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Barco System Case Analysis

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BARCO Case Write-up
Given the case scenario, the three development options available for BARCO are:-
  A. Continue development   and launch of BD700 as planned
Pros:   * First-digital projector with remote control   * Confirmed order from customers   * R&D complete(127 person months) | Cons:   * Lower specs compared to Sony 1270 |
  B. Develop and launch BG700 based on BD700 platform
Pros:   * New product could be launched in 2-3 months competing with Sony 1270   in graphic segment based on higher scan rate | Cons:   * Lower performance of 7” compared to 8” tubes   * Delay in delivery of BD700, lower customer and engineer morale   * High Cannibalization of BG400 |
  C. Re-allocate R&D team to develop BG800
Pros:   * Better specs compared to Sony1270 (90kHz compared to 75 resp.)   * Same high quality 8” tube as Sony1270 | Cons:     * Require at least 80 person months   * Uncertainty regarding supplier for 8” tube   * only 40% chance of meeting Infocomm deadline |

Based on the cons presented above for options B&C, BARCO should maintain a status-quo in response to the launch of Sony 1270 and go with option A. This is because of the following reasons:
  * While the specs of Sony 1270 compete with BARCOs flagship graphic projector BG400, it is being aimed at the data segment. This will confuse consumers as the applications and input devices are very different.
  * Given Sony’s image as a mass producers of low-end products in the projector segment, customers will be unwilling to invest in an untested expensive product.
  * BARCO’s can capitalize on its reliability and brand image as market innovator in the niche sector , and offer customers the added feature of digital controls   in BD700 which will greatly enhance user-friendliness. It is also a POD in vis-à-vis sony 1270.
  * Sony’s dealers are mostly box dealers who don’t specialize in aftersales service which is necessary for the data and graphic segment. This is BARCO’s major...

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