1. How large is the projector market in unit terms?
According to the case, Barco Projection Systems (“Barco”) sold 4,400 units comprised of video, data, and graphic projectors. Barco held various market shares in each segment identified in Table C of the case. Using the information on percent units, we calculated total units for each segment and applied them to the respective Barco market shares to find that the total projector market in unit terms was 30,349 in 1988. A detailed breakdown of sales and total market units is shown in the following table (including calculation explanations in red):
Projector | % Units | Units | Barco Market Share | Total Units |
Video | 35% | 1,540 | 8% | 19,250 |
Data | 53% | 2,332 | 23% | 10,139 |
Graphics | 12% | 528 | 55% | 960 |
Total | 100% | 4,400 | 14% | 30,349 |
Explanation | Table C | 4,400 * % Units | Table C | Units / Barco MKT Share |
2. Describe Barco’s product line evolution over time – focus on the time when different products in the line were introduced and upgraded. Most of this information is available in the Exhibit. Pay close attention to which segment’s products were being introduced over time.
A detailed timeline of Barco’s product evolution is provided in Exhibit 4 of the case. The video segment was the first developed, when in 1982 Barco came out with the BV1. This was followed in 1984 by the BV2, which allowed for a scan range rate of 16 to 18 kilohertz (kHz), versus only 16 kHz of its predecessor. Interest in the video segment was delayed until 1987-1989 when each year saw the introduction of the BD400, BV600, and BD600S, respectively. All products released from 1987-1989 delivered 16 kHz scan rate.
The data segment was second to evolve and was created from the original BV1. In 1983, the BD1 was introduced, and then succeeded in 1984 with the BD2, which increased scan rate range to 16-25 kHz, and then the BD2D which pushed the scan rate range up to 16-32 kHz. In 1985, the BD3...