Weaknesses: Consumer friendly: it is known that BPS has goodreputation among the dealers however they lack customer friendliness, it hasbeen complaint by the end users that sometimes BPS projectors are very complexto use and understand. Those kinds of complexity slow inefficiency and at thesame time can potential hurt its sales. Mistakes: The reliance on the Sony’s component, it is very scary that BPS is replying on Sony as theirsource of the part tube. Tube is very important part of the projector, as ittakes around 15 percent of the cost structure. In the late 1985 Sony has becametheir sole supplier and the company terminated their relationship with Clinton.This is the one of the worst move a company can make, buying parts from thecompetitor, not only will Sony know all the potential moves, demand, inventory capacityand many important information.
They will also have a huge leverage whencompeting against BPS. Just like what the operation manager said in the case”Anytime Sony wants to squeeze us out they can just raise the price of theirtubes” In the case studyone manager even stated that ” we share a certain amount of technical anddevelopment information with Sony , while they keep us abreast of their latestdevelopment” Obtaining tubes from outside suppliers might be more expensive butcompare to the risk of leaking important R secrets or Sony cutting offthe supply, the little increase in cost is minimal. BPS must actively seekindependent tube supplier as soon as possible, although it might cost more inthe short run, but it is nothing compare to the potential risk and cost of Sonyterminating the contract for tube supply. The Competition In august 1989, at the Siggraph trade show, Sonypreviewed a projector the 1270 which has the ability to scan 75kHz that is 3kHzmore than BPS’s recent model along with that also has better image quality and resolution.It is rumoured that the price of unit will be 20 percent lower to the standard.
Eltrohome: is a private held native Canadian company,it is third in unit sales behind Sony and BPS, However they only operate in thefield of dara and graphic projectors. On the other hand NEC is the other maincpmpeitior , however this Japanese electronics manufacturer is not performingtoo well as they lack effective distribution channels. Opportunity: The Opportunity of the BPS lies in the niche market ofhigh end graphic projector, it is more expensive and is in a niche market.
BPShas an amazing reputation with the customers and are preferred by the dealerswhom would usually prefer to carry their products. BPS must take advantage ofthose strength and expand their product in the high-end market. According to table A, among all the projectorsgraphic projectors has the highest predicted annual growth of 40.
2% for thenext 5 years. Sony’s new project’s targeting market is north America and Europe,however according to Table B, Asia has the highest predicted annual growth, between1980s and 1990s Asian economy booming rapidly and therefore the demand for industrialused projector will only rise. Therefore, the opportunity they should focus onis the graphic projector and target the booming Asian market. Evaluation: The visionDejoghe talked about is that both those company will stay at their own market,agreeing upon to the established market price and gain profit from that. WhereSony would get some information about BPS and in return they will supply thetubes for the BPS. Sony’s projector performance and price are typically lowerthan BPS as they are more consumers focused. The reason Sony reject that visionis because they are no longer satisfied with their current market, market imageand their market share.
The want to change the company reputation makescustomers believe that they are not just a low-end cheap products producer, butthey want to reconquer the graphic and data markets a much larger market share.Three options