Atlantic Computers Case

24
Team Case Solution By Jared Scrimieri

Transcript of Atlantic Computers Case

Page 1: Atlantic Computers Case

Team Case Solution

By Jared Scrimieri

Page 2: Atlantic Computers Case

Table Of Contents

Executive Summary 2 Introduction 3 Corporate Mission 3 Situation Audit 3 Neutral Factors 4 Competitive Environment 4 Company Environment 5 SWOT 6 STP 6 Assumptions 7 Problem/Decision Statement 8 Alternatives 9 Criteria 10 Recommendations 12 Market Tactics 13 Product 13 Placement 16 Promotion 17 Price 19 Control 22 Timing 23 References 24

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Executive Summary

Atlantic Computer is a company currently competing in the server market. Radia is

Atlantic Computer’s primary product. Radia is a high performance server that has helped

Atlantic capture and maintain the leading market share in the high performance segment.

Atlantic has recently developed a new product in an existing market, the Tronn basic server, to

compete with Ontario’s Zink server. Ontario prides itself on customer intimacy and operational

excellence. Tronn offers the consumer up to 4 times the speed as the original basic server with

their new program tool, the PESA.

Atlantic must now decide which pricing strategy to employ with the release of the Tronn

server accompanied with the PESA software tool. The firm can use a status-quo strategy and

offer the product for the same price as it has in years past and give the PESA tool away for free.

Atlantic can offer their product at 4 times the price of the Zink server, given that it is a benefit to

the consumer. A cost-plus strategy can also be used to keep prices low for the consumer, and

finally, a value-in strategy and split the monetary benefits of our product with the customer can

also be used.

Although offering the product with a status-quo strategy would encourage our existing

customers to continue purchasing our product, much of the potential profit of our product would

be lost and we would be covering R&D costs without additional revenue. If we were to

aggressively price our products equal to 4 times that of Ontario’s Zink, we would be giving up

the majority of the market share, cutting out the customers with the hope to save money when

purchasing the product. Cost-plus pricing would allow us to capture a large market share, but our

price still wouldn’t compete with Ontario’s price and we would not be maximizing our margin’s

potential. Value-in pricing is our suggested pricing strategy because we are not only making the

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customer aware of the monetary benefits of our product, we are also maximizing margin and

market share potential. The monetary and labor cost benefits of the Atlantic Bundle will be our

main tactic when push-promoting our product.

Introduction

Atlantic Computer is a large manufacture of servers and other high-tech products that is

located in Amberville, New York. Atlantic Computers is known for providing premium high-

end servers specifically the Radia which we have been selling for 30 years. Atlantic Computers

is developing a new “bundle” that is going to include the new Tronn server and the PESA

software tool and needs to develop a pricing strategy for this new Atlantic Bundle.

Corporate Mission

Atlantic Computers is one of the strongest players in the servers and high tech product

industry. Atlantic currently has 20% of the revenue market share, but that is expected to increase

with our new “Atlantic Bundle”. Our new server, the Tronn and the new software PESA are

going to help us enter into a new market that we are very excited about. With the help of our

amazing team we will be able to find a pricing strategy that will fit this new server and software

well. Our goal is to have this pricing strategy set by the time the trade show comes around in

two weeks.

Situation

Being the largest player in the overall Computer Industry Atlantic Computers competes

in high performance servers and basic servers. With there being two major market segments the

demand is projected to grow 3% annually for the next two years. Having our new basic server,

the Tronn will be competing directly with Ontario Computers Zink the demand may fluctuate,

but being in the market for 30 years, this shouldn’t be an issue as we are already well known. As

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our demographic for our products is made primarily of small and medium sized businesses, these

new products will be of great benefit.

Atlantic Computers has been generally known for giving away the software to go with

our systems, but the Tronn and PESA software will be sold as a bundle, thus the software may or

may not be given away at no additional cost. We believe that high-end servers and basic-servers

will not be viewed as substitutes by customers. This new system will be great for businesses

because it will eliminate the need of four separate servers down to only one.

