The document discusses four pricing strategies for Atlantic Computers' new "Atlantic Bundle" product, which consists of their new Tronn server and PESA software. The strategies are: 1) status-quo pricing, 2) competition-based pricing, 3) cost-plus pricing, and 4) value-in-use pricing. After reviewing the strategies and conducting a break-even analysis, it is recommended to use value-in-use pricing of $4,200 per bundle. This captures the savings customers realize and has one of the lowest break-even points. Recommendations are also provided for training Atlantic's sales force to sell based on the bundle's value and savings. Potential reactions from main competitor Zink
ATLANTIC COMPUTER: A BUNDLE OF PRICING OPTIONS Akshay Jain
There are four main types of pricing strategies from which Atlantic Computers canchoose. First, Atlantic Computers could stay with the status quo and offer software tools for free. Second, it could choose competitive based pricing. Third it could choose from Cost-plus pricing. Finally, it could choose value-in use pricing.In addition to determining which pricing strategy to use, Atlantic
ATLANTIC COMPUTER: A BUNDLE OF PRICING OPTIONS Akshay Jain
There are four main types of pricing strategies from which Atlantic Computers canchoose. First, Atlantic Computers could stay with the status quo and offer software tools for free. Second, it could choose competitive based pricing. Third it could choose from Cost-plus pricing. Finally, it could choose value-in use pricing.In addition to determining which pricing strategy to use, Atlantic
Toko Bunga Surabaya, Jual Karangan Bunga Surabaya, Jual Bunga Papan Surabaya, Jual Bunga Ucapan Surabaya, Jual Rangkaian Bunga Surabaya, Jual Buket Bunga Surabaya, Bunga Ucapan Selamat, Bunga Ucapan Duka Cita, Bunga Papan Selamat, Bunga Papan Duka Cita
Aqualisa Quartz - Simply A Better Shower (HBR Case Study)Arjun Parekh
Probable Solution to HBR Case on Aqualisa Quartz. The Presentation consists of info about Channel Distribution, Development of Quartz Shower Valve, UK Shower Market, Initial Sales Results, 4Ps of Marketing for Aqualisa, A shift in Marketing Strategy.
The goal of this case analysis was to determine how to position a product to the appropriate customer segment, to offer value to their direct and indirect customers using quantitative data.
Clique Pens - Case Study Solution by Kamal Allazov (Essay type)Kamal Allazov (MSc.)
Clique Pens Case Study by Harward Mba Center. This paper introduces possible solutions and recommendations by MSc. Marketing student - Allazov Kamal. (https://allazov.org/)
A marketing Case Study of Natureview Farm, an organic yogurt manufacturer. This analysis was performed by E. Santhosh Kumar, IIT Madras, during an internship with Prof. Sameer Mathur, IIM Lucknow.
Toko Bunga Surabaya, Jual Karangan Bunga Surabaya, Jual Bunga Papan Surabaya, Jual Bunga Ucapan Surabaya, Jual Rangkaian Bunga Surabaya, Jual Buket Bunga Surabaya, Bunga Ucapan Selamat, Bunga Ucapan Duka Cita, Bunga Papan Selamat, Bunga Papan Duka Cita
Aqualisa Quartz - Simply A Better Shower (HBR Case Study)Arjun Parekh
Probable Solution to HBR Case on Aqualisa Quartz. The Presentation consists of info about Channel Distribution, Development of Quartz Shower Valve, UK Shower Market, Initial Sales Results, 4Ps of Marketing for Aqualisa, A shift in Marketing Strategy.
The goal of this case analysis was to determine how to position a product to the appropriate customer segment, to offer value to their direct and indirect customers using quantitative data.
Clique Pens - Case Study Solution by Kamal Allazov (Essay type)Kamal Allazov (MSc.)
Clique Pens Case Study by Harward Mba Center. This paper introduces possible solutions and recommendations by MSc. Marketing student - Allazov Kamal. (https://allazov.org/)
A marketing Case Study of Natureview Farm, an organic yogurt manufacturer. This analysis was performed by E. Santhosh Kumar, IIT Madras, during an internship with Prof. Sameer Mathur, IIM Lucknow.
Understanding the TCO and ROI of Apache Kafka & Confluentconfluent
For a product or service to be cost effective, it must be considered to be good value, where the benefits are worth at least what is paid for them. But how do we measure this, to prove the case? Given that value can be intangible, it can be hard to quantify and may have little relationship to cost. Added to this, the open source nature of Apache Kafka means that many companies skip the requirement to build a business case for it, until it has become mission critical and demands financial and human resources.
