Math & Engineering


of 5
All materials on our website are shared by users. If you have any questions about copyright issues, please report us to resolve them. We are always happy to assist you.
Related Documents
  PROTOGONISTErik Dejonghe, the iconoclast Senior Vice-President and chief operating officer of arco Projection s!ste"s #as in a $%andar! regarding a &efitting riposte to an o"ino%s prod%ct la%nch &%lletin &! a ri'al fir" Son!( PRO)E* +D EISION arcos consternation kne# no &o%nds #hen Son! anno%nced an i""inent la%nch of their ne# prod%ct, the ./01 projector series( The latest offering &! Son! pro"ised to &e "ore ad'anced, clai"ed s%perior, %nheard of perfor"ance and significant cost red%ction to the &%!ers( arco, #ho #ere ca%ght off-g%ard &! this pre-e"pti'e strike &! Son!, #ere light !ears a#a! fro" catching %p #ith Son! on this front, had to effect i""ediate changes in the #ake of a significant "arket share #asho%t and also to hold fort against their ri'als antics(OPTIONSIn order to co%nter the i"pending reperc%ssions of Son!s ne# prod%ct la%nch, it is i"perati'e that arco #eigh their options in ter"s of prod%ct and price "odifications( Pricing options 2 3Ind%ce a considera&le price red%ction its leading "odel 'i4-a-'i4 the G 511 3Pla! the #ait and #atch ga"e( Product options 2-o"plete the portending prod%ction of its pipeline project, the D 011( 6ltho%gh not at par #ith the ./01, it #o%ld certainl! pass off as a stat%tator! repl! to Son!s "o'e(-7ork on de'eloping their proposed "odel, the G 811( 6rg%a&l!, the &est option a'aila&le to arco, introd%cing this latest addition to their prod%ct line #o%ld effecti'el! negate the threat posed &! Son!( 6 &reakneck scan speed eclipsing that of Son!s ./01 &! far 9:1 kh4 co"pared to ./01s 0;< and nonpareil perfor"ance #o%ld strip Son! of the &enefits it seeks to gain #ith its fresh offering(  RITI6) EV6)=6TION HOW SONY MANAGED TO STUMP BARCO 3apitali4ed on arcos "!opic 'ie# that technolog! dri'es prod%cts( ! foc%ssing on the other aspects of "arketing strateg! like ha'ing an e>tensi'e distri&%tion channel and di'ersification of "arket seg"ents, Son! #as a&le to gra& a ch%nk of SO* and also generate eno%gh re'en%es #hich it co%ld %tili4e in de'eloping ne# prod%cts(3arco concentrated "ore on the pre"i%" high-end prod%cts and "eted o%t a &anal treat"ent to the s%&se$%ent le'els, #hich Son! #as enterprising eno%gh to po%nce on on and "ake a "ark( BARCO’S CHIE MISGI!ING  The core iss%e of the entire "elee at arco is essentiall! d%e to their inade$%ate anticipator! skills #ith regards to the sensing #here the "arket is headed and #hat the co"petitors are %p to( Despite &eing technolog!-dri'en, this #as alread! the third ti"e that arco engineers #ere ca%ght of g%ard &! Son! in the t%&e do"ain 9/<2? In .:8;, Son!s .1/1 projector, altho%gh slo#er than arcos projectors at the ti"e,had a sharper foc%s, indicating a &etter $%alit! t%&e(? In .:80, Son! introd%ced a 'ideo projector %sing a ne# t%&e( arco e'ent%all!incorporated this t%&e into its D@11 prod%ct(? In Ae&%rar! .:8:, Son! o"ponents contacted arco to infor" the" of a ne# 8B t%&e(arco engineers decided not to incorporate the t%&e into the D011 as it #o%ld re$%ire a redesign and so%rcing of a ne# lens( S%rprisingl! for PS, the 8B t%&e no# t%rns o%t to &e the ke! co"ponent responsi&le for the technical s%periorit! of the ./01(If arco #ants to "aintain a co"petiti'e