Atlantic Computer Solution Essay examples

1273 Words Nov 17th, 2012 6 Pages
Atlantic Computer:
A Bundle of Pricing Options

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Summary
Atlantic computer’s most important goal is to increase profitability by selling ‘Tronn with PESA’ packages to consumers who want to operate web sites or share files. Among 4 price alternatives suggested in the case, the price based on value-in-use pricing analysis will be charged for ‘Tronn with PESA’ package. To achieve this goal, the company should overcome some impediments; one is that consumers are not accustomed to paying more money for the software tool such as PESA, and the other is that the company does not have sales structure for its new product. To overcome these problems, the company can make the new server product category and
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For these reasons, Atlantic computer should more focus on increasing profitability than gaining a little more market share.

Impediment There are two main impediments the company should overcome to achieve the goal. First, consumers as well as the staffs of the server and sales division think that the software tools such as PESA are provided for free. This stereotype makes it hard to charge some additional price based on value-in-use pricing for ‘Tronn with PESA’ package. Although the package can save consumers’ money, they would response negatively if they should pay for using PESA. So, it is important how the company changes the mind of consumers. Also, because the price of the package seems much more expensive than that of any other basic server products and most consumers are price-sensitive, they may not want to buy the package if the benefits of it are not properly informed. Second, as Atlantic computer newly enters the basic server market, the company does not have the effective sales structure for ‘Tronn’ and ‘Tronn with PESA’ package product. Although the company already has sales team, much more sales forces will be needed. Also, the company should educate them on the benefits that ‘Tronn with PESA’ package will provide, which costs the company lots of money

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