Bacro Projection Systems Summary

Bacro projections is a leader in niche markets for graphic projectors. It has a strong commitment
to R&D and wants to be a global competitor. The organisation production, marketing and sales
functions. It is assumed that they will have finance and human resource departments as well. The
organisation started with video, but slowly shifted to video and graphics. Over a period BPS
became a niche player in graphics segment and started charging premium price. However, Sony
1270 was getting introduced from Sony corporation in graphics segment with better scan rate and
lower price. These details were a rumour spread in market, but an indication to BPS about the
impending threat that is to come from a superior product Sony 1270 for all BPS’s graphic
products.

It can be said that the entry of Sony in the graphic segment came as a shock to BPS. But if one
looks at the growth rates of market segments, then video in which Sony is the leader is growing
the lowest. This is followed by data segment, which is in second position for growth. Leader in
growth is the graphics segment, in which Sony is entering as it is unable to grow in video
segment. Before taking a decision to enter graphics segment, Sony offered the 8inch tube which
could enable in improving the scan rate of machine. Barco after making some tests felt that the
tube is not suitable for its machines. Additional reason for the rejection is that there needs to be a
compatible lense to suit the 8inch tube which was not developed by Barco. The reason could be
that the organisastion was busy in preparing BD700 due to which it never focussed on coming up
with suitable lense.

Barco kept working at BD700 for data segment and was also open to making BG700 for graphics
segment. The deadline for coming up with a new product is yearly Infocomm trade fair that acts
as a platform for all technology products. Now Barco started feeling the heat of market as Sony
was trying to change the dynamics of market, i.e. improving technology thereby reducing price
of products. This is a new rule with which Sony can completely transform the market. BPS
started accusing Sony that it is not respecting BPS’s vision for market. If one carefully looks at
the Exhibit-4, it is BPS which deviated from its work on graphics projectors and spending more
resources on video projectors thereby sending signals that it is interested in giving competition to
Sony. Then the step taken by Sony in terms of launching an effective and efficient product like
Sony 1270 in graphics segment where BPS is the leader is an answer. In market expecting
competitors to respect one’s vision shows naivety of BPS. There is a strong market logic for
Sony to enter a growing segment, one is its video segment is shrinking and graphic segment is
expanding.

Barco’s Internal Problems

The research and development department seems to be leading the organisation till now. This is
being supported from outside by the sales and marketing department. Here the sales department
is more in focus than the marketing. The complaints or suggestions that came from consumers
and the dealers have gone in deaf ears. This is largely due to product focus of the organisation
driven by scientists, who measure their success based on the award they receive for their
products.
If the marketing department was active, then it would have collected and taken the feedback to
the R&D and made them change their views.
The other departments like finance and human resource development do not come into picture
much as till now the organisation has not faced a major crisis.

The production department was an extension of the R&D due to which they too might have been
discouraged from giving any suggestions.

Now the organisation is stuck between producing BD700 which is almost ready for Infocomm
and BG700 which needs to be produced if it wants to compete with Sony 1270 immediately.

There seems be complete lack of coordination between departments as till now they are all
working in their individual silos. The challenge posed by Sony 1270 also exposed this indicating
towards efforts to improve the coordination within.

External problems before BPS

There is an impending danger of Sony 1270 disrupting the market with its better product features
and competitive price.

Distributors expressing mixed reactions, in terms of reducing prices in EU and US.

Customers / users still complaining that the product is not easy to install and use. Comment is
that the organisation is more interested in awards than customer reviews.

The organisation has not made concerted efforts to market itself as a customer friendly
organisation, though till now, it was charging premium due to superiority of its products.

Steps to be taken to solve the problem

To solve internal problems

- R&D department people need to take time out and re-envision the organisation. Though
this is to be done with all departments, but in this case it creates problem if we bring in
everyone in 1st step. Once the R&D people are convinced of the change that is needed to
keep the organisation going, then other departments can be invited for the re-envision
exercise.

- Once the departments all sit together and plan for the future, they need to think of how to
repair their relations with customers, distributors and B2B clients.

- Marketing department needs to come in explaining all that it can about client
expectations, which need to be incorporated in the future products. It must also do
damage control along with sales department in terms of meeting the orders already taken
from the dealers. Then the dealers need to be given confidence that a new product is
coming from BPS and that will prove itself superior to Sony 1270. The point that Sony is
a box dealer and sells less complicated equipment needs to be highlighted by the
marketing department. In this regard participating in the Infocomm with some conceptual
 ideas as to how the graphic segment will change with the products of BPS needs to be
presented.

- Convince and come to some margin related issues with dealers to keep selling the
existing products and BD700 which is slated for release.

- Production department needs to look out for options of getting the 8inch tube from Sony
and the lense which fits in to make a superior product. If necessary the department should
be ready to work with the supplier to come up with the right kind of lense.

- The finance department needs to present the picture that there is no problem in short-run
if the margins are shared with dealers to keep sales. The organisation has been making
money by charging premium till now, so financials in this regard would boost confidence
of all.

- The HR department has to come up with ideas of reducing stress and allocation of human
resources to ensure all projects are finished on time and for the next projects the scientists
are motivated.

- The CEO needs to drive all these changes and bring in improvements and complete
overhauling of the coordination that happens in the organisation. This is because, without
coordination and sharing of information between departments and collective work BPS
cannot come out of the problem.

External problems
- For all we know Sony might not be interested in taking strides in the graphics segment.
Even if it does, BPS can bring out the problems by writing critical reviews about the
product to stall the customers from purchasing the product.

- The organisation needs to reinvigorate its relations with dealers and work with them to
come up with easier ways of installation and devise guides which are visual rather than a
booklet.

- The organisation also needs to write about the efforts it is taking to improve the customer
friendliness by writing articles in trade magazines. Lot more public relations activities
needs to be done for the loyal client base.

- It can reduce the service fee, increase warranty and other perks that are possible in the
after sales service. This will help to cling on to the clients for a longer time and once the
product from BPS is ready, the same can be offered. All these efforts are to keep Sony
out of these clients.

- The organisation also needs to be look out for new markets in Asia where it has never
entered. This has to keep in mind that Sony is a well known brand in Asia and BPS
should be willing to spend budgets on marketing and advertising to make its presence felt
in these markets.