ATLANTIC COMPUTER: A BUNDLE OF PRICING OPTIONS Situation Analysis Atlantic Computer is a manufacturer of servers and high-tech products. Two market segments exist in the server industry: High performance and Basic Servers. Atlantic Computers has held a 20% share of the High Performance market with their Radia servers being their premier product. However, the market for Basic servers is growing and this has caused Atlantic Computers to develop and introduce a Basic Server called the Tronn and
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Atlantic Computer is a manufacturer of Servers and High-tech products. Atlantic Computer, Inc. was the largest player in the overall computer industry and had been competing in the High Performance server segment with its product called Radia for 30 years capturing 20% of the market share in this segment. There are 2 market segments in the server industry with the largest segment being High Performance and Basic Servers segments. High performance Server segment is expected to demand approximately
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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 marketing (Fowler). In
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Atlantic Computers Case Study Analysis: A Bundle of Pricing Options Margaret Bednarowicz MKT 520: Marketing Management Morris Graduate School of Management Robert Morris University Mr. William Briner January 29, 2011 Case Background Atlantic Computer is a company which specializes in high performance servers and high tech products. With its Radia server, the company is considered to be one of the most important competitors in the high performance server market
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Executive summary Atlantic Computer is a firm that specializes in high performance servers and is known for selling top notch and highly reliable products. It has been the market leader of the high performance server segment with its Radia server for the last 30 years. However, the trend shows that the basic segment is growing significantly faster than the high performance segment in terms of growth. Now, this firm’s mail goal is to enter the basic segment by launching its new basic server “Tronn”
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Atlantic Computer is known for providing top-notch, highly reliable products and had developed a reputation for providing high quality, responsive post-sales assistance. Atlantic Computer has produced the ‘Atlantic Bundle’ (Tronn+ PESA), 4 times faster, to compete against Ontario’s Zink in the basic server market. The challenge is to get the right pricing strategy for the Atlantic bundle keeping in mind consumer behavior as well as reaction of competitors in the same market especially Ontario. Competition
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Individual’s Assignment Atlantic Computer: A Bundle of Pricing Options As Atlantic computer was largest manufacturer of servers and other hi-tech product, Jason Jowers has been assigned the task of developing the pricing structure for the Atlantic Bundle, a unique combination of the TRONN server along with the software tool - Performance Enhancing Server Accelerator – called PESA. The TRONN server has been specifically designed to address the current US market demand. In conjunction with the
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Executive Summary Atlantic Computer is computer hardware manufacturer of servers and other high tech products. Recently, there was the announcement of the development of a new server called the Tronn. This new product was specifically developed to address an emerging market in the US and would be sold with a piece of software called Performance Enhancing Server Accelerator or PESA. This software was designed to accelerate the performance of the aforementioned Tronn server and would allow this
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Situation: * Atlantic Computer is a manufacturer of servers and high-tech products * Two market segments: High performance and Basic Servers * The Tronn was developed mainly for the emerging US market opportunity for basic web servers * The Performance Enhancing Server Accelerator (PESA) allows Tronn to perform four times faster than its usual speed for standard procedures * Atlantic has 20% market share in High Performance Servers with Radia * Two Tronn servers equivalent
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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 of 2 TRONNs = Value of 4 ZINKs Four types of pricing strategies: * Competition based pricing * Cost plus pricing
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