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Atlantic Computer Pricing Strategy - Essay Example

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This paper tells that fierce competition and new economic conditions force Atlantic Computer to search for a new pricing strategy. The problem is to choose the best pricing strategy and convince Atlantic Computer’s veterans to follow this new strategy. Jowers, a new product manager, makes a market analysis…
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Atlantic Computer Pricing Strategy
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Atlantic Computer Pricing Strategy

Download file to see previous pages... Jowers finds that pricing is significant where the market impact, profit results, or both, of price variations, is great, and where firms have considerable discretion over the prices charged. In many instances, pricing decisions are severely constrained and are sometimes relatively unimportant. Large purchasers of industrial goods, like Atlantic Computer, may specify prices at which they will buy, determine product specifications, and send specifications to suppliers for competitive bids. This, it will prevent the company from effective competition and can lead to decrease in sales.
The alternative solutions are status-quo pricing, competition-based pricing, cost-plus pricing and value-in-use pricing. Analyzing these strategies, Jowers takes into account competitors reaction and market positioning of Atlantic Computer. He supposes that frother products price may not be a relevant factor. In some technical areas where products require much research and development and involve much uncertainty, a cost-plus scheme may be used. In other situations, sellers may be almost completely free to set prices, while in still others, they may only be able to decide whether or not to sell at a price. Thus, the proposed pricing strategies have a negative or neutral impact on PESA and its strategic position on the market. The main requirements for the product are minimal acquisition costs, minimal possession costs, and the possibility to process many information requests. Introduction of the PESA is a crucial step for Atlantic Computer to gain market share and attract more clients.
The plan of action will involve analysis of sales force and their ability to introduce the PESA, customers purchasing power and analysis of the first sales. Buyers are concerned not only with price, in their purchases, but also with service, status, and image. Low price alone does not result in a transaction. ...Download file to see next pagesRead More
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