Atlantic Computer Essay

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ATLANTIC COMPUTER : A Bundle of Pricing Options Comparison of Different Pricing approaches of Atlantic Bundle of 2 Tronn Servers with PESA software equivalent to Competitor's , Ontario Computer Inc., Pricing of 4 Zink(Basic) Servers Sl No. Pricing Methods Atlantic Computer @ 2 Basic server with PESA 1 Status Quo Pricing $4,000.00 PESA SW offered Free of Cost 2 Competition Based Pricing $6,800.00 Incremental Value $2800 for PESA SW 3 Cost Plus Approach Pricing $4,491.03 Refer working in Sheet Cost Plus 4 Value in Use Pricing $8,400.00 Refer working in Sheet Value in Use Conclusion : Based on analysis , to capture the Market share , it is advisable to opt for Cost Plus Pricing approach as Atlantic computer is offering a better quality of services compare to Competitor , Ontario Competer Inc., with Lower Price. Such Pricing Strategy for Market Penetration, will help to achieve the projected Market Share with lower profit margin compare to other Pricing approaches. If Prices will be lower than that as like Status quo pricing, Customer may assume Atlantic Bundle as a low quality product and will not be helpful to capture the market share. Later on upon Market Share gain , Competition Based Pricing can be a better Pricing Strategy wherein Customer will be offered a superior services at a same rate compare to Ontario Zinc Servers. With Such Pricing approach, Atlantic Computers will be able to maximise its profitability. With High pricing as shown in Value in Use Pricing approach, consumers may not get motivated to buy the product and will not be helpful to increase the demand of Atlantic Bundle inspite of its superior quality of services. Calculation of Cost Plus Pricing approach for Atlantic Bundle Particulars/ Year 2001 2002 2003 Total High Performance Segment (units) 2 00 000 2 05 000 2 10 500 6 15 500

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