This website uses cookies to ensure you have the best experience. Learn more

Atlantic Computers Pricing Option Essay

855 words - 4 pages

Individual’s Assignment
Atlantic Computer: A Bundle of Pricing Options

As Atlantic computer was largest manufacturer of servers and other hi-tech product, Jason Jowers has been assigned the task of developing the pricing structure for the Atlantic Bundle, a unique combination of the TRONN server along with the software tool - Performance Enhancing Server Accelerator – called PESA. The TRONN server has been specifically designed to address the current US market demand. In conjunction with the PESA, the TRONN ‘s performance capacity is four times faster than standard speed. Atlantic has continued to hold a significant portion (20% revenues) of the high-performance sector, but as the ...view middle of the document...

com = $ 4000 ( Per Atlantic Bundle = $ 2000

- Competition – Based Pricing:

• Price of one Zink Server = $1700

• 2 Tronn Servers + PESA software free = 4*$1700 = $ 6800

• Total Price of 2 Atlantic Bundles for = $ 6800 ( Price of 1 Atlantic Bundle = $ 3400

- A cost-plus approach:

• The PESA software development = $ 2000000

• Cost of Tronn Server = $ 1538

• Total sale of Tronn servers sold in 3 years: 21180 (Unit)

• Total Sale of PESA software (50% of Tronn Server Sales): 10590 (Unit)

• PESA Cost per server = $ 2000000 / 10590 = $ 188.86 (with 30% Markup = $ 56.658 ( Hence, total PESA Cost per server is $ 245.518)

• Price of Tronn without PESA installed is $ 2000, therefore, the Price of Tronn with PESA installed is $ 2245.518 or $ 2246.

- Value-in-use Pricing:

| |2 Tronn servers |4 Zink servers |
|Price of server |$ 4000 |$ 6800 |
|Electricity |$ 500 |$ 1000 |
|Software License |$ 1500 |$ 3000 |
|Total Price |$ 6000 |$ 10800 |
|Savings |$ 4800 |
|Total Final Price |$ 6400 ( Per Atlantic Bundle = 4200 |

Therefore, the price in use method can generate more profits per unit than others. It is also easy to persuade the customers to choose as it shows that they can save $2400 when buying 2 Atlantic Bundles. In other words, the price is more justified and this will allow Atlantic Computers to maximize their profits. Moreover, it shows that this method is Customer – focused compared to the Company – focused in the third strategy:

| |Method 1 |M 2 ...

Other Papers Like Atlantic Computers Pricing Option

Marketing Mix Of Dell Essay

4714 words - 19 pages computers allowing pricing to be dependent upon components included. Apple on the other hand has multiple base choices and few upgrades within these choices to expand their variety. Apple products run on Apple created operating systems, and since the same company that produces the computer creates the software for every Mac, total integration and streamlining are innate. And this is one way they target the market of the tech-savvy. Whereas, Dell

Qrt Ebusiness Task 1 Essay

5311 words - 22 pages review, which is seven months old and there are no comments or posts from the company itself. No blog or newsletter is administered by the company to promote further business growth. b) E-Commerce Much like Southeastern Physical Therapy, Atlantic does not have any sort of e-marketplace set up on their website. There is nothing that can be purchased, so no shopping cart or online payment methods are utilized. No pricing information is listed on

Product Assessment

1605 words - 7 pages computers are still on the market and still is being used by some consumers, the product is indeed becoming obsolete. Tablet sales have skyrocketed while the growth of personal computers sales has dropped dramatically and is not expected the rise anytime soon. As tablets become more and more advanced, personal computer users are finding it more affordable and convenient option to replace their desktop or laptops with a tablet. Unlike personal

Barco Projection Systems

1076 words - 5 pages into price wars with competitors as they feel that they have nothing to gain from it and in most cases, their prices tend to be the highest. 2. How should Barco respond to this potential threat, with respect to price and product development plans? For pricing options, there was only one option that Barco could enter into, that was to include a considerable price reduction on the BG400, which is one of its most sellable products. However

Business Plan

1543 words - 7 pages . Industry, Yesterday, Today and Tomorrow 9. Competitive Analysis (Appendix B) 10. Demographics & Target Market 11. Entry Barriers III. Marketing Strategy 12. Product/Service 13. Sales Strategy 14. Promotion 15. Pricing Strategy 16. Web Strategy 17. Differentiation (Competitive Advantage) IV. Operations Plan 18. Location 19. Operation