In this presentation, Lyndon Hedderly, Team Lead of Business Value Consulting at Confluent, will cover how Confluent works with customers to measure the business value of data streaming
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For a product or service to be cost effective, it must be considered to be good value, where the benefits are worth at least what is paid for them. But how do we measure this, to prove the case? Given that value can be intangible, it can be hard to quantify and may have little relationship to cost. Added to this, the open source nature of Apache Kafka means that many companies skip the requirement to build a business case for it, until it has become mission critical and demands financial and human resources.
In this presentation, Lyndon Hedderly, Team Lead of Business Value Consulting at Confluent, will cover how Confluent works with customers to measure the business value of data streaming.
Phase 3 Structured Problem Solving ProcessStep 1: Define the Problem
1. Develop/Implement Cycle Inventory
2. Develop software automation
a. Demand Forecasting
b. Cycle Inventory
c. Simulation
3. Create Benchmark of SCM
a. PlantronicsStep 2: Create a Plan
1. Develop/Implement Cycle Inventory
a. Reasons for Cycle Inventory
b. Context of SC Network and SC Stages
c. Best forecasted demand
d. Calculate Cycle Inventory and other values (Enter Formulas for each into Spreadsheet)
e. Graphically show Theia’s Cycle Inventory
2. Develop Software Automation
a. Automate Demand Forecasting in Visual Basic
b. Automate Cycle Inventory in Visual Basic
c. Show simulation of Software Module of Theia Vision’s Cycle Inventory/Demand Forecasting
3. Develop a Benchmark of SCM against PlantronicsStep 3: Execute the Plan
Following contents are the plan in execution.[1] - Cycle Inventory
Advantages/Reasons for Theia Having a Cycle Inventory
· Average amount inventory used to satisfy demand between shipments → allows Theia to take advantage of economies of scale
· Allows Theia to minimize total inventory costs
· Theia should keep the cycle inventory as low as possible to save money on shipping and storage of inventory costs. → key aspect to maximize profit
· Facilitates the balance of supply and demand for Theia’s products by allowing SPC to satisfy customer demand based on forecasts
· Implementing optimal quantity of inventory to receive from suppliers per each shipment/order allows Theia to minimize holding cost of inventory and transportation cost
· Overall, having a cycle inventory will allow SPC to reduce costs, therefore maximizing their profits
Context of Theia’s Supply Chain
Theia’s Supply Chain Network
Theia Vision’s Best Forecasted Demand for Year 4 (Winter’s Method)
Year
Annual Demand
Period
Forecast
1
578,166
1
15099
2
96110
3
182443
4
284514
2
1,492,695
5
219828
6
330269
7
416538
8
526060
3
2,365,871
9
359812
10
535437
11
659850
12
810772
4
2,504,131
13
499278
14
616411
15
662682
16
725260
Cycle inventory is the average inventory needed to meet customer demand between the order time and when the supply arrives.
Costs are part of the equation due to inventory storage expenses.
⇒ Therefore, we need to know the annual demand of our product as well as the material cost, shipping cost, and holding cost:
Demand (D) = Annual demand (obtained through forecasting) Year 4
2,504,131 Smart Glasses
Cost (C) = Price paid by the manufacturer to the supplier for 1 unit of supply
$300
Inventory holding cost (h%) = cost of holding $1 of inventory for 1 year.
0.1
Fixed Ordering Cost (S) = cost of placing the order and labor for receiving.
$3000
Lot Size (Q) = Number of units in 1 lot of shipment (quantity per shipment)
QL*= √
QL* = √
QL* =12920.6
The amount Theia should load onto each truck is about 12,920.6 Smart Glasses per shipment to minimize total cost based on forecasted demand for year 4. (Efficiency)
Cycle Inventory
QL*.
