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Grp 17_Atlantic Computer Case Study

Grp 17_Atlantic Computer Case Study

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Published by Amitesh Priolkar

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Published by: Amitesh Priolkar on Sep 05, 2010
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 Atlantic Computer CaseStudy
Marketing II Assignment 
Group 17  AMITESH PRIOLKAR (2009009)MANISH ARORA (2009022)NEELAY THALY (2009026)SAGAR KHICHADE (2009040) ALOK SHETTY (2009047)SIDDHARTH CHAKU (2009048)
 
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
y
 
 Atlantic Computers is a manufacturer of Servers and High-tech products
y
 
 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)
y
 
 The Tronn was developed mainly for the emerging US market opportunity for basic webservers
y
 
 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
y
 
Existence of 2 market segments - High Performance and Basic Servers
y
 
 Atlantic has 20% market share in High Performance Servers with Radia being premierproduct over 30 years
y
 
 An emerging market for basic servers is coming up in the late 1990s
y
 
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
y
 
PESA ² will improve Tronn speed by 4 times
y
 
N
eed to purchase fewer servers
y
 
L
ower annual electricity charges
y
 
L
ess software licensing fee
y
 
L
ess labor costs
y
 
Customer segments which will gain advantage by using PESA ² Customers in web server& file sharing application segments
 
 
 
Two market segments 
Segment size Projecteddemand(1
st
 yr)Projecteddemand(next 2yrs)AtlanticMarketshareOntarioMarketShareHighperformanceservers
Largest 200000 units 3% annually 20%
Basic Servers
50000 units 36% compoundannual growthZink 50%
C
ompetitor:
y
 
O
ntario Computer Inc.
y
 
Majority sales generated by online trade.
y
 
Business model based on operational excellence ² so drove out many non value-addedcosts so could compete largely on price.
Cu
stomers
Sample Web Server Basic Server (New SME)
Cu
stomer
 
 This customer will be the target customer as they stand to benefit the maximumfrom Tronn with PESA
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