In addition to competitors, Atlantic Computers recognized the emergence of the Internet and along with that, the need for basic servers, which had not been a major part of their operations. Based on the fast growth of the internet and with it the proliferation of corporate websites and file sharing systems, huge demand is predicted in the basic server segment market over the next few years. It could affect to more consumers easily. In spite of the fact that cost-in addition, rivalry based, and business as usual estimating are the most widely recognized means by which firms set up costs for their offerings, these methodologies may keep firms from completely understanding the advantages that are because of them. However, the logic seems flawed as customers would not have viewed the basic server as a substitute to the high-performance servers internal weakness, Appendix A.
The primary benefit is that the approach is customer focused. Strengths The biggest strength of the company was its ability to develop unique products and services that are uncommon with the recent product line of other companies. Because Atlantic is penetrating new market segment than…. Initiation: Developing the Business Case The Hidden Business Case Risk Management The Collective. What's more, to generation of the refreshments, the PepsiCo likewise creates prepared to drink tea and espresso.
Atlantic Computer, a leading player in the high-end server market, has detected a marketplace opportunity in the basic server segment. They have seen great success in the last 30 years since they have been competing in the market. Atlantic Computer: Case Study Questions Essay Sample 1. They have developed a new server, the Tronn, to meet the needs of this segment. They have four main options: 1.
On the other hand, there is need for servers to complete basic, repeatable tasks, such as browse the internet. These include the reactions of competitors, customers, and stakeholders within the firm. Threats Recommended Solution Lowest priced option Does not take into account the entirety of the costs associated with the server Fails to capture the total value of the product Option 2 Charge a price equal to what the customer would pay for four Ontario Zink servers Based on the fact that customers would want one Atlantic server unit vs. How are customers in your target market likely to react to your recommended pricing strategy? What response can be provided to overcome any objections? Atlantic Computer: Case Study Strategic Management Mitchell D. This case relates to the pricing of the Atlantic Bundle, focusing on the company DayTraderJournal.
So one might ask how did. And it is fortunately that the new marketing grows so fast that could bring large profits for the company. How is Matzer likely to react to your recommendation? Their brand equity is an important factor to the success of the bundle. But as mentioned above our goal is a ground stone to grow in the long run, it is better to choose the price making more profit with similar figure market share basis. But situation in basic segment and high performance segment is different, we have to apply different marketing strategy each other. Questions Covered What price should Jowers charge DayTraderJournal.
Atlantic Computer, currently having a 20% market share in the High Performance Server market, has decided to expand their product range and enter the Basic Segment market. Cost-based pricing is the best choice for Atlantic Company, because its moderate price makes company get high market share in the beginning and moderate profit for first year. The price is justified and the customer will perceive higher value for the price. This would allow to increase the sales volume by offering the attractive commission offers to the sales force of the company. We suggest that possibility as our goal to pursue. Our strong competitor, Ontario, has already half of the market share in basic server segment. Their response to the projected 36% compound annual growth in demand for Basic Servers… 1535 Words 7 Pages Atlantic Computer is a large manufacturer for servers and other technology products.
Atlantic Computer, currently having a 20% market share in the High Performance Server market, has decided to expand their product range and enter the Basic Segment market. Atlantic Computer Group 11 2010123281 Lim, Min A 2010123380 Lee, Yoon Ji 2010101026 Na, Hyeon Jung 2010123031 Park, Jae Eon?. In addition, Jowers also needs to take into consideration the thoughts of the sales department, lead by Jairo Cadena. And in recent stage, the company has two segments including the basic market and the new market. To overcome these impediments, we suggest to set the price based on the calculation of cost-based pricing and to abandon the original direct marketing methods and accept the indirect ways like online-marketing and the advertisement through diverse media. Arrive at price based on value-in use pricing.
The product was created to produce a basic server without creating a substitute product to the high performance servers. What response can be provided to overcome any objections? The conclusion was based on the benefit to customers of being able to purchase fewer servers and the resulting savings internal strength, Appendix A. By the third year of the forecast, the basic server market will make up approximately 30% of total units sold. Under this route, the company will earn more profit per bundle sold. Additionally, minimal effort is required to determine the price.
In addition, Jowers also needs to take into consideration the thoughts of the sales department, lead by Jairo Cadena. Recto Avenue Corner Quiapo Blvd. Third, set a price based on a cost-plus approach. Atlantic Computer is a large manufacturer for servers and other technology products. Furthermore, it is important to study events and actions that lead to problems and disasters. Continuing with the tradition and norm of free software, staff would not have to be retrained and customers will not feel alienated.
The primary benefit is that the company will be able to initiate online sales which will reduce training costs, salaries, and commissions and will make up for the lower profit margins earned. Under this route, the company will earn more profit per bundle sold. This approach does not take into consideration the value advantage received by the customer. The basic server segment is a newer segment with strong forecasted growth of 36% external opportunity, Appendix A. Additionally considers the investigation of the difficulties encompassing the execution of a quality being used estimating technique.