Neutral

Although we may be charging for the software to go with this system opposed to giving it

away as we did in the past, we are still trying to make this as affordable as possible. From

surveys we have conducted it is suggested that many of the consumers are spending unnecessary

money on electricity fees that we will be able to prevent with this new bundle. With many

different costs being taken into consideration while pricing this bundle we are aiming to be

extremely competitive in the pricing with our competitors.

Competitive

Our main competitor here at Atlantic Computers is Ontario Computer Inc. Ontario is

known for their efforts in their low-end basic server market with their model called Zink. The

product holds 50% of the market share in the basic server market. The issue is that the Zink line

performs at about the same level as our Tronn line does, that is why we are coming up with a

pricing strategy to become more competitive with them in the basic server market. The rest of

the basic server market is made up of other smaller companies. Unlike Atlantic, Ontario does a

majority of their sales online and never actually meets the consumers face-to-face. Ontario has a

business model that is based on operational excellence, making it easy for them to drive out all of

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the unnecessary costs, making their process extremely affordable and competitive. Ontario is

known for, “providing leading technology to customers via the most flexible and innovative

supply chain strategy possible.” This makes them the leader in the basic server market because

they focus on that instead of focusing on being the leading innovator in product

technology. There are many different pricing strategies that we will discuss later on that will

make us competitive with Ontario in the basic server market.

Company

The new products that we are going to be launching here at Atlantic Computers is the

Tronn, which is our first basic server, and the PESA, which is going to be sold along with the

Tronn as a bundle, the “Atlantic Bundle”, previously mentioned. The PESA will give the Tronn

the ability to operate four times faster than its normal speed. This has been designed to make

frequently requested information more easily accessible. Jason Jowers has been assigned the

task to develop the pricing strategy of our new bundle and has been discussing different options

with many of our other colleagues to ensure that we are offering the correct one. Our team is

taking a lot of different things into consideration while developing a pricing plan and marketing

program. One thing that puts us miles ahead of our competitors is that we have an extremely

positive brand image and excellent customer reviews pre- and post-purchase. Being the leading

company in the computer industry with 20% of the market share we also have a cash flow

advantage.

Our current marketing team is known to operate on tradition as opposed to innovating

their strategy. Besides our old-school approach to marketing, our online marketing and sales are

almost non-existent. This is a major problem because our major competitor Ontario is primarily

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based online. Lastly, we have been known to give away software, which is why pricing this

bundle is difficult to determine.

STP

There are two main segments in the market, the first one, the largest, is the high

performance servers, it represents the traditional use of servers to run complex applications. The

second, newer segment is the basic servers. Atlantic Computer selected these two segments

based on the projected demand of the segment. It is expected that demand will be 200,000 units

next year with a projected growth of 3% annually for the following two years in the high

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performance segment. The Basic Servers segment was also chosen because the market is

projected to demand 50,000 units in 2001, and it is projected to have an annual compounded

growth of 36%.

There are two types of companies that need the two different systems. The first type, is

the larger company that needs server power, this type of company will be involved in supply

chain management, enterprise resource planning, and business intelligence. The second type

needs the basic types of servers as they focus on basic computing capabilities to perform simple,

repeatable tasks such as, showing website information on the internet and so on.

Assumptions

1. The Tronn server would stay the same, but the PESA software would be added to

increase performance. Installing PESA would not cause any problems to the Tronn server

and performance would not suffer. PESA will be attached to 50% of all Tronn servers.

2. With the increase in performance needs, customers need faster, more reliable and better

servers.

3. Customers that are on a budget and will look to save money, will be motivated to invest

in the Tronn server without PESA and still be able to have a performance four times

faster than their other options.

4. Ontario Computer has a 50% market share, and the market growth is projected at 36%,

which means that there is room for growth and by having a product that can compete

against Ontario Computer’s Zink, Atlantic Computer’s market share can increase too.

