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Recommended: Pricing strategy
This is why the pricing strategy that newcomer, Jason Jowers is working on is so important for the promotion of this new package that is being offered. Atlantic Computer is looking to compete against one of its competitors; Ontario Computer, Inc., who has claimed about 50% of the low-end basic server market. The business consumers will be attracted to the Tronn and PESA because they will need a server that will allow them to keep their employees on the network, while improving operating costs at the same time.
Jason Jowers is concern that during his process of trying to get a pricing strategy in order, he is getting to many opinions from too many people in the company, in senior level positions and from some employees who see a portion of
This threat would be brought on from the Ontario Computer company, should they see the “Atlantic Bundle”, as a direct competitor to their computer line of products. Ontario, is very well versed in operational efficiency and they know how to cut cost, which means they could challenge Atlantic Computers to a piece war, which Ontario computers would be victorious, if Atlantic Computers is not prepared with a contingent response to their threat when it comes to price
They need their sales force to come together and show the real benefits of purchasing fewer servers and how it will save them money operationally. Then they need to educate their customers on why they are not getting the PESA software for free and why the price for the software can be seen as fair and reasonable. The Enterprise Systems Solutions Trade Show, is the perfect venue for Atlantic Computers and its sales team to ramp up on their sales pitch, when they are talking to business customers and which business could benefit the most from the “Atlantic Bundle”.
Secondly, they need to educate their customers that the “Atlantic Bundle”, is just that a bundle and that the PESA should not be viewed as an add-on when it is combined with the Tronn server. It should be made clear that the bundle is a packaged deal, with one set price that is sold without any free attachments.
The other strategy they have is talking to DayTraderJournel.com, this would allow Atlantic Computers, to test run the “Atlantic Bundle”. They are known as an exemplary customer and the information collected at the booth at the SME show could prove to be valuable, since they were looking to purchase four basic servers and cost were two very closely ranked considerations for this customer. This will help Jason Jowers, compare the 4 pricing options that he is developing, that we will consider and see, which
Rivalry among established firms is fierce. There are several factors that illustrate this: established market players (6.1). The product is highly standardized and the switching costs of the customers are low. Players are aggressive (6.2)
They follow a best-of-breed approach where they purchase separate packages that offer closer to optimal functionality instead of...
An organization’s pricing strategy will vary depending on multiple factors. An organization needs to understand their competition and market share, the distribution chain, and ultimate goal of customer retention. This paper will review the pricing strategies of Intuit.
After this decision internet distributors and Express respectively has to be considered as strong competitor due to the price-sensitivity of the electronic industry. Therefore A/S should work on its company image to highlight their advantages compared to discounters. Therefore A/S has to point out that they are aware of being not the cheapest but nevertheless will create more benefit for the customers by offering service and competence.
CompTech is a large computer products retailer and the company is looking to expand the company. However, the company is having significant problems in the hiring process for store managers as well as a problem retaining store managers working for the company. In the description given, it appears that the only specifications for the store manager position is the candidate must have a MBA degree or at least three years’ experience as a store manager. Normally, a job listing has multiple specifications listed in the job description to ensure that only the most qualified apply for the job. “Preparing job descriptions can help an organization clarify what it really wants to accomplish while at the same time letting the potential employee understand
EE105’s 1st grade teacher, Ms. Apple, completed the BASC-3 Rating Scales. Follow-up may be necessary for score in the at-risk classification range. Score in the clinically signification classification range usually warrant follow-up.
