Download Case Analysis - Atlantic Computers PDF

TitleCase Analysis - Atlantic Computers
TagsPrices Profit (Accounting) Server (Computing) Cost Competition
File Size494.8 KB
Total Pages11
Document Text Contents
Page 11

On detailed comparative study of 4 different pricing approch for
Tronn Servers & PESA Softwares, it is eveident from the above
chart that Competition Based pricing is the most suitable option.

 This approach takes into consideration competitors prices and provides
superior services at same rate.

 The market share is already owned by competition to an extent of 50%,
hence price plays a vital role. It needs to highly competitive and at par with
the pricing of competitive products.

 Low price does not always means that product will bhe accepted by the
market. If the prices are very low, the market even presumes that the
quality of product if inferior.

 If the pricing are very low, competitors can also reduce there prices to that
extent as there product already command certain share in the market.

 If prices are too high as given in Value in Use Pricing, then consumer may
not accept the product and would prefer to buy two products of
competition in place of one Tronn Servers.

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