5. It is believed that high performance and basic performance are not viewed as competitors,

as there are two segments of consumers that need the different products based on their

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different needs. With a look to the future it is possible that companies might have

different needs going forward, and cannibalism could become a possibility.

6. Atlantic Computers is a strong player in the high performance segment with 20% market

share. With the new basic server segment growing at a very fast pace, Atlantic Computers

needs to closely monitor the new segment and find a way to become competitive in that

segment too.

Problem/Decision Statement

Atlantic Computer must determine the demand for the current market. There are two

market segments for Atlantic Computer to compete in which include high performance servers

and basic servers. Currently high performance servers are the largest market segment and have a

projected demand of 200,000 units for the first year. The projected growth for these servers is

estimated at 3% per year, for the upcoming years. The demand for the high performance server is

more than the basic server, which is 50,000 units, however its projected annual growth is 36%,

which is much higher when compared to high performance servers. Atlantic computer has one

main competitor, when it comes to basic servers. The competitor Ontario Computers, leads the

market with its Zink server. Atlantic Computer is to find out how to penetrate a market that is

currently led by a strong competitor, and has to decide before the SME trade show on the best

pricing strategy for its product Tronn, which may or may not include the PESA software.

Atlantic Computer needs to decide if it wants to charge for the software or give it out for free.

They also needs to decide what pricing structure to adopt for the high performance and basic

servers. There are four pricing strategies that Atlantic Computer is considering which are

Competitive Parity Pricing, Status-quo Pricing, Value-in-Use Pricing and Cost-Plus Pricing.

Alternatives

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Given the problem statement, Jowers was able to narrow the alternatives to four pricing

strategies that could help them gain a competitive advantage over Ontario Computers.

• Continue with the current pricing strategy of charging only for hardware and giving the

PESA software tool away for free.

• Charge a price equal to what the customer would pay for the four Ontario Zink servers.

• Implementing a cost-plus approach to price PESA based on the software tool’s

development cost.

• Lastly, there is the option of using the value-in price strategy which is an attempt to

capture a portion of what a customer would save by buying a firm’s product.

Jowers must recognize the opportunity in further penetrating the market that is dominated by

Ontario with 50% market share, and understands that they are the direct competition with the

launch of PESA. Although several others on the marketing team may feel the need to stick to

tradition with the company, Jowers should understand that by selling only the hardware and not

the software he will be unable to penetrate the High Performance Server market as easily placing

too little of value on PESA. For this reason, he must differentiate the company and focus on the

importance of the value in the PESA software therefore sticking with company tradition and

charging only for hardware would not seem fitting. The second option of charging a price equal

to four Ontario Zink servers wouldn’t make much sense either because Ontario already has 50%

of market share among High Performance Servers as well as a consistent brand in this market

and there would be no reason for consumers to be convinced to buy the PESA over 4 Zink

servers if they already trust the consistency of the Ontario brand. Jowers must recognize that

setting the price the same would not differentiate the company enough to penetrate this market

without something else to set them apart. After narrowing it down to the three pricing strategies

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of status quo, cost-plus or value-in pricing. The most suitable case might come down to the

combination of both status quo and value-in pricing, since the markets and market share leaders

vary between server markets.

Criteria

Pricing Alternatives Profitability (60%) Benefits to Customer (40%) TOTAL

Status Quo 2*.6=1.2 8*.4=3.2 4.4

Aggressive 9*.6=5.4 1*.4=0.4 5.8

Cost-Plus 6*.6=3.6 7*.4=2.8 6.4

Value-In 8*.6=4.8 6*.4=2.4 7.2

The Critera was rated on a scale from 1-10, with 10 being the best alternative rating, 1

being the worst. By far, the most important criteria when weighing our alternatives was

profitability. By bringing our customers the cheapest available Tronn bundled with the PESA

software, the price is much cheaper than 4 Zink servers. There was little doubt that Value-in

pricing scored higher in profitability than the other pricing strategies. It only made sense for us

that we created a product that would be cheaper and more innovative than Ontario’s Zink

because it would create a pricing competition that Ontario’s brand image in the basic

performance segment could not maintain on image alone. By driving down the price, we will

increase our market share in the basic server market and will be better able to position ourselves

as the most innovative brand in the basic server market. Since we are competing in both the high

