Case analysis -Atlantic computer: A bundle of pricing options The main products of Atlantic computer are high-tech goods and servers. And in recent stage‚ the company has two segments including the basic market and the new market. Atlantic shows its relative advantages in the basic markets with the product Radia and it is a main product of this company. And it is fortunately that the new marketing grows so fast that could bring large profits for the company. The company has the premier products
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Perspective 1 1. Stick with company tradition by charging only for hardware and give the PESA software tool away for free. As can be seen in Exhibit 2‚ 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
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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
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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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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 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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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 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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of economic development‚” Journal of Monetary Economics‚ 22‚ 3‐42. Mas‚ Ignacio (2009): “The economics of branchless banking‚” Innovations‚ 4(2)‚ 57‐76‚ MIT Press. Mas and Morawczynski (2009): “Designing Mobile Money Services: Lessons from M‐PESA‚” Innovations‚ 4(2)‚ 77‐92‚ MIT Press. Mas‚ Ignacio and Sarah Rotman (2008): “Going Cashless at the Point of Sale: Hits and Misses in Developed Countries‚” Consultative Group to Assist the Poor‚ Focus Note No. 51‚ Washington DC.
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Assignment Atlantic computers‚ a leading player in the high-end server market‚ has detected a marketplace opportunity in the basic server segment. They have developed a new server‚ the Tronn‚ to meet the needs of this segment. In addition they have created a software tool‚ called the “performance Enhancing Server Accelerator” or PESA‚ that allows the Tronn platform up to four times faster than its standard speed. The central question in the case revolves around how to price the Tronn and PESA. Although
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