Atlantic Computer

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Case Study : Atlantic Computers

Index:
TopicSequence

Company Overview

Price Strategy adopted..........................................................................1.0 Matzer's reaction to your recommendation...............................................2.0 Cadena's reaction to your recommendation..............................................3.0 Customer's reaction..............................................................................4.0 Responses to objections........................................................................5.0

Company Overview:
* Atlantic Computers is a manufacturer of Servers and High-tech products. * It currently has a 20% market share in High Performance servers. * Observing the trend in the basic server market, Atlantic computers decided to launch a basic server "Tronn" in the market. * They also developed a PESA (optimising software application) which will increase the performance of server processing. * This case study is about developing a pricing strategy for 'Atlantic Bundle' - the new Tronn server with PESA software before the SME tradeshow.

Questions:
Q1: What price should Jowers charge Daytrade.com for the Atlantic Bundle. Think about the top-line revenue implications from each of the four alternative pricing strategies. Approximately how much money over the next three years will be "left on the table" it the firm were to give away the software tool for free versus utilizing one of the other pricing approaches. We believe going for option 4 will be strategically more successful for the company. We recommend the price to be slated at 2647. The expected net profit accumulated over three if we go for option 1 will is $ 9785160 The expected net profit accumulated over three if we go for option 4 will is $264920.

Q2: How is the Matzer likely to react to your recommendation? Matzer was of the strong view point that the new basic software should be...
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