Nortel Networks Corporation, also known as Nortel, was an international telecommunications company in Ontario, Canada. It was founded in Montreal, Quebec in 1895. During the height of its success, Nortel made up more than one third of the total worth of all similar companies in Toronto and they employed 94,500 team members worldwide. (Gillies, 2009). On January 14, 2009, Nortel filed for protection from all its debts and creditors in the United States, United Kingdom, and Canada in attempts to remedy its debt and financial obligations (Gillies, 2009). Late in 2009, the Nortel disclosed that it would end all business transactions and sell off all of its parts. The period of bankruptcy protection
Jeff Bezo’s began Amazon in his garage in July 1995 with three Sun workstations setting on wooden doors for tables and extension cords running from everywhere (Academy of Achievement, 2010). Right from the beginning he was a visionary leaving his well paying job as a senior vice president with D. E. Shaw to begin Amazon.com (Academy of Achievement, 2010). Being the visionary that he is he saw an opportunity prompted by the huge growth rate of internet use in a single year and ran with it never looking back. Jeff realized that the internet had “no real commerce to speak of” so he began researching possible businesses (Academy of Achievement, 2010). “After reviewing 20 mail order businesses and deciding which could be conducted more efficiently over the internet than by traditional means he decided on books” (Academy of Achievement, 2010). He thought books were perfect because attempting to send huge catalogs for all the available books would be expensive and cumbersome, but an online resource database that was easy to navigate would provide customers with easy access and a single point from which to shop. “In 30 days, with no press, Amazon had sold books in all 50 states and 45 foreign countries, obviously by the success of Amazon he was right (Academy of Achievement, 2010). In a case study written by Javad Kargar called “Amazon.com in 2003” he stated that “Amazon's online store was a big hit, with about $5 million in the first year of operations” (2004). This huge success so quickly would have confirmed for Jeff that his idea was viable and drove him to continue to strive for more. Jeff Bezo’s charismatic-visionary leadership is the key to his and Amazon’s success.
Facing stiff competition the senior management needed to reconsider the pricing plan for Item 345. So in early 2004 they held a meeting to decide in which direction to go.
WorldCom started as a small long distance telephone service provider in 1983. In the 1990’s, companies were able to attain cheap and plentiful financing. This allowed them to quickly build transcontinental and transoceanic fiber optic networks. This allowed the company to grow financially and increase its customer base. In 1997, WorldCom merged with MCI Communications to become the second largest long distance telephone service behind AT&T. The merger of WorldCom and MCI was the largest corporate merger in US history at that time. Over the next six years, MCI WorldCom successfully acquired 65 other companies in order to expand their services and capabilities even more. Increasing its capacity helped keep WorldCom’s prices lower for its services,
“Supply manager Joe Smith was considering the purchase of 1,000 desktop Personal Computers (PC’s) for his organization.
In modern day business, there can be so many pressures that can cause managers to commit fraud, even though it often starts as just a little bit at first, but will spiral out of control with time. In the case of WorldCom, there were several pressures that led executives and managers to “cook the books.” Much of WorldCom’s initial growth and success was due to acquisitions. Over time, WorldCom discovered that there were no more opportunities for growth through acquisitions when the U.S. Department of Justice disallowed the acquisition of Sprint.
Historically the personal computer (PC) industry has sold its products at reasonably high prices yet garnered only small profit margins. One reason for this is the high competition in the PC industry which led to competitive pricing among producers. Analyzing the competitive environment of the PC industry, it is evident that there is very little barrier to entry in this market. PC's have very low physical uniqueness and are made of standard components that require very little expertise to assemble.
Priceline.com is an e-commerce site which when founded in 1998, brought forth a new angle to conduct business. Traditionally marketers scan the market to determine which prices purchasers are willing and able to pay for products or services. The sellers then offer their product for a price which meets their internal criteria. With priceline, instead of the seller setting the price, the buyer makes an offer of what he or she is willing to pay and sellers compete for the buyers business. This innovation represented a first in that general non commercial consumers have never been able to name the price they will pay and have sellers respond.
Cisco Systems, Inc. is a leader in networking for the internet, they develop hardware, software, and services to help create internet solutions that make internet networks possible. Cisco was founded in 1984 by a small group of computer scientists from Stanford University. They are a worldwide company with headquarters in: San Jose, California, Amsterdam Netherlands, and Singapore. Currently, they employ approximately 74,000 people throughout the world. Cisco operates on a set of values which include: change the world, intensely focus on customers, make innovation happen, win together, respect and care for each other, and always do the right thing. They show these values through global involvement in education, community, and philanthropic efforts. (Cisco, 2004)