Scribd
Upload
16 views2 pages

Atlantic Computer's High-Performance Server Strategy

Atlantic Computer produces servers and other tech products. They developed a new high-performance server called the Tronn, which can be 4x faster with their Performance Enhancing Server Accelerator (PESA) software. They expect to sell 200,000 high-performance servers and 50,000 basic servers next year. Ontario currently dominates the basic server market. Atlantic is considering 4 pricing strategies for the Tronn/PESA bundle: sticking with bundling them for free, matching competitors' prices, using cost-plus pricing, or charging based on the value customers get from the faster speeds.

Uploaded by

Al Aji
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
16 views2 pages

Atlantic Computer's High-Performance Server Strategy

Atlantic Computer produces servers and other tech products. They developed a new high-performance server called the Tronn, which can be 4x faster with their Performance Enhancing Server Accelerator (PESA) software. They expect to sell 200,000 high-performance servers and 50,000 basic servers next year. Ontario currently dominates the basic server market. Atlantic is considering 4 pricing strategies for the Tronn/PESA bundle: sticking with bundling them for free, matching competitors' prices, using cost-plus pricing, or charging based on the value customers get from the faster speeds.

Uploaded by

Al Aji
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Atlantic Computer: a large manufacturer of servers and other high tech products, Jowers had joined

the company just four months ago as a newly minted MBA.

Atlantic produced a new server, The Tronn. Atlantic also develop program called PESA (Performance
Enhancing Server Accelerator. It allow the Tronn to perform up to 4 times faster than its standard speed.

There are two segments:

High Performance Server: Demand approximately 200.000 units next year and grow around 3% annually
the following two years. And it has market share 20%.

Basic Server: Growth 36% annually and demand 50.000 in 2001

Competitor:

Ontario has dominated market of basic server.

Key Factor influencing pricing strategy:

1. Traditional focus: because we can’t separate PESA and Tronn.


2. Cost Plus Pricing Strategy: A product consist of direct cost, indirect cost and fixed cost.
3. PESA only effective in File Sharing and Web Server.

Planning Strategy:

Customer Profile:

1. DayTraderJournal : web server to host the company’s website.


2. Where day trader can review article and relevan training information.

4 Option for pricing Strategy

1. Stick with company tradition. Bundled PESA(Free) and Tronn.


2. Charge a price equal to Four Zink Ontario Server. Competition Base Pricing.
3. Cost Plus Pricing.
4. Charge price based on value in use pricing.

You might also like