Case Study: Barco Projection System

1253 WordsJan 23, 20076 Pages
Case Analysis of Barco Projection System: Worldwide Niche Marketing Introduction Barco N.V. was established in 1934 as a producer of radio broadcast receivers. At the end of 1970's, facing the economic recession owing to oil supply shock, the company altered its market strategy from consumer market to industrial niche market of projectors. This decision was based on firm and clear vision that Barco knew which market it had to serve. Pursuing top-of-the-line in the high-end niche market, Barco focused on R&D to retain the top quality and launched series of international expansion activities. The strategy of the most advanced player in the niche market resulted in years of its market leadership in graphic projector sector of high-end…show more content…
To market its projectors well, BPS needed to have system dealers that had the know-how of integrate and install equipment packages. Because of high margin, the existing dealers liked to sell BPS's projects but the intentional product complexity prohibited the expansion of distribution channel. In terms of volume, dealers did higher volume with Sony – 80% to 90% of professional audiovisual dealers worldwide Sony products because of reliability and low price among dealers. How to win back the competitive edgy BPS lost its competitive edgy because it relied on the enemy – supplied by Sony – although these situations had been happening to other companies and it misjudged the market change based on the wrong assumptions including Sony's product development plan. Its strategy heavily relied on its advancement of product quality, but with the advent of Sony's 1270, the map of the high-end projector market had to be redrawn. BPS should have more focused on developing innovative products outperforming competitors' products. At this stage, the managers of BPS had to decide which way to go to survive in the market and to win back the market leadership. Lowering prices of existing are not an option to consider. It would cause price war and eventually BPS would be disappeared in the market because BPS, a niche player is not strong

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