edge, the! ha'e no choice &%t to contin%o%sl! adopt inno'ati'e technologies( Aailing to do so #ill res%lt in arco &eing a follo#er rather then a technolog! leader( BARCO’S P"AUSIB"E COURSE O ACTION 3 Effecting a price red%ction 6 predica"ent faced &! arco is ho# to respond to the price erosion that can &e e>pected &! the introd%ction of the Son! ./01( 7e delineate t#o opposite ends of the spectr%"2  1) The 1270 is launched with a price of $20,000   The "argin contri&%tion of the G511 is /:C, indicating that the cost to prod%ce is .0,151( These "argins do allo# for a certain, al&eit li"ited price red%ction( In case the price of the G511 is "aintained 9res%lting in an esti"ated "arket shareloss of 1C<, the total profit #ill still &e higher co"pared to a red%ction in price of theG 511 to /.,111 9Refer to anne>%re<(  2) The 1270 is launched with a price of $15,000 If the price of the G511 is "aintained, leading to an esti"ated "arket share loss of @1C, the total profit #ill still &e higher co"pared to a red%ction in price of the G 511 to .:811 9anne>%re<( O&'io%sl!, in case arco sells the G511 at a cost 9.0,151<, there #ill &e lo# profit( It is e'ident that arco in an! case #o%ld opti"ise profit &! "aintaining c%rrent price le'els of the G511, e'en taking into acco%nt that this co%ld red%ce "arket share &! %p to @1C(3 )INGER 6ND SIT TIGFT 6ltho%gh a potential &lock&%ster, the Son! ./01 is !et to &e la%nched and it is too earl! to predict ho# it perfor"s, ho# the cons%"ers react it and the acceptance it garners fro" the "arket( 6'oiding a knee-jerk reaction and deferring the decisions #o%ld ena&le arco to ha'e a clearer pict%re and "o%ld their strategies accordingl!( Fo#e'er, a gospel tr%th arco sho%ld reali4e is that it can ne'er co"pete #ith Son! on the price #ars front( arco has al#a!s &een a high-end, pre"i%" prod%ct co"pan! and Son! a lo#-end, di'ersified one( 6 red%ction in price #ill pro"pt Son! to red%ce their prices f%rther, erding the profits f%rther(D%e to econo"ies of scale, Son! le'erage to lo#er prices is greater than that of arco(3Introd%cing the prod%ct in the pipeline , the D 011 arco can either proceed #ith the la%nch of D 011 or can e'en stri'e to de'elop an ad'ance 'ersion of the D011, the G011, hoping that it #ill &e la%nched on ti"e to co"pete #ith Son!s ./01( *oreo'er there #ere ro&%st profita&ilit! forecasts of  5( "illion and orders had alread! started p%ring in for #hich co""it"ents too &een pro"ised( Fo#e'er, e'en if arco "angges to achie'e this feat, it #ill not !ield the desira&le res%lts since it cannot o%t perfor" Son! ./01 in ter"s of the perfor"ance(3Proceed to de'eloping the ad'anced "odel the G 811 ( I"ple"enting this "eas%re #o%ld entail a considera&le allocation of reso%rces and corporate assets( This #o%ld !ield se'eral &enefits to the co"pan!( esides taking o%t the threat of "arket annihilation, an  effecti'e la%nch #o%ld ce"ent the co"pan!s rep%tation of &eing ingen%o%s #hen it co"es to technolog!( 6 so%nd esta&lish"ent of the ne# prod%ct #ill also pro'ide a lee#a! for arco to di'ers! on the "arket seg"entation front, &! di'erting the other leading prod%cts to the non-pre"i%" seg"ent of the projectors "arket(Fo#e'er, esti"ates re'eal a &leak chance of this option &eing act%all! e'inced( The General *anager of PS, Arans laer&o%t hi"self accorded the de'elop"ent of this prod%ct a pro&a&ilit! of 51C( The co"pan! #o%ld &e stretched at all fronts if this prod%ct has to see the light of the da! in the gi'en ti"e li"it( *oreo'er, proceeding #ith this prod%ct #o%ld entail postponing the prod%ction of D 011, for #hich orders had &een taken and prod%ction process had &een initiated( 6 defer"ent #o%ld not a%g%r #ell for the co"pan! in ter"s of c%sto"er dissatisfaction and "arred rep%tation( PROPOSITIONS .