Atlantic computers case

Page 1 of 4

Atlantic computers case

By | October 2008
Page 1 of 4
Atlantic Computer 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). In addition, Jowers also needs to take into consideration the thoughts of the sales department, lead by Jairo Cadena. Atlantic’s biggest competitor is Ontario Computer, Inc, which is a cost cutter in the industry, and Atlantic Computer needs to bear in mind the customers and products that Ontario is after as well.

External Analysis: The need for internet servers in America’s workplace is a growing market, with several different segments. First, there is the segment for High Performance Servers, which represents those who take on complex applications such as supply chain managements and business intelligence. On the other hand, there is need for servers to complete basic, repeatable tasks, such as browse the internet. Both segments are expected to grow, but the segment needed basic computing capabilities is growing at a much faster rate.

Ontario Computers has been the leading company for servers for a long time, mainly because of their ability to sell at low price. They cut costs because they only sell online and have mastered the supply chain process to minimize costs. They claim to not have the best product, but the “most flexible and innovative supply chain possible”. This is both a threat and an opportunity because customer may be drawn to them because of the low price, but Atlantic can capture the ‘best product’ reputation that hasn’t been dominated by Ontario Computers yet.

Customers looking for the basic server application are very...