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Barco Nv Group Forming

Essay by   •  January 29, 2019  •  Case Study  •  389 Words (2 Pages)  •  49 Views

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Barco N/V/ began in 1934 as a producer of radio broadcast receivers. The company’s strategy in the 1980’s comprised of three main elements. The first, Barco was a leader in multiple distinct, but complimentary, niche markets. They would only enter a market if they had in-depth knowledge of the market and its technology and if it knew it could be one of the top three competitors in the field. Second, they had a large belief in top notch research and development. Finally, they investigated expanding its international presence in sales, product development, and production.

In 1989, Barco N.V. was one of the top three worldwide manufacturers in each of its product lines; automated production control systems, graphic arts, computer-aided design, and industrial projection. The company focuses on graphic projectors, which have the maximum growth and revenue in the projector market. Barco’s market share are four percent in video projectors, twenty-three percent in data projectors, and fifty-five percent in graphic projectors. Major competitors to Barco are Sony, Electrohome, and NEC. Although NEC was the first company which came up with the idea of applying digital convergence technology on projectors in the market, the inefficient distribution system compromised the success of the company. Electrohome was the biggest competitor of BPS in graphic projectors market, they had the distribution advantage compared to the others, especially its specialized dealers. Despite the great distribution system, Electrohome still owned fewer market shares than BPS.

Then in late August 1989, the Sony corporation surprised BPS and the reason of the industry by unveiling its 1270 “super data” projector at the Siggraph trade show in Boston. Sony’s product grabbed first place as the industry’s highest-performing projector from Barco’s BG400 projector. Even more surprising was that Sony’s projector was to be priced twenty to forty percent below



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