Atlantic Computers Case Essay

1454 Words Nov 9th, 2008 6 Pages
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 company’s 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 division’s 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. Atlantic’s biggest competitor is Ontario Computer, Inc, which is a cost cutter in the industry, and
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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 the PESA software allows four servers to run simultaneously, lowering the procession costs significantly. The software also helped administrators monitor the health of the systems and be more responsive regarding to repairs. Atlantic can leverage the benefits that the software brings to the customers that Ontario computers does not have.

Internal Analysis: Atlantic company is the largest player in the overall industry and has been in the server market for over 30 years selling high end performance servers. They had captured the large enterprise customer segment and also captured the reputation for providing top-notch, reliable products. This corresponded with their reputation for providing quality and responsive sales assistance. Their customer intimacy and product differentiation is what leads them in the market. A weakness in the company is the divergent opinions and goals internally. This was apparent in the initial meeting, where Jowers was bombarded with different ideas and suggestions as to how to view

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