Atlantic computer: a bundle of pricing options

ATLANTIC COMPUTER A BUNDLE OF PRICING OPTIONS
Summary of the Situation Analysis
In this case, Atlantic Computer is a manufacturer of servers and high-tech products Two market segments exist in the server industry High performance and Basic Servers Atlantic Computers has held a 20% share of the High Performance market with their Radia servers being their premier product However, the market for Basic servers is growing and this has caused Atlantic Computers to develop and introduce a Basic Server called the Tronn and a software tool called the Performance Enhancing Server Accelerator (PESA).
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The
Tronn was developed mainly for the emerging US market opportunity for basic servers The
PESA would allow the Tronn to perform up to four times faster than its standard speed and make frequently requested information more accessible Thus, bundling the Tronn and PESA made more sense. Atlantic is not concerned that the Tronn will be considered a substitute for its High Performance servers.
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