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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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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Atlantic Computer – Business case Case introduction Atlantic Computer is a manufacturer of servers and other high-tech products. Following the growth of the internet there has been an increase of demand for cheaper‚ Basic Segment Servers. Atlantic Computer‚ currently having a 20% market share in the High Performance Server market‚ has decided to expand their product range and enter the Basic Segment market. Their response to the projected 36% compound annual growth in demand for Basic Servers
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Mountain Man Brewing Company: Bringing the Brand to Light 1. What are the pros and cons of introducing or not introducing Mountain Man Light to the market? Read carefully the case and make a list of the pros and cons of each possible action. Use the following table to summarize your findings. Consider the following points: Introducing Mountain Man Light Not introducing Mountain Man Light Pros Cons 2. Estimate the financial projections of MMBC from 2006-2010 assuming the
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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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high-performance servers. 2. Charge a price equal to what the customer would pay for four Ontario Zink servers. The case states that Ontario’s Zink servers dominate the basic server segment‚ and therefore the introduction of the Tronn server would mean that the two companies would be competing directly against one another. Further‚ Ontario holds a supply-chain advantage over Atlantic‚ in that they ensure that their products are widely available to all consumers‚ e.g. the majority of their sales are
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CASE ANALYSIS: ATLANTIC COMPUTERS-A BUNDLE OF PRICING OPTIONS SUBMITTED BY: KRITIKA JAIN PG20112055 Atlantic computers are the largest manufacturer of servers and other high tech products with a 20% market revenue share in the segment. The company plans to launch a basic server TRONN and software PESA due to growth in demand for basic servers. Important Details * competitor: ONTARIO ZINK * CAGR: 3%(BS segment) * TRONN along with PESA works FOUR times more efficiently. * Value
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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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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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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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