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performance and basic server market, we felt that putting a price on the software was important

for Atlantic Computers to show the customer the potential value in the Tronn. For this reason,

continuing to not charge for our software didn’t make sense, status quo was not the ideal price.

Next, we determined it would not be beneficial for Atlantic computers to simply set the price the

same as 4 Zink servers. Although it would yield the highest profits, a lot of potential customers

would just continue buying 4 Zink servers for the same price because of the brand identity that

Ontario has established. We then evaluated the cost-plus option and the value in option and

quickly determined Atlantic Computers has much more potential in increasing profits by using

the value-in approach. The cost-plus alternative wouldn’t produce as much profit for the

company as value-in and with these findings it was obvious which path to take. These two

criteria are both of value when deciding the pricing strategy, the size of the market, the price, and

their ability to maintain good customer relations will be required in order to penetrate Ontario’s

Zink server, and it should be easily doable with a lot lower pricing and a bulk purchase of an

Atlantic Bundle as opposed to buying 4 of the competition’s servers.

Recommendations

Atlantic Computer should price the Tronn basic server using the value-in pricing strategy

because it would maximize profits while still undercutting the competition’s (4 server) price.

Value-In pricing will give the customer a monetary value of what they are saving by choosing

the Atlantic Bundle. Value-In pricing will also capture a portion of Ontario’s market share

because buying a Tronn server loaded with PESA will offer the same performance as 4 basic

servers. Using the value-in pricing strategy the Tronn server will sell for $4,500 (not including

the savings from admin costs). 4 Zink servers would cost $6,800, so we are saving the customer,

and profiting $2,300. Atlantic Computer should emphasize their admin savings for promotion.

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With PESA, Tronn is reducing administration costs up to 400% within the basic server market.

To take the pricing strategy a step further Atlantic Computer should offer the Atlantic Bundle

using value-in pricing, and sell the basic server Tronn (without PESA), using status quo pricing.

Radia, the High Performance server, should be priced using a status quo strategy. Since

Atlantic Computer is already a dominant force in the high performance server market, keeping

the price consistent makes our brand appear consistent. Our product was already designed with a

product leadership strategy, and for that reason our product has been differentiated and can sell at

a premium. Using cost-plus pricing would lower company profits. We would be selling the

product for less than the year before (which we’ve estimated demand off of). Since there was no

information on the competition, value-in and the competitive-aggressive pricing strategies are

non-applicable to the high performance server. Using an aggressive pricing strategy could also

be an option since the basic servers are not substitutes for high performance servers. Depending

on the competition, and what other high performance servers were available, Atlantic Computers

may be able to add an additional premium to the high performance price, but maintaining your

customer base is important and for that reason, status quo pricing would be wisest with limited

information.

Market Tactics/ Implementation

Product

Atlantic Computers offers Tronn and Radia. Atlantic Computers will attach 50% of

Tronn Servers with PESA, a software tool that improves Tronn’s capabilities up to 4 times in

comparison to Zink.

Product Class

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Tronn is a server targeted at the basic server segment. Radia is a server targeted at the

high performance server segment. Atlantic Computer holds the leading market share in the high

performance server market. In the basic server market, Zink, Ontario’s basic server, holds the

majority of the market share and is Atlantic Computer’s largest competition.

Product Life Cycle

Tronn is a new product and currently in the growth stage of its product life cycle. The

demand for the basic server is increasing faster than the demand for the high performance server.

