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BARCO Case Assignment

BARCO should pursue the BD700 option. The BD700 incorporated improved technology over the BG400 and had orders already placed in Germany. Forecasts predicted $17.2 million in revenue, a 25% growth. Not releasing the BD700 would waste R&D efforts and lower morale. The BG700 would still be inferior to competitors, while the BG800 faced a risk of missing deadlines and required a special lens not yet available.

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155 views

BARCO Case Assignment

BARCO should pursue the BD700 option. The BD700 incorporated improved technology over the BG400 and had orders already placed in Germany. Forecasts predicted $17.2 million in revenue, a 25% growth. Not releasing the BD700 would waste R&D efforts and lower morale. The BG700 would still be inferior to competitors, while the BG800 faced a risk of missing deadlines and required a special lens not yet available.

Uploaded by

Tanya
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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BARCO Case Assignment

1. Which of three product development options should BARCO pursue and why?
(Please keep in mind that the company can pick only one of the three)

BARCO should stay on its plan to introduce BD700 for the following reasons –
 Sony introduced its new model - 1270, which gave higher performance and boasted
of better technology than Barco’s BG400. Even with better performance it was
rumoured to be priced at a lower rate than BG400
 In this situation, Barco did not have an option to lower its prices as that would lead to
a price war and lead to lower profitability
 BD700 incorporated improved generator and scanning frequency. Distributors in
Germany had already placed orders for the same with price at $16000. Losing these
orders would prove to be risky
 Forecasted revenue for BD700 was $17.2 million which was an incremental growth
of 25%
 Not introducing BD700 would mean a wastage of effort for the R&D team and can
negatively affect their morale
 BG700 should not be launched because it would still be an inferior product and won’t
be able to compete with Sony. It would also take another 2-3 months to develop.
Investing further in BG700 would hence be a wasted effort. The amount can be used
to develop BG800 instead that can effectively compete with Sony
 BG800 can’t be launched because there’s only a 40% chance that it would meet the
infocomm deadline. Also, BG800 uses the 8” tube which required a special lens
which the current traditional lens supplier did not have a compatible product for the
same.

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