Case ID: 2078
Solution ID: 18960
Words: 1145
Price $ 75

Atlantic Computer A Bundle of Pricing Options Case Solution

Case Solution

An English-language PDF of this Brief Case in an academic course pack will allow the students with the opportunity to buy an audio form as well. Atlantic Computer, a main player in the top of the line server business, has identified a commercial center open door in the fundamental server section. They have added to another server, the Tronn, to address the issues of this portion. What's more, they have made a product apparatus, called the "Execution Enhancing Server Accelerator," or PESA, that permits the Tronn to perform up to four times quicker than its standard velocity. The focal inquiry rotates around how to value the Tronn and PESA. In spite of the fact that cost-in addition, rivalry based, and business as usual estimating are the most widely recognized means by which firms set up costs for their offerings, these methodologies may keep firms from completely understanding the advantages that are because of them. Gives a chance to improve worth catch for the firm by using quality being used estimating (i.e., inspecting the quality that an association's putting forth makes for the client, and utilizing the reserve funds produced as the premise at creating costs). Additionally considers the investigation of the difficulties encompassing the execution of a quality being used estimating technique. These incorporate the responses of contenders, clients, and partners inside of the firm.

Excel Calculations

Option 1             

Status Quo Pricing

Option 2             

Competetive Based Pricing        

Option 3                                             

Cost Plus Pricing                                             

Option 4                             

Value In Pricing                               

Conservative Strategy                  

Pricing Method

Expected

Sales    

Revenues           

Costs    

Profit   

Difference

Questions Covered

What price should Jowers charge DayTraderJournal.com for the Atlantic Bundle (i.e., Tronn servers + PESA software tool)?

Think broadly about the top-line revenue implications from each of the four alternative pricing strategies.  Approximately how much money over the next three years will be “left on the table” if the firm were to give away the software tool for free (i.e., status quo pricing) versus utilizing one of the other pricing approaches?

How is Matzer likely to react to your recommendation?

How is Cadena‟s sales force likely to react to your recommendation?

What can Jowers recommend to get Cadenza’s hardware oriented sales force to understand and sell the value of the PESA software effectively?

How are customers in your target market likely to react to your recommended pricing strategy?  What response can be provided to overcome any objections?

How is Ontario Zinc‟s senior management team likely to react to the Atlantic Bundle?