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There are four pricing strategies that Atlantic Computer can choose from, each of these alternatives have positive and negative aspects, so I’m going to evaluate the four of them: status-quo pricing, competition-based pricing, cost-plus pricing and value-in-use pricing. The final recommendation is based on the points of differentiation between the Atlantic Bundle and its competition Zink Server (Ontario Computer).
a. Stick with the traditional approach, charging for hardware and give the PESA (Performance Enhancing Server Accelerator) software tool for free, status quo pricing. This first strategy is the same that Atlantic Computer and the hardware industry have used since the beginning. It is a strategy that is based on the fact that most of Atlantic servers are high-end performance servers (Radia) and the large enterprise market is buying complex servers to do, save and process large number of calculations and analysis. However, Atlantic has focused a marketplace opportunity in a new growing market, basic server segment, where simple processes and show website information on the internet are needed. For this reason Atlantic computer can charge for the hardware, but PESA is a great tool that customers can get more value from Atlantic Computer. It is not the best pricing strategy to differentiate from the competition and transmit the value proposition to the customer because it is the lowest priced option and it will need sell a large amount of servers to break even the cost of development of this software tool. This option does not show the value of the product, if Atlantic chooses status-quo pricing the customer will assume that the software tool is just another simple tool that do not give extra performance and because its price they will think that is not something complex and different from its competitors, Zink.
The numerical analysis for this strategy is:

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