Phase 3 Structured Problem Solving ProcessStep 1: Define the Problem
1. Develop/Implement Cycle Inventory
2. Develop software automation
a. Demand Forecasting
b. Cycle Inventory
c. Simulation
3. Create Benchmark of SCM
a. PlantronicsStep 2: Create a Plan
1. Develop/Implement Cycle Inventory
a. Reasons for Cycle Inventory
b. Context of SC Network and SC Stages
c. Best forecasted demand
d. Calculate Cycle Inventory and other values (Enter Formulas for each into Spreadsheet)
e. Graphically show Theia’s Cycle Inventory
2. Develop Software Automation
a. Automate Demand Forecasting in Visual Basic
b. Automate Cycle Inventory in Visual Basic
c. Show simulation of Software Module of Theia Vision’s Cycle Inventory/Demand Forecasting
3. Develop a Benchmark of SCM against PlantronicsStep 3: Execute the Plan
Following contents are the plan in execution.[1] - Cycle Inventory
Advantages/Reasons for Theia Having a Cycle Inventory
· Average amount inventory used to satisfy demand between shipments → allows Theia to take advantage of economies of scale
· Allows Theia to minimize total inventory costs
· Theia should keep the cycle inventory as low as possible to save money on shipping and storage of inventory costs. → key aspect to maximize profit
· Facilitates the balance of supply and demand for Theia’s products by allowing SPC to satisfy customer demand based on forecasts
· Implementing optimal quantity of inventory to receive from suppliers per each shipment/order allows Theia to minimize holding cost of inventory and transportation cost
· Overall, having a cycle inventory will allow SPC to reduce costs, therefore maximizing their profits
Context of Theia’s Supply Chain
Theia’s Supply Chain Network
Theia Vision’s Best Forecasted Demand for Year 4 (Winter’s Method)
Year
Annual Demand
Period
Forecast
1
578,166
1
15099
2
96110
3
182443
4
284514
2
1,492,695
5
219828
6
330269
7
416538
8
526060
3
2,365,871
9
359812
10
535437
11
659850
12
810772
4
2,504,131
13
499278
14
616411
15
662682
16
725260
Cycle inventory is the average inventory needed to meet customer demand between the order time and when the supply arrives.
Costs are part of the equation due to inventory storage expenses.
⇒ Therefore, we need to know the annual demand of our product as well as the material cost, shipping cost, and holding cost:
Demand (D) = Annual demand (obtained through forecasting) Year 4
2,504,131 Smart Glasses
Cost (C) = Price paid by the manufacturer to the supplier for 1 unit of supply
$300
Inventory holding cost (h%) = cost of holding $1 of inventory for 1 year.
0.1
Fixed Ordering Cost (S) = cost of placing the order and labor for receiving.
$3000
Lot Size (Q) = Number of units in 1 lot of shipment (quantity per shipment)
QL*= √
QL* = √
QL* =12920.6
The amount Theia should load onto each truck is about 12,920.6 Smart Glasses per shipment to minimize total cost based on forecasted demand for year 4. (Efficiency)
Cycle Inventory
QL* ...
AI-Powered Personalization: Principles, Use Cases, and Its Impact on CROVWO
In today’s era of AI, personalization is more than just a trend—it’s a fundamental strategy that unlocks numerous opportunities.
When done effectively, personalization builds trust, loyalty, and satisfaction among your users—key factors for business success. However, relying solely on AI capabilities isn’t enough. You need to anchor your approach in solid principles, understand your users’ context, and master the art of persuasion.
Join us as Sarjak Patel and Naitry Saggu from 3rd Eye Consulting unveil a transformative framework. This approach seamlessly integrates your unique context, consumer insights, and conversion goals, paving the way for unparalleled success in personalization.
Mastering Local SEO for Service Businesses in the AI Era is tailored specifically for local service providers like plumbers, dentists, and others seeking to dominate their local search landscape. This session delves into leveraging AI advancements to enhance your online visibility and search rankings through the Content Factory model, designed for creating high-impact, SEO-driven content. Discover the Dollar-a-Day advertising strategy, a cost-effective approach to boost your local SEO efforts and attract more customers with minimal investment. Gain practical insights on optimizing your online presence to meet the specific needs of local service seekers, ensuring your business not only appears but stands out in local searches. This concise, action-oriented workshop is your roadmap to navigating the complexities of digital marketing in the AI age, driving more leads, conversions, and ultimately, success for your local service business.