Radia is in the maturity stage of its product life cycle and is still slowly increasing in demand.

The Atlantic Bundle is currently in the introduction stage.

New Product-Development requirements

The design of PESA cost the company $2,000,000. This cost will be incorporated in the

price of the Tronn server. The design of PESA, and the value-in pricing strategy will supplement

the firm an additional $530,000,000 as opposed to the Tronn without PESA for $2,000/ server.

Atlantic Computers should employ a comparative parity advertising strategy with the Atlantic

Bundle to match Zink’s market awareness, or a strategic advertising goal should be used with a

focus on the basic server market share.

Product Liability, Safety & Social Responsibility

With the massive profits the company should experience over the next 3 years, Atlantic

Computer should consider taking on additional costs to dispose of waste and manufacture with

society in mind. This may increase Atlantic Computer’s market share because some people will

choose companies who take social responsibility over those who don’t. Atlantic Computer may

consider saving money in case of emergency such as; law suits, new product or industry taxes,

environmental clean-ups etc.

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Specifications of Product

Tronn is a basic server, but with the software tool PESA, Tronn runs up to four times

faster than the leading competition, Zink. Tronn will cut electricity, server & admin costs by

200-400%. Radia is a high performance server that brings in the majority of Atlantic Computer’s

revenue and is not a substitute to Tronn.

Supporting Customer Service Needs

Although our company is not known for customer intimacy like Ontario, we might

consider using additional revenue earned from the PESA tool to offer better customer support.

Problems may arise in the future from the use of the PESA tool and Tronn software being they

are fairly new. Being a step ahead of the customer support game will better secure our market

share, as opposed to customers switching to competitors out of frustration with our product.

Warranty

The average life of the Atlantic Basic server is 3 years. Offering a 1-year warranty might

yield a 5% return rate. This would too-greatly reduce profits to consider. Radia is a consistent

product and I feel a warranty with it might positively affect the Atlantic Computer and Radia

brand, however, Tronn is not a good candidate for a warranty at this period in its product life

cycle.

Branding

Atlantic Computer should continue to brand Radia and Tronn separately. Atlantic

Computer should focus on innovating the server industry and differentiating their brand within

both, the basic server, and high performance server markets. Most customers have progressively

considered good customer service a need as opposed to a want with technology. Atlantic

Computer should consider investing in customer intimacy next to better promote their brand.

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Packaging

Radia and Tronn’s innovations & product leadership speak for themselves so packaging

does not need to be too flashy. The utilization of the color red and italicized text may denote the

firm’s product’s speed. A slogan involving speed on the package may also be beneficial. A big

4X for the PESA tool would convey the right idea. Altogether, the server market does not require

flashy packaging because consumers are making a relatively expensive purchase, and

informational packaging would make a better fit.

Cultural Sensitivity Issues

When offering the product in foreign markets the name’s meaning should be considered

in the target market’s language. To better convey meaning, PESA should be translated to the

language of the target market.

Product Line

Although PESA differentiates Tronn from the Basic server market, it still isn’t a

substitute for the high performance server, Radia. Both Radia and Tronn use separate branding

and offer different specifications, and therefore, are sold strategically as separate product lines.

Place

Objective

Atlantic Computer’s goal is to provide their customers with an innovative and fast server

in both the high performance and basic server segment. Atlantic Computer will make their

product available primarily through file sharing and web hosting websites.

Channels

Tronn and Radia servers will be offered via website and sold using the Sales Department.

A delivery system should be in motion, but the more of the process we can control, the more we

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will save on costs (given we can’t find a transportation partner). With additional profit earned

this year Atlantic Computer should consider their own delivery system. PESA is a tool that can

be offered via download on the website or preloaded before shipping. The utilization of file

sharing and web hosting websites will help our product reach the right segment.

