there is a noticeable difference between basic servers running with and without the PESA software. This difference would cater directly to those customers in the file-sharing application and web-server segments of the market. Currently‚ as the Tronn would be competing directly with the rival company’s Zink server‚ which is priced at $1‚700 as opposed to the Tronn’s $2‚000‚ customer’s would assume that the Zink is better value as it costs less‚ despite the fact that the price shows a 40% mark-up over
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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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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 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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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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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 Computers As Jason Jowers‚ product manager at Atlantic Computers‚ I am responsible for developing the pricing strategy of the new Atlantic Bundle. Atlantic Computers is a large manufacturer of servers and other high tech products. In our server industry‚ there are two main market segments and until now our company has only focused on one. The largest market segment is devoted to the high performance servers that traditionally are meant to run complex application such as scientific
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CHRISTIAN SERVICE UNIVERSITY COLLEGE DEPARTMENT OF BUSINESS STUDIES PRICING AND ITS EFFECTS ON CONSUMER BUYER BEHAVIOUR BY ISAAC OFORI MANU SHIRLEY ANNOR PRISCILLA ADJEI ERIC OFOLI ANANG MARY ABENA FORDJOUR JULY 2011 STATEMENT OF AUTHENTICITY We have read the university regulation relating to plagiarism and certify that this report is all our own work and do not contain any unacknowledged work from any other source. We also declare that we have been under supervision for this report herein
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com/different-types-pricing-strategy-4688.html Different Types of Pricing Strategy Pricing is one of the four elements of the marketing mix‚ along with product‚ place and promotion. Pricing strategy is important for companies who wish to achieve success by finding the price point where they can maximize sales and profits. Companies may use a variety of pricing strategies‚ depending on their own unique marketing goals and objectives. Premium Pricing Premium pricing strategy establishes a price
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