Key Takeaways:
Embrace AI for Local SEO: Learn to harness the power of AI technologies to optimize your website and content for local search. Understand the pivotal role AI plays in analyzing search trends and consumer behavior, enabling you to tailor your SEO strategies to meet the specific demands of your target local audience. Leverage the Content Factory Model: Discover the step-by-step process of creating SEO-optimized content at scale. This approach ensures a steady stream of high-quality content that engages local customers and boosts your search rankings. Get an action guide on implementing this model, complete with templates and scheduling strategies to maintain a consistent online presence. Maximize ROI with Dollar-a-Day Advertising: Dive into the cost-effective Dollar-a-Day advertising strategy that amplifies your visibility in local searches without breaking the bank. Learn how to strategically allocate your budget across platforms to target potential local customers effectively. The session includes an action guide on setting up, monitoring, and optimizing your ad campaigns to ensure maximum impact with minimal investment.
Financial curveballs sent many American families reeling in 2023. Household budgets were squeezed by rising interest rates, surging prices on everyday goods, and a stagnating housing market. Consumers were feeling strapped. That sentiment, however, appears to be waning. The question is, to what extent?
To take the pulse of consumers’ feelings about their financial well-being ahead of a highly anticipated election, ThinkNow conducted a nationally representative quantitative survey. The survey highlights consumers’ hopes and anxieties as we move into 2024. Let's unpack the key findings to gain insights about where we stand.
10 Video Ideas Any Business Can Make RIGHT NOW!
You'll never draw a blank again on what kind of video to make for your business. Go beyond the basic categories and truly reimagine a brand new advanced way to brainstorm video content creation. During this masterclass you'll be challenged to think creatively and outside of the box and view your videos through lenses you may have never thought of previously. It's guaranteed that you'll leave with more than 10 video ideas, but I like to under-promise and over-deliver. Don't miss this session.
Key Takeaways:
How to use the Video Matrix
How to use additional "Lenses"
Where to source original video ideas
Mastering Local SEO for Service Businesses in the AI Era is tailored specifically for local service providers like plumbers, dentists, and others seeking to dominate their local search landscape. This session delves into leveraging AI advancements to enhance your online visibility and search rankings through the Content Factory model, designed for creating high-impact, SEO-driven content. Discover the Dollar-a-Day advertising strategy, a cost-effective approach to boost your local SEO efforts and attract more customers with minimal investment. Gain practical insights on optimizing your online presence to meet the specific needs of local service seekers, ensuring your business not only appears but stands out in local searches. This concise, action-oriented workshop is your roadmap to navigating the complexities of digital marketing in the AI age, driving more leads, conversions, and ultimately, success for your local service business.
Key Takeaways:
Embrace AI for Local SEO: Learn to harness the power of AI technologies to optimize your website and content for local search. Understand the pivotal role AI plays in analyzing search trends and consumer behavior, enabling you to tailor your SEO strategies to meet the specific demands of your target local audience. Leverage the Content Factory Model: Discover the step-by-step process of creating SEO-optimized content at scale. This approach ensures a steady stream of high-quality content that engages local customers and boosts your search rankings. Get an action guide on implementing this model, complete with templates and scheduling strategies to maintain a consistent online presence. Maximize ROI with Dollar-a-Day Advertising: Dive into the cost-effective Dollar-a-Day advertising strategy that amplifies your visibility in local searches without breaking the bank. Learn how to strategically allocate your budget across platforms to target potential local customers effectively. The session includes an action guide on setting up, monitoring, and optimizing your ad campaigns to ensure maximum impact with minimal investment.
The session includes a brief history of the evolution of search before diving into the roles technology, content, and links play in developing a powerful SEO strategy in a world of Generative AI and social search. Discover how to optimize for TikTok searches, Google's Gemini, and Search Generative Experience while developing a powerful arsenal of tools and templates to help maximize the effectiveness of your SEO initiatives.
Key Takeaways:
Understand how search engines work
Be able to find out where your users search
Know what is required for each discipline of SEO
Feel confident creating an SEO Plan
Confidently measure SEO performance
5 big bets to drive growth in 2024 without one additional marketing dollar AND how to adapt to the biggest shifting eCommerce trend- AI.
1) Romance Your Customers - Retention
2) ‘Alternative’ Lead Gen - Advocacy
3) The Beautiful Basics - Conversion Rate Optimization
4) Land that Bottom Line - Profitability
5) Roll the Dice - New Business Models
Short video marketing has sweeped the nation and is the fastest way to build an online brand on social media in 2024. In this session you will learn:- What is short video marketing- Which platforms work best for your business- Content strategies that are on brand for your business- How to sell organically without paying for ads.