Wholesalers/Retailers

A push strategy offering wholesalers and retailers bulk discounts and selling incentives

would be the best strategy for distribution of the basic server. With the use of value-in pricing,

extra profit margins will allow us extra revenue for this push strategy. Selling the products for a

consistent price is key for Atlantic Computer to maintain its brand, therefore, variable pricing

will not be made available for additional commissions. Atlantic Computer has been steady in the

server industry and is a known brand who should utilize a push strategy and greatly incentivise

their salesmen given the margins on the Atlantic Bundle. Atlantic servers will also be selectively

distributed since it is a more expensive purchase, and doesn’t belong in a generic store.

Discrepancies

Discrepancies will not be handled with a “The customer is always right” motto. Instead, a

customer support line should be offered to handle customer related issues.

Marketing Functions

Distribution, product management, pricing, selling, financing, promotion & marketing

management will all be handled by separate departments.

Promotion

Objectives

The goal of Atlantic’s promotions are to position the company to be viewed as tech savvy

and innovative. With additional revenue from growth in revenue in the coming years, customer

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intimacy is something our firm should choose to explore as well. The basic server market is what

we are trying to penetrate, so the PESA tool (4X) and Administrative savings per year ($20,000)

are going to be our main drivers of the Tronn promotions. The monetary value our product offers

our consumer is the main driver for our promotions.

Major Message

Our software tools will allow a basic Tronn server to run 4 times faster. Choosing our

server for your business will save your business $20,000 in admin fees. Reducing the number of

servers will also reduce your energy bill, not to mention you’re saving money on the number of

servers you are purchasing. Tronn will not only save businesses and consumers money, our

product prides itself on product leadership.

Promotional Blend

Advertising

File sharing and web hosting websites would be perfect channels to advertise through

because not only are we reaching the server market, but the internet is an affordable advertising

vehicle with huge reach. Since our server improves efficiency, our product will mostly benefit

businesses who are using excessive servers. Reducing the number of servers, space needed,

number of admin jobs and electricity gives our firm a competitive advantage. Technology

magazines may also be an efficient way to get the word out on our innovative product.

Personal Selling

Atlantic has used a personal selling tactic in the past and should continue. Since the

Atlantic bundle will offer larger margins than the firm has seen in the past, selling incentives

should be maximized through personal selling. Additional compensation will give our

salespeople extrinsic encouragement to perform at their optimal level.

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Sales Promotions

Promotions will primarily focus on product demos, which can be set up in stores or

online and will show the benefits offered by Tronn and PESA. Also, promoting the monetary

savings available to the customer through the Atlantic Bundle will be our most effective

promotional vehicle. Also, in the growth phase, additional revenue may be used to show the

differences between Tronn with and without PESA.

Publicity

Atlantic Computer should use social media sites to make the public aware of the Atlantic

Bundle. Positive word-of-mouth should spread given Tronn performs well at the tradeshow.

Interactive Media

The effectiveness of the Tronn server with PESA should be available where servers are

available with a display end cap. Also, the Atlantic website and social media sites would be a

great place to show off our innovative product and how beneficial PESA really can be.

Push/Pull Mix

A push strategy should primarily be used to encourage salespeople to sell our product.

Maximizing commissions will give our salespeople maximum incentive to sell our product.

Online ads should also be used on file sharing and web hosting sites to pull our customers in.

These ads can be relatively cheap so the majority of our promotional mix will be used to

incentivize our salespeople.

Price

Nature of Demand/ Cost Analysis

Atlantic Computer is the leading competitor in the high performance server market. For

this reason, Radia can sell at a premium price. When applying the cost-plus pricing strategy to

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Radia versus Status-Quo, we would actually be missing out on roughly $700,000 of potential

profit. For this reason, and since expected demand is based off of the status-quo pricing strategy,

selling the server for $11,000 (status-quo) would place the firm in a much better financial

position than $9,861.80 (Cost-plus). If we were on the bottom side of the market focusing on

capturing market share we might consider using cost-plus, but since we are the leading

competitor in the industry we should use an offensive strategy.

