Atlantic Computer: A Bundle of Pricing Options HBR Case Solution
This article is written by NEERAJ BHARADWAJ and JOHN B. GORDON. The Source is taken from HBS, comprising of 6 pages and published on 28th of May; 2007.Product no is 2078-PDF-ENG
atlantic computer case solution
Value is more expensive than price!
ATLANTIC COMPUTER is a company that is now entering in a top server market. To rule in this market they have designed a four times faster server ‘TRONN’. It has used a new tool called ‘PESA’ to increase its standard speed.
But crating a good product is not an only a gate to rule! It also needs to adopt the best pricing techniques that can help increasing their profit margins. They can use COST PLUS (competition based) or STATUS QUE pricing techniques. But these techniques often make the customers unsatisfied and make the firms to be considered as unfair. There are some values and benefits that must be offered to customers to make them think of you as best service providers, a simple example can be lower prices!
To win hearts and to get good responses of customers and stakeholder, and to give their competitors a challenging time this VALUE-BASED pricing technique must be should i.e. while having a USP offering good deals.
This case covers a wide range of subjects including BUSINESS TO BUSINESS and PRICING STRATEGY.
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