Atlantic Computers Harvard Case Study

 

Case Issue

Develop a pricing strategy for ¶Atlantic bundle· - the new Tronn server and the PESA(Performance Enhancing Server Accelerator) software tool before SME trade show 

Company Overview

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 Atlantic Computers is a manufacturer of Servers and High-tech products

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 J

ason

 J

owers joined the Company four months back and he was responsible for thepricing strategy of the ´Atlantic Bundleµ i.e (A package of the Tronn server and PESAsoftware tool)

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 The Tronn was developed mainly for the emerging US market opportunity for basic webservers

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 The ´Performance Enhancing Server Acceleratorµ (PESA) would allow Tronn toperform four times faster than its usual speed for standard procedures and hence thebundling made sense

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Existence of 2 market segments - High Performance and Basic Servers

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 Atlantic has 20% market share in High Performance Servers with Radia being premierproduct over 30 years

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 An emerging market for basic servers is coming up in the late 1990s

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Decided to introduce the Basic server into the market by 2000 with the belief that it won·t be seen as a substitute of the High Performance Servers

 Advantages of PESA & Tronn

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PESA ² will improve Tronn speed by 4 times

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N

eed to purchase fewer servers

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L

ower annual electricity charges

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L

ess software licensing fee

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L

ess labor costs

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Customer segments which will gain advantage by using PESA ² Customers in web server& file sharing application segments

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