Atlantic Computers Case Study

Case facts:

• Atlantic computer is currently into High Performance Segment of Server Market.

• It has decided to enter into Basic Server market.They have developed a new server THE TRONN to meet the need of this segment

• PESA software to be sold along with Basic Server which would allow its performance to be equivalent to that of 4 Basic Servers.

• The price of basic Server was approximately $2000.

SWOT Analysis:

Strengths Weaknesses

• Established and Strong player in Basic Server segment(20% market share)

• Known for providing highly reliable products and high quality responsive post sales service

• PESA speeds up basic servers upto 4 times

• Significant first order and second order savings from using PESA

• Traditional focus of H/w, no emphasis of developing and selling performance enhancing S/W tools

• Historically S/W tools have been given free with H/W

• Sales force’s compensation will affect director of sales’ view point for pricing

Opportunities Threats

• Expected CAGR of 36% in Basic Server segment

• Trade show is a good opportunity to market the ‘Atlantic Bundle’ to prospective customers

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• Success of the product solely dependent upon pricing

• Tough competition from Ontario Computer Inc (50% market share) with Zink product line

• Comparable performance of Zink with Tronn

• Ontario’s capability to compete on price basis (because of operational excellence)

5 C’s Analysis:

Company:

• Largest player in computer industry

• Competing in server market since 30 years by selling high-end performance servers

• Is launching low-end servers with PESA software

Competitor:

• Major competition in launch of low-end servers is Ontario Computers Inc.’s Zink

• Ontario owns 50% market share in low-end server category

• It competes mainly on price by