Marketing Analysis for "Atlantic Bundle"

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Atlantic Computer, Inc., once the largest player in the overall computer industry, has been competing in the overall server market for 30 years by providing large enterprise customers with high-end performance servers, called Radia. Focusing on customer intimacy and product differentiation, Altantic Computer, In. and its Server Division have a good reputation for selling high-quality products with responsive post-sales assistance. Yielded by the Internet and the proliferation of applications in the late 1990s, there is an emerging trend of low-end, basic server systems. The low-end basic servers market is estimated to expand with about 36% compound annual growth rate through 2003. In response to the projected growth of the basic server market, Atlantic Computer, Inc., has decided to introduce a new server model called the “Tronn” in an approach to downward the division’s product lin. Its main competitor is Ontario Computer, In., a firm concentrated on the basic server market with Zink product line claiming half of the total revenue market share. Jason Jowers, the product manager of the “Atlantic Bundle” is developing the best pricing strategy together with several colleagues – Chris Matzer, head of the server division; Harry Fowler, director of new product marketing; Emily Jones, director of the division’s R&D team; and Jeiro Cadena, director of sales. Developed to meet an emerging U.S. marketplace opportunity, the “Atlantic Bundle” is combined by the new Tronn server and the PESA (Performance Enhancing Server Accelerator) software tool, which is specifically designed, allowing the Tronn server to perform up to 4 times faster than its standard speek, making frequently requested information more accessiable. There are 2 main market segments that “Atlantic Bundle” is targeting: the High Performance Servers, which represents the traditional use of servers to run

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