Atlantic computer case analysis. Atlantic Computer Case analysis 2022-10-14
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Atlantic Computer is a manufacturer of servers and high-end workstations. The company has two main product lines: the traditional product line, which includes the mid-range Tronn server and the high-end PESA server, and the new "Performance Enhanced Server and Workstation" (PESAW) line, which includes the low-end JAZZ server and the high-end PERFORMa server.
Atlantic Computer is facing a difficult decision regarding the pricing of its new PESAW products. The company must decide whether to price the PESAW products competitively with similar products from its competitors, or to differentiate the PESAW products and price them at a premium.
One option for Atlantic Computer is to price the PESAW products competitively with its competitors. This would allow the company to penetrate the market quickly and gain market share. However, this strategy may also result in lower profits, as the company would be competing on price rather than differentiation.
An alternative option for Atlantic Computer is to differentiate the PESAW products and price them at a premium. This would allow the company to capture a higher profit margin, but it may also result in slower market penetration and lower market share.
Ultimately, the decision that Atlantic Computer makes will depend on a variety of factors, including its overall business strategy, the competitive landscape, and its target market. If the company is focused on maximizing short-term profits, it may choose to differentiate the PESAW products and price them at a premium. On the other hand, if the company is more focused on long-term growth and market share, it may choose to price the PESAW products competitively.
In conclusion, Atlantic Computer faces a difficult decision regarding the pricing of its new PESAW products. The company must weigh the potential benefits and drawbacks of pricing the products competitively or at a premium, and make a decision that is in line with its overall business strategy and target market.
Atlantic Computer Case Study Case Study Solution and Analysis of Harvard Case Studies
First, there is the segment for High Performance Servers, which represents those who take on complex applications such as supply chain managements and business intelligence. Marketing Management Section 5 Group AD-1 Introduction: Atlantic Computers is manufacturer of servers and other high tech products. Matzer is not going to like of Atlantic Bundle. As can be seen in Exhibit 2, there is a noticeable difference between basic servers running with and without the PESA software. And the buyer power is low if there are lesser options of alternatives and switching.
As people will be unaware of the capabilities of PESA they would never prefer buying it and letting go the famous Zink. As a result, Dell was able to keep their inventories moving fast, which significantly lowered the costs and risks of having to manage large inventories of finished products. In addition, users also need to do research on the companies before do the online shopping because it has many fake website that take the payment without posting the products. STEP 10: Evaluation Of Alternatives For Atlantic Computer Case Study Case Solution: If the selected alternative is fulfilling the above criteria, the decision should be taken straightforwardly. With this they should also focus on the divisibility of the product.
In addition, since we are marking up our products at 30%, we will guarantee a profit of at least 30%. The brick and mortar stores were a loss because Amazon grew quickly and backfired because they took customers for granted. If the goods and services are not up to the standard, consumers can use substitutes and alternatives that do not need any extra effort and do not make a major difference. It is the perception of the consumer, however, that software tools are usually free. There is a new software tool developed by the company, Performance Enhancing Server Accelerator PESA , which would allow the Tronn to perform four times faster than its standard speed. One is duplicating that is direct imitation and the other one is substituting that is indirect imitation.
Oct 03 Atlantic Computer Case childhealthpolicy.vumc.org
Additionally using the competitive-based pricing option opts for a price-war against competitors such as Ontario, which may not be a good option for Atlantic. . Success of the new product launch is in the hands of the server and PESA being sold as a bundle. For this Atlantic Computers planned to use first and second …show more content… Value based pricing: This type of pricing strategy is mostly used when the product or service is unique and highly differentiated. After reading the case and guidelines thoroughly, reader should go forward and start the analyses of the case. The author of this theory suggests that firm must be valuable, rare, imperfectly imitable and perfectly non sustainable.
Therefore, it is necessary to block the new entrants in the industry. However, imitation is done in two ways. COSTLY TO IMITATE: the resources are costly to imitate, if other organizations cannot imitate it. Even, the competitive parity is not desired position, but the company should not lose its valuable resources, even they are common. Atlantic would derive market portion under this path as the monetary value is low comparative to the benefits the client receives. However, resources should also be perfectly non sustainable.
However, the problem should be concisely define in no more than a paragraph. The first reason is that the other pricing strategies only offer short-term benefits to the bundle whereas the value-in-use offers several long-term cost benefits, such as durability, quality of technology, long-term application, and other economic and social benefits of the product. Eliminating these unnecessary trips and efforts will increase the organizations bottom line. STEP 9: Selection Of Alternatives For Atlantic Computer Case Study Case Solution: It is very important to select the alternatives and then evaluate the best one as the company have limited choices and constraints. These benefits can be used as a unique selling-point and an advantage against competitors. Before considering the price of B33, Billing Boats AS has to think about the challenge of B29 and market popularity both of these two boats. When examining the stock option details, you noted that Options R Us had a stock option plan, the ORU 2007 Plan, and Stock It had a stock option plan, the SI 2010 Plan.
But the thing is, it is a ground stone to enlarge the market share in the long run, so it would better not to harm the revenue to reach that figure. And its ratio with corruption and organized crimes. Continuing with the tradition and norm of free package. Value in use pricing Savings to CONSUMER per unit On cost of TRON against The Atlantic Computer Case The Atlantic Computer case is one in which we are asked to suggest a price for the Tronn servers and PESA software tool, specifically for the exemplary customer, DayTraderJournal. Clear yourself first that on what basis you have to apply SWOT matrix. The company is known for supplying top-notch.
RecommendationThe company should continue with the free PESA package path. Information technology department has to set aside time and effort in specifying new systems and traveling to offsite locations to deploy them. The products are considered top of the line, having high quality and reliability. As far as I am concerned, they may not react to the current change. The Basic Segment included companies which need basic computing capability to perform simple, repeatable tasks, which had a market demand of 50000 units in 2001 and 36% growth annually through 2003.
RARE: the resources of the Atlantic Computer Case Study company that are not used by any other company are known as rare. After defining the problems and constraints, analysis of the case study is begin. In addition, alternatives should be related to the problem statements and issues described in the case study. CASE ANALYSIS: ATLANTIC COMPUTERS-A BUNDLE OF PRICING OPTIONS SUBMITTED BY: KRITIKA JAIN PG20112055 Atlantic computers are the largest manufacturer of servers and other high tech products with a 20% market revenue share in the segment. Further, everybody likes subscription pricing because it means fewer budgetary issues get in the way of procuring the new application. The reasons that resource imitation is costly are historical conditions, casual ambiguity and social complexity. Providing two undesirable alternatives to make the other one attractive is not acceptable.