Name: - Hardik Ruparelia PG ID:-61510119

Answer 1
BARCO should consider third product development option, which is to switch to the development of
BG800 immediately due to following reasons
Graphic projectors are the future
a) Graphics proectors mar!et is predicted to grow at a pace of "0#$% as compared to data and video
proector mar!ets, which will grow only at &$#'% and 0#8%
() )he space of Graphic proectors is less price sensitive and hence BARCO proection systems, which
has (een following a niche strategy in the mar!et can command price premium
Success in advanced projectors is Critical for BARCO
c) Graphics proectors represent $'% of the total revenues, with a proected growth rate of $*%#
d) BARCO is !nown for premium and advanced products, if it is una(le to launch a superior product in
the mar!et, the (rand value of the company will get impacted
e) +eveloping BG 800 with the scan rate of ,0 !-., will place BARCO way a(ove /ony &$00 1scan rate
0*2h.)
Prevent Sony from getting open field
f) )here is nil chance to fight /ony with price reduction for BG"00, as /ony is a (igger (ehemoth than
BARCO and has deeper poc!ets# /ony can also lead BARCO into a price war game, which would lead
to e3cessive pressure on the sustaina(ility of BARCO#
g) 4aunching BG800 will prevent /ony from getting open field in the Graphics proector mar!et and thus
will help BARCO to remain in (usiness for longer period#
Additive Advantages
h) BARCO also has a distinctive advantage in terms of distri(ution networ!, which it must reali.e (y
launching BG800# /ystem dealers, which ma!e 80% of the BARCO5s distri(ution networ! are
capa(le of install and provide after sales service to high end products as compared to /ony5s
distri(ution system which primarily consist of (o3 dealers
i) After sales service account for 8%6&0% of the dealer5s margin and hence high end products will
increase the profita(ility of dealers and will (oost their morale
) 7ost of the dealers are company owned , After sales service and sale of accessories will improve the
profita(ility and will help to maintain the connect of BARCO with its customers
uture Revenues
!) Customers also tend to replace the proection systems every five years, continuous connect will also
help BARCO to remain in the consideration set for customers in ne3t purchases