A CASE ANALYSIS OF BARCO PROJECTION SYSTEMS NEW PRODUCT CREATION, PRICING AND MARKETING STRATEGY
Nao Projection Systems faces challenging to its market prominence by the intro by a compete with, Sony, of the product of purportedly greater quality than BPS offerings, at a cheaper price. BPS faces a situation on how to respond to Sony's introduction of the 1270 projector in to the high performance projected market, at prices that will threaten BPS's hold through the its complete niche market segmentation.
BPS also offers to address the perfect product development way for its new releases, reexamine its marketing emphasis and organization perception, reexamine its production integration procedures, market pricing strategies and overall conform to a new competitive reality in the market.
Sony Corporation surprised BPS by unveiling the 1270 very data projector at the Siggraph trade demonstrate in an attempt to prevent a competitive response by simply BPS and the rest of the sector. The 1270 was designed to take on BPS's maximum performing projector on the market (BG400) and is reportedly priced at a variety that would weaken BPS business of the high end projector marketplace and affect the wider industry at large. BPS also faces questions about its geographical market emphasis, its vertical integration approach, its marketplace brand perception and its pricing strategy rather than Sony's product.
The introduction of Sony's 1270 presents the most important challenge to BPS in its company history since the 1977 oil source shock and revealed natural flaws inside the company web marketing strategy, consumer perspective, manufacturing processes and pricing strategy. BPS has to interact to Sony in order to save its market share but also has to address long term issues that possess being revealed by the challenge from Fiat.
We need to initially address the short term effects of the intro of the 1270 and BPS's response to it. The fact that BPS needs to respond to Sony's product inspite of having close association for the manufacturing adjustable rate mortgage of Volvo, shows a dearth of market consciousness and anticipatory skills by BPS, which is partly due to BPS concentrate on product evolution rather than industry need.
You will discover 3 alternatives being considered by BPS in response to Sony and by analyzing these scenarios using tools just like SWOT analysis, come up with the very least damaging scenario for BPS to undertake.
BPS could continue its advancement schedule as planned, introduce the BD700 on time in October to get immediate creation and delivery
We leaped a SWOT analysis from the strategy to determine the strengths and weaknesses of the strategies and, identify any possible opportunities or threats that could come up as a result of the strategy
вЂў The potential advantages of taking on this strategy control mainly from BPS satisfying a small section of their existing customer base that had pre ordered the BD700 output system and would get them without delay.
вЂў There were also the boost to its engineers' morale that on time production and delivery of the BD700 would have caused.
вЂў The on time discharge of the BD 700 might have had a adverse quantitative effect to BPS's bottom line because BD700 was inferior towards the Sony 1270 and could not have beaten the 1270 at the Infocomm show of January 1990.
вЂў This would have eroded substantially the projected 1990 revenue of the BD700 as they were deduced on the non existence then with the 1270.
вЂў When the 1270 steals the very best spot with the Infocomm display, as believed, BD 700 would be thought to be an expensive obsolete part of technology.
вЂў The focus on releasing the BD700 will also inhibit the development of products as the organization focuses on fulfilling preexisting orders.
вЂў A customer services boost because BPS displays existing clients it likes you timetables, delivery et al.