named Tronn and the PESA which is a software tool that could enhance the speed of the server accelerator. The PESA has improved the speed of the server for 4 times based on the original speed. And this company’s main competitor is Ontario which accounts for 50% share in new market. What price should Jowers charge DayTraderJournal.com for the Atlantic Bundle (i.e. Tronn servers + PESA software tool? There are four choices. First‚ the company could stay the price and provide the free PESA with Tronn
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and is presently the one of the biggest player in the computer industry. The company is planning to introduce a new product “Atlantic Bundle” into the market. The “Atlantic Bundle” consists of a new basic server Tronn and a newly developed “Performance Enhancing Server Accelerator” (PESA) software tool. Ontario Computer‚ Inc‚ which has majority revenue market share in the segment is Atlantic’s biggest competitor and differentiates itself with competitive pricing and innovative business solutions
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Case Introduction: Jason Jowers‚ who had recently been hired by the computer manufacturer‚ Atlantic Computer‚ needed to devise a pricing plan for the company’s newest products: The Atlantic Bundle. This bundle contained the Tronn server and its corresponding software‚ the PESA. After an initial marketing meeting with a few key players‚ Jowers had input from the head of the server division (Matzer)‚ the director of the division’s R&D team (Jones)‚ and the director of new product marketing (Fowler)
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FOUR PRICING OPTIONS FOR DAYTRADERJOURNAL.COM The first option followed Atlantic’s tradition of only charging customers for hardware and giving away the PESA 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
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the Atlantic Bundle (Tronn servers + PESA)? Voor het beantwoorden van deze vraag zijn vier opties: [A] Een prijs gebaseerd op Value-in-use pricing [B] Een prijs gebaseerd op cost-plus pricing [C] Een prijs die gelijk is aan wat de consument bereid is te betalen voor een vergelijkbaar product (Ontario). [D] Een prijs die gebaseerd is op de prijs van de Tronn servers‚ de PESA wordt gratis meegeleverd. De bijbehorende prijzen zijn als volgt: [B] [C] Twee servers Tronn zijn gelijk aan vier
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Computer Inc. A company solely concentrated on the low-end server market‚ they produced the Zink product line. The Zink product line claimed fifty percent of the revenue market share in the basic server sector and performed at the same level as the Tronn. Additionally‚ Ontario was able to take advantage of online sales‚ where a majority of their sales were generated‚ and could compete largely on price due to efficient cost management practices. Aside from Ontario‚ the market consisted of a number
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Problem Definition Jason Jowers‚ a newly minted MBA‚ had joined Atlantic Computer just four months ago as the youngest product manager. He would be responsible for developing the pricing strategy for the "Atlantic Bundle" (i.e.‚ the new Tronn server and the PESA software tool)‚ which had been developed specifically to meet an emerging basic server market‚ a new market to the company. But it had to compete with Zink server of Ontario Computer‚ its major rival in this market. 2. Situation analysis
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costs and‚ therefore‚ have a pricing advantage over Atlantic Computer. Atlantics advantage‚ competing against Ontario’s Zink link with their Tronn software‚ was their PESA software tools that significantly increase the speed of the servers. Business customers of Atlantic Computers would receive the same level of performance by buying one Tronn loaded with the PESA‚ compared to buying four basic servers from Ontario. Therefore Atlantic Computers are faced with a several decision to gain a competitive
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proliferation of corporate websites and file sharing systems‚ huge demand is predicted in the basic server segment market over the next few years. In order to make the most of this opportunity‚ Atlantic has come put with a new product called Tronn‚ which when combined with the PESA software‚ would far outperform any of the comparable products available in the market. Atlantic now has to come up with an effective pricing strategy to successfully capitalize on this opportunity and at the same time overcome strong
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bundle‚which is Tronn server with PESA tool‚ need to be decided.there are four options available: 1.stick with company tradition by charging only for hardware and give the PESA software for free using a status-quo pricing. 2.charge a price equal to what the customer would pay for four Ontario Zink servers usingcompetition-based pricing. 3.Charge a price using cost-plus pricing. 4.charge a price based on value-in- use pricing. Status-quo-pricing:2 servers+Free PESA:2*2000=4000
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