Barco Projection System

Barco Projection System

Summary: This case describes the situations where companies work together by satisfying customer needs under moderately competitive market. A pace of innovation is controlled jointly as the respect of vision. Further this case highlights the scenario when this equilibrium is broken.

Problem Statement:

In late 1989, Barco N.V.'s projection systems division was faced with Sony's surprise introduction of a better graphics projector. Barco had been perceived as a leader, introducing high quality products first and targeting a niche market that was willing to pay a higher price. Barco did not have advanced technology to respond to Sony's new product, the 1270 projector series. The latest offering by Sony promised to be more advanced, claimed superior, unheard of performance and significant cost reduction to the buyers. Sony on this front, had to effect immediate changes in the wake of a significant market share washout and also to hold fort against their rival's antics.

1270 Super data projector of Sony was demonstrated in Siggraph trade show in Boston. The performance of 1270 shocked Barco and the Industry. The projector was capable of handling 75 Khz. With the 8 inch tube it had higher brightness, image quality and resolution. It was also expected to have low price than the market expectations.

Dejonghe expected Sony will keep the pace with the innovation and will not present a new product which is expected later in coming years. When both the rival companies are innovating, companies expect to move as per the vision of each other so that pace is not disturbed.

Sony innovated a new tube type which had much higher capacity but because of diffeernet design it was not compatible with BPS projection system. BPS planned to hold the innovation longer than expected and so Sony proceeded to reject BPS vision.

Yes, their major mistake was to assume that Sony would continue to respect their 'vision' of the market place. They fell into a false sense of security assuming it would not over take them in the market as they were suppliers to them also. Barco should have anticipated and prepared for a new Sony product that would outdo their BG400, especially when there was rumours' circulating.

- Proceed to developing the advanced model the BG 800:

Implementing this measure would entail a considerable allocation of resources and corporate assets. This would yield several benefits to the company. Besides taking out the threat of market annihilation, an effective launch would cement the company's reputation of being ingenuous when it comes to technology. A sound establishment of the new product will also provide a leeway for Barco to diversy on the market segmentation front, by diverting the other leading products to the non-premium