Business Plan Template

1543 words - 7 pages . Industry, Yesterday, Today and Tomorrow 9. Competitive Analysis (Appendix B) 10. Demographics & Target Market 11. Entry Barriers III. Marketing Strategy 12. Product/Service 13. Sales Strategy 14. Promotion 15. Pricing Strategy 16. Web Strategy 17. Differentiation (Competitive Advantage) IV. Operations Plan 18. Location 19. Operation


1832 words - 8 pages lowering the price for Amazon Travel customers. Yet all of this is only possible thanks to the powerful computers that Amazon Travel will have in place in order to keep up with all of the current information from it’s affiliates and to be able to keep up with internet traffic of the travel industry. The travel industry is a tricky line of business, and with the economy in its certain state of chaos it will take efficient tactical planning to

Inventory Management System for Small Business

1010 words - 5 pages maximize the profit and sale. There is no any better option rather than bringing inventory management system for the small business like the local clothing store. Because it has an ability to track sales and available inventory, communicate with suppliers and receive and incorporate other data like seasonal demand. Simply it will tell the store owner when it’s time to reorder the products and how much to purchase. It definatly helps to minimizes

Cyber Espionage Nightmare

1868 words - 8 pages ; among other things, he now gives fewer employees so-called administrative privileges to their computers, and he searches the network for the telltale signs of communications by malware. But none of this would have prevented the intrusions. Wyatt says it “might have slowed them down.” The best option, then, could be to get sensitive data off the Internet entirely. There are downsides to that: if e-mail is not used as freely, or a database is

Fin 370 Initial Public Offering

1462 words - 6 pages these shares available comes at a low cost to the firm, but in an enormous amount. The second part to this answer becomes clear when we examine the financial benefits gained by the firm which include: • Public limited company rates would have a lessening effects when debt is issued. • If market demand for shares increases, a public limited company has the option to issue more stock. • Stocks are sold on the open market giving them liquidity

Juul Moller

3517 words - 15 pages Norwegian School of Management with a passion for computers. Dag had used him to help set up his home office. Dagfinn had spent the Easter break surfing the Internet and writing his term paper for a course called GRA2329 IT in Global Business at the Norwegian School of Management. The term paper assignment was to take an existing company and analyze how this company could use the Internet as an information and sales channel for products and

Related Essays

Atlantic Comp Essay

661 words - 3 pages accumulated over three if we go for option 4 will is $264920. Q2: How is the Matzer likely to react to your recommendation? Matzer was of the strong view point that the new basic software should be provided to customer for free. So he insisted on status-quo pricing as per the competitor – “Ontario computers”. Since Ontario is charging 1700$ for one basic server, he also wanted to compete in the market at same price. Matzer is initially

Atlantic Computers Essay

1158 words - 5 pages Atlantic computers are the largest manufacturer of servers and other high tech products with a 20% market revenue share in the segment. The company plans to launch a basic server TRONN and software PESA due to growth in demand for basic servers. Important Details * competitor: ONTARIO ZINK * CAGR: 3%(BS segment) * TRONN along with PESA works FOUR times more efficiently. * Value of 2 TRONNs = Value of 4 ZINKs Four types of pricing

Atlantic Computer Case Essay

1243 words - 5 pages Atlantic Computers to demonstrate to customers the true value of their product as well as their competence in the basic server technology. Conclusion As the analysis and breakdown of each pricing option has shown, it is quite clear that it is in Atlantic Computer’s best interest to pursue the “Value-in-Use” pricing strategy. With the comparisons made in the similar products offered by Atlantic and Ontario, one can easily see that the marginal

Atlantic Computer Essay

1607 words - 7 pages Atlantic Computers: A bundle of pricing options In the case, it mentioned that, conservatively, one Tronn server equals to two Zink servers; Aggressively, one Tronn equals to four Zink servers. Within the premise that Matzer and his colleagues were quite conservative, he decided to compare two basic servers loaded with the PESA versus four basic servers. In this case, therefore, we calculate the price of Atlantic Bundle with the assumption