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 Computers Case Study_
Pest analysis is very important and informative. Second, the threat of new entrants for Microsoft is low, since new company will require large amount of capital to be invested to enter the IT industry dominated by a few large companies. These five forces includes three forces from horizontal competition and two forces from vertical competition. Also all these Based on exhibit 1 and 3, these costs are shown below Input information From exhibit 1 and 3 Selling Selling Price of 1 Ontario Server 1700 Development cost of PESA Software 2000000 Administrator Annual Cost for 40 basic servers 80000 Electricity cost per server Atlantic Computer: a Bundle of Pricing Options Question 2 Think broadly about the top-line revenue implications from each of the four alternative pricing strategies. How are the customers in your target market likely to react to your recommended pricing strategy? In this model, five forces have been identified which play an important part in shaping the market and industry. However, resources should also be perfectly non sustainable. Fourth, value-in-use pricing method could be used.
Atlantic Computers Case
After introduction, problem statement is defined. 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. STEP 4: SWOT Analysis of the Atlantic Computer Case Study HBR Case Solution: Pest analysis SWOT analysis helps the business to identify its strengths and weaknesses, as well as understanding of opportunity that can be availed and the threat that the company is facing. This was therefore considered to be the reason as to why the company was able to sell their microprocessors at expensive prices. The strengths and weaknesses are obtained from internal organization.
Atlantic Computer Case Study Case Study Solution and Analysis of Harvard Case Studies
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. Furthermore, we can avoid potential loss of critical organizational documents which could harm future business… Microsoft Competitive Analysis First, intensity of rivalry among existing competitors for Microsoft is high, since its major competitors, Google and Apple also produce software and hardware, as well as operating system. To capture the new segment, they are introducing a new server called, Tronn. One primary drawback is a client will be charged a higher monetary value even if they do non necessitate the PESA tool. Tronn servers + PESA software tool? Atlantic will lose market portion under this path at the higher monetary value.
