Scribd Logo
Upload

Welcome to Scribd!

  • A Ipm01010

    Uploaded by

    Mayank Bhatt
    13 views1 page
    Atlantic Computer is considering its pricing strategy for its new basic server, Tronn, which will compete directly with Ontario's dominant Zink server. It must decide whether to bundle Tronn with its professional services and support (PESA), maintain a cost-plus pricing model, set competitive prices targeting Zink, or pursue a value-based pricing approach. The document recommends that Atlantic bundle Tronn and PESA, engage in value pricing to convince small-medium business customers of the overall value, and not try to compete directly on price with Ontario's low-cost Zink server.

    Original Description:

    Decision sheet on multiculturalism

    Original Title

    A_IPM01010

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    Atlantic Computer is considering its pricing strategy for its new basic server, Tronn, which will compete directly with Ontario's dominant Zink server. It must decide whether to bundle Tronn with its professional services and support (PESA), maintain a cost-plus pricing model, set competitive prices targeting Zink, or pursue a value-based pricing approach. The document recommends that Atlantic bundle Tronn and PESA, engage in value pricing to convince small-medium business customers of the overall value, and not try to compete directly on price with Ontario's low-cost Zink server.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pdf or txt
    13 views1 page

    A Ipm01010

    Uploaded by

    Mayank Bhatt
    Atlantic Computer is considering its pricing strategy for its new basic server, Tronn, which will compete directly with Ontario's dominant Zink server. It must decide whether to bundle Tronn with its professional services and support (PESA), maintain a cost-plus pricing model, set competitive prices targeting Zink, or pursue a value-based pricing approach. The document recommends that Atlantic bundle Tronn and PESA, engage in value pricing to convince small-medium business customers of the overall value, and not try to compete directly on price with Ontario's low-cost Zink server.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pdf or txt
    of 1

    Arshiya Mahajan IPM01010 Sec.

    Atlantic Computer Incorporation


    MM II
    CONTEXT
    Atlantic Computer is the largest player in the overall Computer Industry.
    Competes in following Product segments High Performance Servers
    Basic Servers
    Products Offered:
    Radia (High Performance Servers) Tronn (Basic Servers)
    Facing Pricing Dilemma on Tronn servers
    Entry into Basic Server Market with Tronn will pit it directly against Ontario's Zink.

    THE DILLEMA
    In the context of direct competition with Basic Server market leader Ontario, the following
    questions are staring at Atlantic's product pricing team
    • Bundle or Unbundle Tronn and PESA
    • Maintain Cost Plus pricing
    • Go for Competitive Pricing targeting Zink
    • Shift market paradigm with Value Pricing

    MARKET SEGMENTATION

    • Demographics
    Company Size: Small and Medium Business

    • Operating Variables:
    Company Technology: Inexperienced Company Capabilities: Small Players

    • Purchasing Approaches:
    Purchasing Criteria: Cost and Product Support

    DECISION SUGGESTION
    1. Don't leave money on the table.
    2. Cost Plus pricing doesn't make sense as SME customers will not have enough clout to
    ask for Cost Audit.
    3. Sell Tronn and PESA as system with adequate after sales support. Don't compete on
    price with Ontario.
    4. To get approval on pricing, specially Mater, keep products bundled for nOw.
    5. Engage in Value pricing.
    6. Convince customers using Value Equation.

    You might also like