Atlantic Computer Case
Introduction: Jason Jowers, who had recently been hired by the computer manufacturer,
Atlantic Computer, needed to devise a pricing plan for the companys newest products: The
Atlantic Bundle. This bundle contained the Tronn server and its corresponding software,
the PESA. After an initial marketing meeting with a few key players, Jowers had input
from the head of the server division (Matzer), the director of the divisions R&D team
(Jones), and the director of new product marketing (Fowler). In addition, Jowers also
needs to take into consideration the thoughts of the sales department, lead by Jairo Cadena.
Atlantics biggest competitor is Ontario Computer, Inc, which is a cost cutter in the
industry, and Atlantic Computer needs to bear in mind the customers and products that
Ontario is after as well.
External Analysis: The need for internet servers in Americas workplace is a growing
market, with several different segments. First, there is the segment for High Performance
Servers, which represents those who take on complex applications such as supply chain
managements and business intelligence. On the other hand, there is need for servers to
complete basic, repeatable tasks, such as browse the internet. Both segments are expected
to grow, but the segment needed basic computing capabilities is growing at a much faster
rate.
Ontario Computers has been the leading company for servers for a long time, mainly
because of their ability to sell at low price. They cut costs because they only sell online
and have mastered the supply chain process to minimize costs. They claim to not have the
best product, but the most flexible and innovative supply chain possible. This is both a
threat and an opportunity because customer may be drawn to them because of the low
price, but Atlantic can capture the best product reputation that hasnt been dominated by
Ontario Computers yet.
Customers looking for the basic server application are very concerned with price, as they
are usually not the ones running the highly complex applications. However, a basic server
runs up electricity bills and software license costs, which are known as possession costs.
Minimizing these costs as well as the acquisition costs are important to customers in the
basic server segment. Moreover, customers in this segment are interested in sales support
and want their servers to be able to handle information requests from websites and have
information readily available to the employees. This is an opportunity for Atlantic because
