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 a conservative estimate that two Tronn servers plus PESA equals the performance of four Ontario Zink
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FOUR PRICING OPTIONS FOR DAYTRADERJOURNAL.COM The first option followed Atlantic’s tradition of only charging customers for hardware and giving away the PESA 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
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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: 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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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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VBA Option Pricer Introduction The Black Scholes Model of Stock Prices Fischer Black‚ Myron Scholes and Robert Merton made significant advances in the development of options pricers with their papers published in 1973. According to the Black Scholes model‚ the price path of stocks is defined by the following stochastic partial differential equation The development of a transparent and reasonably robust options pricing model underpinned the transformational growth of the options market
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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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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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