Essay About High Performance Segment Of Server Market And Tough Competition

Atlantic Computers Case Study
Case facts:
Atlantic computer is currently into High Performance Segment of Server Market.
It has decided to enter into Basic Server market.They have developed a new server THE TRONN to meet the need of this segment
PESA software to be sold along with Basic Server which would allow its performance to be equivalent to that of 4 Basic Servers.
The price of basic Server was approximately $2000.
SWOT Analysis:
Strengths
Weaknesses
Established and Strong player in Basic Server segment(20% market share)
Known for providing highly reliable products and high quality responsive post sales service
PESA speeds up basic servers upto 4 times
Significant first order and second order savings from using PESA
Traditional focus of H/w, no emphasis of developing and selling performance enhancing S/W tools
Historically S/W tools have been given free with H/W
Sales force’s compensation will affect director of sales’ view point for pricing
Opportunities
Threats
Expected CAGR of 36% in Basic Server segment
Trade show is a good opportunity to market the ‘Atlantic Bundle’ to prospective customers
Success of the product solely dependent upon pricing
Tough competition from Ontario Computer Inc (50% market share) with Zink product line
Comparable performance of Zink with Tronn
Ontario’s capability to compete on price basis (because of operational excellence)
5 C’s Analysis:
Company:
Largest player in computer industry
Competing in server market since 30 years by selling high-end performance servers
Is launching low-end servers with PESA software
Competitor:
Major competition in launch of low-end servers is Ontario Computers Inc.’s Zink
Ontario owns 50% market share in low-end server category
It competes mainly on price by