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Atlantic Computer Case Study

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Team 7 Atlantic Computer2011. december 16.

Atlantic Computer Case Study
Group 7 Olivér Szabó Péter Hrobár Written by János Wicha

1

Team 7 Atlantic Computer2011. december 16.

Recommendation:
Use the value-in-use pricing method. 2. Recommended sales price for server: 5.500 USD/Unit 3. Recommended charge for PESA Harware as a Service (HaaS): 280 USD/month for 3 years contract. 4. For sales force new motivation package, 10% commission from every sold server and 5% from monthly fee/ month.
1.

Problem statement:
Jason Jowers has to develop a pricing strategy for the new Tronn server and the PESA software before the SME trade show.

Server Market Overview:






High Performance Servers ○ For Complex Applications ○ Next year marker potential 200.000 units ○ 3%/year Growth possibilities. ○ Atlantic Computer has a 20% market share. Basic servers ○ For single task, without the need of high computing performance ○ Next year market potential 50.000 units ○ Growth potential 36% till 2003 Competitor ○ Ontario Computer Inc. ZINK server is a main brand in the low end market On-line sales Low prices

Company Overview:
Atlantic Computer is a producer of High Performing Servers Jason Jowers joined AC four months ago and his main task is to develop the pricing strategy of the new Tronn Server with PESA support. Tronn is developed for low end market. PESA (Performance Enhancer Server Accelerator) is a software tool that was developed to allow Tronn to perform 4 times faster than normal servers like ZINK The server division focus on the hardware traditionally, the sales force historically given away software for free. Practice to use the cost plus pricing method based this Tronn price is 2000 USD. Main customer segment for Tronn and PESA combination is the web and file sharing companies who are relatively price sensitive but still looking for a good

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