(Relentlessl! p%rs%it the de'elop"ent and ti"el! la%nch of the ad'anced "odel G 811( This partic%lar "odel #as concei'ed as a f%t%re option, an a'en%e #hich arco #o%ld e>plore e'ent%all! in the co%rse of ti"e( Fo#e'er it no# has an incenti'e to prepone their plans and concentrate their efforts and reso%rces into reali4ing a si"%ltaneo%s la%nch of this prod%ct #ith Son!s ./01(/(Shift the co"pan! foc%s fro" &eing prod%ct-oriented to "arket-oriented( E'en a niche pla!er like arco has to "ake prod%ct de'elop"ent decisions &ased on "arket infor"ation(6 ke! factor for Son!s re"arka&le s%ccess is their foc%s on lo# end prod%cts, as opposed to arcos high end o&jecti'es( The latter sho%ld pa! attention to this "arket and concentrate on di'ersification and la%nch &rand proliferation( The! can "ake a &rand to foc%s on 'ol%"e and lo# price5(E>plore e"erging "arkets like 6sia( This region has #itnessed a tre"endo%s gro#th of .8C, #hich sho%ld sp%r &arco to e>tend their scope in these l%crati'e "arkets as #ell(;(6part fro" adhering to their catering prod%cts for niche "arket , it is i"perati'e that arco contin%e to de'ote co""it"ent to research and de'elop"ent to retain top $%alit! prod%cts and their "arket leadership( The! sho%ld %ndertake a contin%o%s  s!ste"atic sco%ting for ne# technological de'elop"ents #ith the ai" of incorporating s%ch inno'ation in arcos end prod%cts( arco sho%ld not rel! on o%tside so%rce for ra# "aterials &%t instead de'elop "ost of it in-ho%se( In lie% of this re$%ire"ent an i""ediate "eas%re to reckon #ith is that the! find "ore pro'iders of t%&es, not j%st Son!(  @(Het another ke! factor for Son!s st%pendo%s s%ccess is their ela&orate distri&%tion s!ste"( Son! dispersed their prod%cts thro%gh an adroit net#ork of capti'e co""ercial distri&%tors aided &! .;11 dealers as opposed to 5; distri&%tors and 511 dealers of arco( In =(S alone, Son! had ;11 dealers co"pared to PS .11( *ore'er Son!s procli'it! to#ards &o> dealers and their e>tensi'e co'erage a&etted lo# street prices for its projectors and also higher sales 'ol%"es( This sho%ld &e a c%e for arco to re' %p their distri&%tion channel as #ell #hich at present is inade$%ate(0(Het another critical factor #hich arco #o%ld re$%ire to s%stain their ascendanc! in the projectors "arket is to perfor" efficient en'iron"ent and co"petitor scanning to sta! ahead in the race( This #o%ld certainl! ens%re that arco is not ca%ght off g%ard again &! co"petitors strategies(8(6 "ajor dra#&ack of arco projectors are their co"ple>ities and specifications( It #o%ld &e hand! for arco to "ake their prod%cts "ore %ser-friendl!(ontin%o%s  s!ste"atic sco%ting for ne# technological de'elop"ents #ith the ai"of incorporating s%ch inno'ation in arcos end prod%cts(
We Need Your Support
Thank you for visiting our website and your interest in our free products and services. We are nonprofit website to share and download documents. To the running of this website, we need your help to support us.

Thanks to everyone for your continued support.

No, Thanks