Atlantic Computer

In: Business and Management

Submitted By acunash
Words 939
Pages 4
Executive Summary
Atlantic Computer is computer hardware manufacturer of servers and other high tech products. Recently, there was the announcement of the development of a new server called the Tronn. This new product was specifically developed to address an emerging market in the US and would be sold with a piece of software called Performance Enhancing Server Accelerator or PESA. This software was designed to accelerate the performance of the aforementioned Tronn server and would allow this one server to replace up to four servers. Prior to the announcement, Atlantic Computer was primarily known for selling high end premium servers. This is a new product for the firm as they look to enter into an existing, emerging market. This creates challenges for the leadership team. Historically, Atlantic Computer had tried to introduce new products into the marketplace but they had not been successful.

The problem with Atlantic Computer is determining an appropriate pricing strategy and then communicating such a strategy. Therefore, it is recommended that a value added pricing model should be established. A marketing communication plan should follow this new pricing strategy.

Review of the marketplace is necessary so that the product can be placed and priced appropriately so that Atlantic computer can ensure success. The largest competitor was Ontario Computer, a firm which had been the leader in the proposed new target market of the Tronn server. The leadership team of Atlantic Computer was confident that the Tronn server accompanied with the PESA software, referred to as the “Atlantic Bundle” would be able to out-perform the standard server and its competitors.

The Problem
There are two (2) problems with Atlantic Computer. They are the a) the pricing model to use and b) the marketing communication plan.
The first problem to address is the pricing…...

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