Atlantic Computer Case Study

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Atlantic Computer: Case Study
Strategic Management
Mitchell D. Upchurch
Dr. Johnny Eluka
July 19, 2011

Amidst an emerging U.S. marketplace opportunity, Atlantic Computers tasked the newly appointed product manager, Jason Jowers, with marketing and selling the company’s new product, the Atlantic Bundle. A server, software combination, the Atlantic Bundle would offer performance up to four times faster than the competitions standard speed, all within one machine. External Analysis:

Externally, Atlantic Computers had one major competitor in the basic server market, Ontario 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 of smaller vendors. In addition to competitors, Atlantic Computers recognized the emergence of the Internet and along with that, the need for basic servers, which had not been a major part of their operations. Seeing where their competitors were and the opportunities in the market, Atlantic Computers knew there was great potential in the market. Internal Analysis:

Atlantic Computers held the advantage of being the largest player in the overall computer industry and had participated in the market for the past 30 years selling high-end performance servers to large enterprise customers under the product name Radia. The firm, along with the server division, had a reputation for providing top-notch, highly reliable products and through their strategy to focus on customer intimacy and product differentiation; they developed a reputation for providing high quality, responsive post-sales...
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