When looking at Tronn and the basic segment, we are an underdog and should focus on

capturing an increasing portion of the market segment and differentiate ourselves from the

leading competitor, Ontario. Since our product will offer basic server users additional

capabilities and cost savings we should consider all four pricing strategies. Offering our product

with a status-quo strategy would offer our company the least amount of profit but our brand

would strengthen. If the option was available, I would offer Tronn without PESA for status-quo

pricing and the Atlantic Bundle separately. Using an aggressive strategy and offering the Atlantic

Bundle for four times what a Zink user would pay would be unwise because one of our main

selling points is the ability to offer consumers our product at a cheaper rate than 4 servers.

Although this would net us the most profit, in the basic server segment we need to capture a

larger portion before we can use an aggressive strategy. Cost-plus pricing would allow us to sell

the Tronn server at $2,234.21. Although this is a good strategy to capture a greater majority of

the market share, value-in pricing will still save the consumer money and add greater value to the

PESA tool and Atlantic Bundle. Atlantic Computer should use value-in pricing and split all

savings with the consumer. Value-In pricing would allow us to sell the Atlantic Bundle at

$4,500. This is without incorporating the admin fees that businesses will save. Going with the

value-in pricing strategy will boost company profits an additional $480,000 over cost-plus

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pricing. Although there is room for price variability, we do not control a majority share of the

basic server market and should be careful not to use an aggressive strategy with our low market

share.

Price Level/ Impact on Customer

Although Zink will capture the portion of the market focused on spending the least

amount on a single server, Tronn will be considered by businesses using multiple servers and

administration because of the cost savings. Tronn has been priced to offer these consumers a

benefit when choosing our product while also increasing our profits. Consumers will be happy to

use our product, save money & save time which in turn, should boost our market share.

Tronn

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Radia

Control

Based on the pricing and projections to see where Atlantic is heading toward, our

company can be shown some promises in measure like break-even analysis, sales projections,

cash flow and income statements. According to the chart above, by having Tronn rather than

Zink there would be much more savings for the customer and we will continue to have higher

demands because of these savings. Especially when having four Zink server is equal to one

Tronn server. Sales projections are averaged at $400,000,000 or above, and with steady demand

of Tronn when the product itself is in the growth stage and hasn’t reached maturity, there will be

higher demand. Even when PESA is still in the introduction stage, it has much potential to

develop as a product. Our company is a large manufacturer of servers and other high-tech

products. With continuous positive image and customer satisfaction, savings on admin cost, and

post-sale customer satisfaction, Atlantic computer will definitely be able to control the market

with both highly efficient products. Our company must focus on training new engineers that can

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do set-up with different companies and analyze if there are glitches or problems during the

process, in that way our company could make slight adjustments so Atlantic’s clients can remain

loyal and satisfied to use the product.

Timing

For Atlantic computer to succeed with implementation, our board members must

emphasize on marketing and planning. They must create a viable and achievable schedule to

check off the to-do list to completion. Without having a list of accomplishments and goals to

meet quarterly, Atlantic won’t be able to meet the potential this awesome software tool offers.

Our company should be attending software conventions, in that way, the company could meet

potential clients and show to them the brand new software and the benefit both clients and

Atlantic would benefit from. By exposing more about our products and seeing their interest

through conventions, our company could be able to launch and be able to set up servers that

bring in inquiries and great interest in the convention. Our marketing team would be able to

meet the company's quarterly goals through check list. Our initial process would take about a

year to boom in the basic server segment, Consumers have the ability now to choose between the

basic server and the high performance server, and with the new software tool, Tronn will make

for a much more competitive product. Our promising products aren’t yet fully mature but still in

the introduction phase, our company must be actively updating with feedbacks from the engineer

that is setting up the server for our clients.

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Work Cited:

Neeraj Bharadwaj, John B. Gordon. May 28, 2007 “Atlantic Computer: A Bundle of Pricing

Options”