Atlantic Computer Essay

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Case Analysis #1 – Atlantic Computer Problem definition and Goals: http://accountantsun.blogspot.com/2010/11/case-issue-develop-pricing-strategy-for.html http://accountantsun.blogspot.com/2010/11/atlantic-computer-1.html * 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. * Decide on the pricing strategy for Atlantic Bundle * Developing the pricing strategy for the “Atlantic Bundle * Pesa ould allow the tronn to perform up to 4 times faster than its standard speed * There are two main market segment in the server industry * The largest segment high performance servers, 200000units next year, grow around 3% annually Atlantic has been a strong player in this segment and has captured 20% off the revenue market share demand about 50000units in 2001 , and register about 36 compound annual growth rate through 2003 Will help New market Reputation of High quality responsive post-sales ssistance High performance servers and basic servers would not be viewed as substitutes by customers. Comptitosr – Ontario Ontario computer inc a firm that concentrated its effortsolely on the low-end server market with its Zink product line Atlantic’s Tronn was going to compete directly against Ontario’s Zink. That meant that a business customer could conceivably receive the same level off performance by buying one Tronn loaded with the PESA as compared to buyuing four basic servers The widely held belief is that software tools are just “part” of

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