC
• The product that would compete with the Sony 1270 (BG 800) had a 40%
chance of being completed by the Infocomm trade show
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3. Barco’sstrengths and weaknesses as they
relate to Sony.
Barco’s Strengths:
•Barco’s products had a better scan rate than Sony
•Barco’s dealers were 20% box dealers and 80% system
dealers.
•Sony’s dealers were 50% box dealers and 50% system
dealers.

4. Barco’sstrengths and weaknesses as they
relate to Sony.
Sony’s and Barco’s Market Strengths:
•In data projection, Sony held largest % of the market
place.
•In graphics, Barco was number one in the market.
•In terms of performance, Barco ranked higher than
Sony.

5. Barco’sstrengths and weaknesses as they
relate to Sony.
Sony’s Price and Dealer Strengths:
•On average, Sony’s products are priced 15% lower
than Barco’s products.
•Sony’s discount for the final sale: 15%
•Barco’s discount for the final sale: 10%
•Sony’s dealer coverage in U.S: 500
•Barco’s dealer coverage in U.S: 100

6. Barco’sstrengths and weaknesses as they
relate to Sony.
Sony’sDealer Strengths:
•An estimated 80% to 90% of professional audiovisual
dealers worldwide carried Sony video equipment.
•This help build Sony’s reputation for reliability and low
prices among dealers.

7. Barco’sstrengths and weaknesses as they
relate to Sony.
Sony’sSupplier Strengths:
•Sony produced higher quality tubes over Barco’s
supplier Clinton.
•Sony is now Barco’s sole supplier.
•Sony has a new competitive edge over Barco

8. Barco’sstrengths and weaknesses as they
relate to Sony.
Sony’sStrengths:
•Sony released new model, the 1270, which has the
power to scan to 75 kHz and has an 8” Sony tube that
Barco declined to use due to shape.
•Currently, Barco’s highest scan rate offered is 72 kHz.
(Model: BG400)

9. Why Did Sony Introduce the
1270?
Because it could.

10. Sony &Barco
Sony Barco
• Position- Affordable, • Position- High-Quality
Reliable • 20% Box, 80% Systems
• 50% Box, 50% Systems Dealers
Dealers • Relied On Main Competitor
• Develop Component Parts for Necessary Component
• Produced only Data and Parts
Video Projectors • Produced All Projectors,
Controlled 55% of Market
for Graphics Projectors

11. Barco Should’ve Seen it Coming
• 1987- Sony introduced a video projector with
components not made available to Barco
• Barco was Naïve: Believed Sony would respect
the company’s “vision” of the marketplace

12. Timing
• Barco purchased components 5 months in
advance- Halting the production process
• Sony had a working relationship with Barco,
probably would have known they were
working on new projectors
• Introduced with 4 Months until Infocomm
show in Jan. 1990

13. What Would Sony Gain?
• Priced at $15,000, the 1270 would cause
Barco to lose 60% market share to Sony
($307.5 million)
• At this price, the 1270 would also steal
customers from the BD600 ($12,000)
• Sony would ultimately gain the market
position of high-quality

14. How Should Barco Respond to
Sony?
They could:
•Lower the price of BPS to be less than
the 1270
•Develop a competitive projector, the
BG800
•Continue on schedule and complete
the BD700

15. The Best Option
• The best option would be for BPS to lower
their prices less than Sony. That is because
they don’t have a product that can directly
compete with the 1270, so to have their
products priced thousands more than the
1270 would cause them to lose the most
business.