Barco Projection Systems (a): Worldwide Niche Marketing Essay

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Q1. What are the key differences between Sony's and Bacro's strategies as far as their product roll out is concerned prior to Aug 1989 in the projector market (that is, you need to compare and contrast the chronological order and the scan rate/prices/other features of the models that both players introduced in the market prior to Aug 1989)? Why is it that both players were playing such different strategies prior to Aug 1989?

Barco launched its first projector BV1 (scan rate of 16 kHz & priced at $11,250) in video segment in 1982. But soon Barco decided to enter the computer applications market and by the end of 1983 launched BD1 (scan rate of 16 to 18 kHz & priced at $13,500) in data segment. In 1984 Barco introduced two more projectors
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Sony's marketing strategy was to make use of its worldwide network of captive commercial video distributors which in turn worked with more than 1,500 dealers across the globe. Also Sony's strategy was to make use of brand name recognition which had a reputation of reliability and low price among dealers. Sony also took advantage of the fact that Barco was purchasing tubes from Sony Components. In some cases Sony's strategy was to be better off than Barco in terms of latest developments related to tubes with in-house supplier. Internal efficiencies were created from Sony Components – Sony projectors would know about new tubes before competitors and thus be able to design for new tubes immediately. This resulted in supply chain efficiencies of being more responsive to demand, and not carrying high inventories.

Q2. Consider a hypothetical case where Sony was to charge $9,000 for its new 1270 ‘super data' projector (assuming that 1270's marginal cost is much lesser than $9000). Do you think that Sony can merge the data and the video segments (in other words, it will attract a good chunk of customers, typically >30-40% of the share, in each of the two segments) if it was to charge the $9,000 price for 1270? Give reasons for your answer. Next, consider the hypothetical case where Sony was to charge $15,000 for the 1270 projector. Do you think Sony would be able to merge the data and the graphics segments if it was to charge
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