Atlantic Computer: a Bundle of Pricing Options

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[Case Write-Up #5, 2011-11-14]

Case 6. Atlantic Computer

Group 11
2010123281 Lim, Min A
2010123380 Lee, Yoon Ji
2010101026 Na, Hyeon Jung
2010123031 Park, Jae Eon

Ⅰ. Executive Summary
At the present, with the growth of the Internet, the basic server market is growing rapidly and the Atlantic computer, which is aimed at producing the high performance server, is ready to sell the basic server. It launches the Tronn loaded with PESA. PESA, the software increases the speed of file sharing and web servers, two of the most used application for the consumers, so it should be sold with the Tronn, the hardware. At first year, if we assume that the firm will be able to sell all of the Tronn servers it can produce, Atlantic’s resulting share of the basic server segment will be 4%. We suggest that possibility as our goal to pursue. But the basic market is already full with the competitor, Ontario with the Zink and the company has a tendency to stick to the traditional marketing approach. To overcome these impediments, we suggest to set the price based on the calculation of cost-based pricing and to abandon the original direct marketing methods and accept the indirect ways like online-marketing and the advertisement through diverse media. Ⅱ. Problem Analysis (Goal & Impediments)

Goal
As new-comer of the basic server market, Atlantic’s computer begins from the scratch. If Atlantic’s computer can sell all of its product, the Tronn, it can occupy 4% in basic server market. But the thing is, it is a ground stone to enlarge the market share in the long run, so it would better not to harm the revenue to reach that figure. The targeted consumers is people who have demand for basic server, especially who are interested in one application, especially either of file sharing and web servers, and who seeks the way to minimize the initial purchase costs and subsequent possession costs. Impediments

We have two main impediments for our goal, strong competitor and...
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