Atlantic Computer

Topics: Marketing, Computer, Pricing Pages: 6 (1315 words) Published: October 26, 2010
* Introduction and statement of purpose
Atlantic Computer Inc. is a large manufacturer of servers and other high end products and is presently the one of the biggest player in the computer industry. The company is planning to introduce a new product “Atlantic Bundle” into the market. The “Atlantic Bundle” consists of a new basic server Tronn and a newly developed “Performance Enhancing Server Accelerator” (PESA) software tool. Ontario Computer, Inc, which has majority revenue market share in the segment is Atlantic’s biggest competitor and differentiates itself with competitive pricing and innovative business solutions. A newly hired Product Manager, Jason Jowers, is responsible for developing a pricing strategy for the new product keeping in mind his peers inputs, customer needs, competition and company and industry norms. * Situation Analysis:

* External situation
The computer server industry is mainly divided into two segments: High-end performance servers and basic server. The high performance market segment is the bigger market segment (with 80% of the market) but is anticipated to increase at 3% for the next 3 years, whereas, the basic market segment, with remaining 20%, is expected to increase by 36% for the same period. Hence at the end of 3 years, basic market segment is expected to constitute 30% of the server market. Ontario Computers presently has biggest market share in basic server market segment and differentiates itself by * Internal situation

* Alternatives:
* 3 alternatives
* Pros and cons
* Recommendation
* Conclusion

Case Study (report and presentation format)
I. Introduction and statement of purpose
II. Situation Analysis:
a. 4 pages
External situation
b. Internal situation
III. Alternatives:
c. 3 alternatives
d. Pros and cons
IV. Recommendation
V. Conclusion

Appendix A
SWOT Analysis
* Strengths:
* Well established name in the industry: Atlantic Computers is large manufacturer of servers and is the largest player in the overall computer industry with 20% revenue market share in the high performance server market with its product “Radia” * Atlantic has a great reputation for providing top-notch, high quality products. * The company is also acclaimed for having highly responsive sales team with good post sales assistance program. * In the past, Company’s over arching strategy has been customer intimacy and product differentiation. * Being a big player in the industry Atlantic has a huge loyal customer base of which many customers are big companies. * Chris Matzer, head of the server division, had 20 years of experience in the field and was known as the veteran in the computer business. * The new software tool, PESA, developed by the company made the new server Tronn twice as fast as regular server for File sharing applications and 4 times faster for Web Server applications. * Weaknesses

* Even though Atlantic had good reputation, long history and good percentage of market share, with the new product they were entering a completely new market segment. * Tronn (Atlantic) had a higher cost per server than its biggest competitor Zink (Ontario) * Ontario’s majority sales are generated online, unlike Atlantic. Atlantic sales strategy does not seem to have the same amount versatility as Ontario. * Atlantic’s present sales force mind-set is to focus on hardware. * Opportunities

* Basic servers market was the emerging market with estimated 36% increase compounded annually for the next 3 year. With the increasing use of internet, it seemed that this was the right time to enter the market as the market size was neither too big nor too small. * The software tool PESA would help Atlantic gain a competitive advantage in the new market for its Tronn server. * Changing market trends – the trends for making website server was...
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