Atlantic Computer – Business case Case introduction Atlantic Computer is a manufacturer of servers and other high-tech products. Following the growth of the internet there has been an increase of demand for cheaper‚ Basic Segment Servers. Atlantic Computer‚ currently having a 20% market share in the High Performance Server market‚ has decided to expand their product range and enter the Basic Segment market. Their response to the projected 36% compound annual growth in demand for Basic Servers
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Case analysis -Atlantic computer: A bundle of pricing options The main products of Atlantic computer are high-tech goods and servers. And in recent stage‚ the company has two segments including the basic market and the new market. Atlantic shows its relative advantages in the basic markets with the product Radia and it is a main product of this company. And it is fortunately that the new marketing grows so fast that could bring large profits for the company. The company has the premier products
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high-performance servers. 2. Charge a price equal to what the customer would pay for four Ontario Zink servers. The case states that Ontario’s Zink servers dominate the basic server segment‚ and therefore the introduction of the Tronn server would mean that the two companies would be competing directly against one another. Further‚ Ontario holds a supply-chain advantage over Atlantic‚ in that they ensure that their products are widely available to all consumers‚ e.g. the majority of their sales are
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Introduction Atlantic Computer developed a product‚ the “Atlantic Bundle”‚ to meet an emerging basic server market. The Atlantic Bundle is a Tronn server coupled with the Performance Enhancing Server Accelerator software tool “PESA”. Atlantic Computer must decide on the pricing strategy. Situational Analysis The external analysis is as follows: • Customers: The first customer identified has a primary need to host websites‚ “Web Server” customer. The second customer identified has a primary
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CASE ANALYSIS: ATLANTIC COMPUTERS-A BUNDLE OF PRICING OPTIONS SUBMITTED BY: KRITIKA JAIN PG20112055 Atlantic computers are the largest manufacturer of servers and other high tech products with a 20% market revenue share in the segment. The company plans to launch a basic server TRONN and software PESA due to growth in demand for basic servers. Important Details * competitor: ONTARIO ZINK * CAGR: 3%(BS segment) * TRONN along with PESA works FOUR times more efficiently. * Value
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Atlantic Computer is a large manufacturer for servers and other technology products. They have seen great success in the last 30 years since they have been competing in the market. While they have previously dominated the high-end server market‚ they are looking to expand to an emerging market‚ the basic server market. In order to do so‚ they have developed Tronn along with the Performance Enhancing Server Accelerator‚ otherwise known as PESA. Because Atlantic is penetrating new market segment than
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ATLANTIC COMPUTER Atlantic Computer‚ a large manufacturer of servers and other high-tech products‚ has assigned Jason Jowers the responsibility of developing the pricing strategy for the new ‘Atlantic Bundle’. The bundle incorporates a new Tronn server and the Performance Enhancing Server Accelerator (PESA) software tool which allows the Tronn to perform up to four (4) times faster than its standard speed. The Tronn was specifically developed to meet an emerging U.S. marketplace opportunity and
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software for free‚ assuming that each Tronn server costs $2‚000. While free software is believed to be the “industry norm‚” it puts Atlantic at a considerable disadvantage as they would not be reimbursed for the fixed cost of $2 million spent to develop their proprietary performance-enhancing software. This price‚ however‚ ensures that the company would enable Atlantic to rapidly increase its share in the basic server market. Daytraderjournal.com would benefit the most from this price‚ saving a total
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October 18th 2011 Atlantic Computer Case Section 1 1. The “Atlantic Bundle” should use a value-in-use pricing strategy. 2. $2‚500 per Tronn server with PESA software 3. Sales force will have a tough time selling the increased cost of the servers to the end customer based on software; the standard in the marketplace is that this software should be free. Also‚ they will be concerned with a smaller commission with fewer servers being purchased by each customer. To motivate the
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ATLANTIC COMPUTER – CASE STUDY QUESTIONS 1.- What Price should Jowers charge DayTraderJournal.com for the Atlantic Bundle (that is‚ Tronn servers + PESA software tool) according to the following four criteria? Option A): Status-quo pricing $4000 for the Atlantic Bundle. Option B): Competition-based pricing $6800 for the Atlantic Bundle. Option C): Cost-plus pricing $4491.04 for the Atlantic Bundle. Option D): Value-in-use pricing $8400 for the Atlantic Bundle. 2.- Think broadly about
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