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In this talk Felipe Bazon will share how him and his team at Hedgehog Digital share our journey of making C-Levels alike, specially CMOS realize that SEO is the backbone of digital marketing by showing how SEO can contribute to brand awareness, reputation and authority and above all how to use SEO to create more robust global marketing strategies.
Core Web Vitals SEO Workshop - improve your performance [pdf]Peter Mead
Core Web Vitals to improve your website performance for better SEO results with CWV.
CWV Topics include:
- Understanding the latest Core Web Vitals including the significance of LCP, INP and CLS + their impact on SEO
- Optimisation techniques from our experts on how to improve your CWV on platforms like WordPress and WP Engine
- The impact of user experience and SEO
When most people in the industry talk about online or digital reputation management, what they're really saying is Google search and PPC. And it's usually reactive, left dealing with the aftermath of negative information published somewhere online. That's outdated. It leaves executives, organizations and other high-profile individuals at a high risk of a digital reputation attack that spans channels and tactics. But the tools needed to safeguard against an attack are more cybersecurity-oriented than most marketing and communications professionals can manage. Business leaders Leaders grasp the importance; 83% of executives place reputation in their top five areas of risk, yet only 23% are confident in their ability to address it. To succeed in 2024 and beyond, you need to turn online reputation on its axis and think like an attacker.\
Key Takeaways:
- New framework for examining and safeguarding an online reputation
- Tools and techniques to keep you a step ahead
- Practical examples that demonstrate when to act, how to act and how to recover
In this presentation, Danny Leibrandt explains the impact of AI on SEO and what Google has been doing about it. Learn how to take your SEO game to the next level and win over Google with his new strategy anyone can use. Get actionable steps to rank your name, your business, and your clients on Google - the right way.
Key Takeaways:
1. Real content is king
2. Find ways to show EEAT
3. Repurpose across all platforms
SMM Cheap - No. 1 SMM panel in the worldsmmpanel567
Boost your social media marketing with our SMM Panel services offering SMM Cheap services! Get cost-effective services for your business and increase followers, likes, and engagement across all social media platforms. Get affordable services perfect for businesses and influencers looking to increase their social proof. See how cheap SMM strategies can help improve your social media presence and be a pro at the social media game.
When most people in the industry talk about online or digital reputation management, what they're really saying is Google search and PPC. And it's usually reactive, left dealing with the aftermath of negative information published somewhere online. That's outdated. It leaves executives, organizations and other high-profile individuals at a high risk of a digital reputation attack that spans channels and tactics. But the tools needed to safeguard against an attack are more cybersecurity-oriented than most marketing and communications professionals can manage. Business leaders Leaders grasp the importance; 83% of executives place reputation in their top five areas of risk, yet only 23% are confident in their ability to address it. To succeed in 2024 and beyond, you need to turn online reputation on its axis and think like an attacker.
Key Takeaways:
- New framework for examining and safeguarding an online reputation
- Tools and techniques to keep you a step ahead
- Practical examples that demonstrate when to act, how to act and how to recover
3. Objective:
Develop a pricing strategy for Atlantic Computers called the ‘Atlantic Bundle’ consisting of
the new Tronn server and the PESA (Performance Enhancing Server Accelerator) software
Company Profile:
Largest player in the overall computer industry – competing for 30 years
Manufacturer of high-end servers and high-tech products
Jason Jowers responsible for the pricing of the Atlantic Bundle
The Tronn was developed specifically for the emerging US market
PESA would allow Tronn to perform upto four times faster
Two main market segments – Traditional segment & Basic Server segment 3 of 13
4. Competitors:
Ontario Computer, Inc. with Zink product line
Claimed 50% maket share in the basic server market
Zink servers performed at approximately the same level as Atlantic’s Tronn
