Barco Case Essay

1068 Words5 Pages
I. Executive summary Business challenge. Barco, with a development of more than 50 years, has grown from a radio broadcast receivers to a top three worldwide manufactures of broadcast monitors and professional video equipment. Barco Protection System (BPS), which was the second-largest division of Barco N.V., represented 23% of Barco N.V.’s turnover. In 1989, the case outlines two basic business challenges that must be addressed in sequence: 1. Determine the price accurately in order to deal with the loss of consumer attracted by Sony's new model-the 1270. 2. Creating a new product strategy to compete with the high performance of Sony's 1270. Strategy Recommendation. Although Sony's products have advantage in term of price, the research suggests that this element is powerful but not sufficient to compete with Barco's products which have better performance. In order to segment the market with Barco, Sony introduced the new graphic projector 1270 which had a better performance and shocked Barco. We believe a plan associates with pricing and product strategy in order to deal with the loss of consumer. Since Barco cannot win price war against Sony, it is more safely and comprehensively to make fix a price after Sony gives their price of 1270. Creating a better performance product would be another essential factor which helps Barco to continue original sales. However, since Sony would introduce product earlier, it was for sure that Barco stand in a more passive place in this competition. II. Introduction In 1989 Barco N.V. was one of the top three worldwide manufactures of broadcast monitors and professional video equipment, Barco Protection System (BPS) was the second-largest division of Barco N.V., with 350 employees, and turnover of 1.39 billion Belgian Francs. It represented 23% of Barco N.V.’s turnover. Sony competed with Barco in the data and graphics
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