Sony Vs. Barco Essay

783 WordsFeb 2, 20124 Pages
As implied in the question and the options, Sony’s 1270 will be able to cater to the data segment. At a price of $8,000, the new introduction from Sony will deliver high performance required by data segment at a low price never seen before. However, in my opinion it will not be able to merge the data segment with either the graphics segment or with the video segment, at least in the short run. The Sony 1270 will not be able to merge the video segment because of three reasons. First, its selling price of $8,000 is higher than the $5,000-$7,000 range that the consumers in the video segment are used to. Video projectors are becoming a commodity product. Customers in this segment mostly use the projector for broadcast TV and VCR and the scan rate required for those applications do not exceed 16kHz. It is not likely for those customers to pay 15-20% more for features they do not need. Secondly, the distribution channel in the video segment plays to the product’s disadvantage. Sony 1270 is a very advance product with a lot of great features even for the data segment and it is not unreasonable to assume that this product is significantly more complicate to operate than the average video projectors. Box dealers, who provide no service or expertise, will not be able to properly communicate the benefits of this product to the customers. Also, dealers hope to generate volume from the video projectors and make margin from the higher end products. They would prefer to sell commodity products that simple specifications and price speak for themselves. Thirdly, it is unlikely for Sony to heavily promote the 1270 in this segment. Sony is already the market leader in the saturated video segment, which has minimal growth. It is questionable whether the 1270 will be able to capture extra sales without cannibalizing its current products in this segment. Because of the higher price,

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