Bps

Pros and Cons (if we care to use it. I’m bored and need something to do)

We analyzed the data and came up with pros and cons for each alternative suggested by management.

If BPS goes ahead with the BD700 as planned, they will:

• fulfill their advanced orders already in place maintaining relationships with current customers

• open up the potential for sales of the new digital technology between October and the release date of the 1270, which could be at the Infocomm in January of 1990

• not give up the resources already invested into the project

The downfalls of only going with the BD700 are:

• the product is inferior in regards to picture and resolution when compared to the 1270 and could possibly be higher in price

• the product has a lower scan rate than the 1270

• the potential for a loss in market to the Sony product

Another option was to advance the development of the BG700 with a completion date on or before Infocomm. Going with this plan BPS will:

• be able to introduce digital technology at Infocomm

• introduce a product that matches the scan rate of the Sony 1270

• introduce a superior graphics projector, which should maintain and possibly increase our current share of the graphics market

• still allow the completion of the BD700, a second digital product for the markt

Alternatively, this plan will:

• delay the completion of the BD700 by two months, which will negatively affect their customers who have already ordered the product and dealers that are promoting it

• introduce a product with a 7” tube, which could be considered inferior to Sony’s 8” tube

A third option suggested by management will:

• introduce a competitive product with digital technology, an 8” tube and superior scan rate of 90 kHz

• allows the product line to follow the trends of advancement of industrial technology

Though the pros of this plan seem to put BPS in the best position to compete with the 1270, a number of cons suggest otherwise. They are:

• loss of advance sales of the BD700 along with their reputation

• loss of extensive resources invested in the project if it isn’t completed afterwards

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