Factors influencing pricing:
Traditional focus on hardware; limited emphasis on software
Software tools were historically provided for free (Matzer’s belief)
Long relied on standard approach (cost-plus pricing) in the industry
Gains accrued by customers from PESA to be carefully considered
Importance of conveying two-step savings to customers
4 of 13
5. Two-step Savings:
First-order savings: purchase of fewer servers
Second-order savings: Lower annual electricity charges, software licenses, labor costs
Pricing Options Alternatives:
Jowers had four routes to go about for pricing the Atlantic Bundle:
1. Status-quo pricing
2. Competition-based pricing
3. Cost-plus pricing
4. Value-in-use pricing
5 of 13
6. Strategy 1: Status-Quo Pricing
Charge for hardware; Software free
Established price of basic server = $2,000
Comparison was made between two Tronn servers loaded with PESA against 4 Ontario’s
Zink servers
Price of Atlantic Bundle = Price of Tronn + Free PESA software
= $2,000
Lowest price option; devalues the package
Failed to capture the total value of the product
Amount spent on R&D ($2,000,000) had to be foregone
6 of 13
7. Strategy 2: Competition-based Pricing
Charge based on competitors pricing
Conservative model: Two Tronn equals Four Zinc servers (priced $1,700 each)
Price of Atlantic Bundle = Price of 2 Zinc Server
= $1,700 * 2
= $3,400
Aggressive model: One Tronn equals Four Zinc servers (priced $1,700 each)
Price of Atlantic Bundle = Price of 4 Zinc Server
= $1,700 * 4
= $6,800
Factors in a portion of the costs associated with software development 7 of 13
8. Strategy 3: Cost-plus Pricing
Year 2001 2002 2003 Totals
Market Volume (units) 50,000 70,000 92,000
Market Share of Atlantic 4% 9% 14%
Total Sales 2,000 6,300 12,880 21,180
Estimated PESA Sale (50%) 1,000 3,150 6,440 10,590
50000 70000
92000
200000
205000
210500
0
100000
200000
300000
400000
2001 2002 2003
PROJECTED MARKET VOLUMES BY
SEGMENT
Basic Segment High Performance Segment
Cost of Atlantic Tronn
Server
$1,538
Cost of PESA per
Server
2,000,000/10,590 =
$189
Total Cost of Atlantic
Bundle
1,538 + 189 =
$1,727
30% Mark-up 1,727 * 0.3 =
$518
Final Price 1,727 + 518 =
$2,245
Price of Atlantic Bundle = $2,245
8 of 13
9. Strategy 4: Value-in-use Pricing
Considering four Zink servers equal two Tronn servers and 50-50 savings sharing
Savings: (9,400 – 5,000) = $4,400
Profit Sharing: 50-50 = $2,200
Price of Atlantic Bundle = $2,000 + $2,200
= $4,200
Savings Information Two Zink Servers One Tronn Server
Electricity Savings 250 * 2 = $500 $250
Software License Savings 750 * 2 = $1,500 $750
Labor Costs Savings 80,000/40 = 2,000 * 2 = $4,000 $2,000
Cost of server 1,700 * 2 = $3,400 $2,000
Total $9,400 $5,000
9 of 13
10. Review & Break-even Analysis:
Pricing for all four alternatives and their respective break-even units and time:
Price Cost Contribution R&D Cost Break-even
(units)
Break-even
(Year)
1. Status-Quo Pricing 2,000 1,538 462 2,000,000 4,329 2003
2. Competition-based Pricing 6,800 1,538 5,262 2,000,000 380 2001
3. Cost-plus Pricing 2,245 1,538 707 2,000,000 2,829 2002
4. Value-in-use Pricing 4,200 1,538 2,662 2,000,000 752 2001
Recommendation:
Go with Strategy 4, Value-in-use Pricing: second highest revenue, second lowest BEP
Provides better foundation for sales strategy
Captures the essence: savings that the customer accrues from buying the product
Offering Tronn at the price that is the same level of Zink ($2,000) 10 of 13
11. Recommendations for Cadena’s Sales Force
The sales force needs to be trained to sell products on the basis of the following points:
Communicate on the savings/gains/value to the customer
Performance increase in Tronn, especially with PESA software tool
Emphasize on the lower acquisition and possession costs
Ensure excellent after sales service for customers
Motivation for the salesforce:
Business model intact: 70% salary and 30% commission
Higher the revenue, higher is the commission per sale of a server
11 of 13
12. Reaction of Zink’s management to the threat posed to Atlantic Bundle
Short Term:
Zink’s management might reduce the price of its server
If so, Atlantic can charge the client according to the cost plus approach and show the
savings ($2,611) to them.
[Zink’s price can fall up to their costs of $1,214 countering Atlantic’s cost of $2,246. Since
four servers are needed, the total cost for Zink equals $1,214 * 4 = $4,856.
Therefore, savings = $(4,856 - 2,245) = $2,611]
Long Term:
Zink’s management may come up with an identical software
Atlantic can provide the PESA software free in that case
12 of 13