Atlantic Computer: A Bundle of Pricing Options Harvard Case Solution & Analysis

Atlantic Computer: A Bundle of Pricing Options Case Solution


In the case, Atlantic Computer was the most successful player in the overall computer industry with the operations running since 30 years. It sells viable products and offers different technological solutions in order to provide end results to its desire customers. The industry also dealt with the server optimization strategies to control the systems by allowing the fast access to use. Major segments of the industry consisted of web design, internet servers, as well as corporate customers.

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These segments were the main source of income for the company since its inception. Therefore, with the historical results, the company is now looking for expanding the market share by offering new innovative technological solutions to the end customer and users. For that, it introduced the Tronn server to optimize the results quickly and to allow the customers to enjoy this new service and save the cost of repair or other minor expenses that are incurred through these type of servers as opposed to this new server. It is identified that whether the company would introduce the product under high quality or not, there is always an issue addressed by the customers regarding the price range they used to sell. It has been determined that the four pricing strategies used by Jowers (Product Manager) would allow to proper implementation of the results by using the new server and software. Thus, the whole background of the company shows that it has continuously improved its results and is maintaining its position to become innovative since its inception, which has allowed its customers to use its products in various segments. It also identified that the industry standards have been the same because of the continuous success in the field of computer technology and is a leading service provider in the current market where it operates. When analyzing the industry competitors, then it is determined that there were only few players to hold most of the market share, so after conducting the research by Atlantic Computers, Ontario incorporation was the key player to hold at least 50% of the market share and it offered quality servers in order to retain the customers of different segments. Therefore, the industry background shows that there was still an imperfect competition within the market.

Problem Statement

The company was successful due to its innovative technological solutions and its ability to retain the customers of different segments. Certain trends of innovations were followed with introduction the new servers and software to attract the customers by using the high quality data and solutions for long-term. The pertaining issue was the pricing of the new product “Tronn server” that would minimize the cost of holding more servers. Therefore, this new technology was still under a question of whether it would survive in future and generate the projected results implemented by the company. So in order to make it more effective and efficient, the injection of PESA software into the new server would allow to increase the speed four times more than the server of Ontario Corporation. However, the question was still the level of prices, which the industry would face. This is because if the related prices would not be implemented properly, then there is always a threat of product failure due to the already established servers holding the market. Therefore, the main problem would be not attracting the new technology due to price sensitive matter proposed by key customers and a threat eliminating them under the new price of the products as well, which company would offer for the new server and software. The case also shows that Jowers had offered 4 routes that could achieve the desired outcome for this pricing issue:......................

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