* Introduction and statement of purpose Atlantic Computer Inc. is a large manufacturer of servers and other high end products 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
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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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Case Study : Atlantic Computers Index: Topic Sequence Company Overview Price Strategy adopted..........................................................................1.0 Matzer’s reaction to your recommendation...............................................2.0 Cadena’s reaction to your recommendation..............................................3.0 Customer’s reaction..............................................................................4.0 Responses to
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current brand associations and loyalty. In your answer include the following: • Why you chose that particular strategy? • What are your assumptions ? • What are the consequences of your decision? • How would you implement it? Atlantic Computer: A Bundle of Pricing Options 1. Determine the price for two Tronn servers plus PESA according to the following pricing methods: • Status-quo pricing • Competition-based pricing • Cost-plus Pricing (Hint: footnote # 5) Note: Jowers makes
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Atlantic Computer: A Bundle of Pricing Options * SK50911 양지호 오명은 박종도 윤원영 Summary Atlantic computer’s most important goal is to increase profitability by selling ‘Tronn with PESA’ packages to consumers who want to operate web sites or share files. Among 4 price alternatives suggested in the case‚ the price based on value-in-use pricing analysis will be charged for ‘Tronn with PESA’ package. To achieve this goal‚ the company should overcome some impediments; one is that consumers are
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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 company would enable Atlantic to rapidly increase its share in the basic server market. Daytraderjournal.com would benefit the most from this price‚ saving a total
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1 The pricing strategy for Atlantic computer 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
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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
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1. What price should Jowers charge DayTraderJournal.com for the Atlantic Bundle? Atlantic Computers ahs been a major competitor in the server market for nearly 30 years. The products are considered top of the line‚ having high quality and reliability. Their brand equity is an important factor to the success of the bundle. Success of the new product launch is in the hands of the server and PESA being sold as a bundle. It is the perception of the consumer‚ however‚ that software tools are usually
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Atlantic Computer: A Bundle of Pricing Options Richa Jagota 0773984 March 15th‚ 2010 The Atlantic Computer case is one in which we are asked to suggest a price for the Tronn servers and PESA software tool‚ specifically for the exemplary customer‚ DayTraderJournal.com. In order to make any decisions we must remember that any strategy we use shows the added benefits of the software‚ is easy to explain‚ and is a competitive pricing strategy. The first decision that needed to be made
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