Atlantic Computer is a large manufacturer of servers and other high-tech products. They are currently competing in two different server market segments: high-performance and basic. The largest segment is the high-performance with a projected demand of around 200,000 units in 2001. These servers perform the functions of running complex applications including supply chain management, enterprise resource planning and business intelligence. Although this may be the largest segment, it will not be Atlantic Computer's main focus at the time. There is a trend of increasing growth at this time in the basic server segment. .
Atlantic's new server, the "Tronn," will be competing for market share in this segment. Ontario Computer, Atlantic's main competitor, only focuses on the basic server segment and has attained a good deal of leverage in the area of cutting costs with developing servers. Ontario has been the out right leader in the segment from the beginning, currently they hold a 50% market revenue share, and Atlantic Computer needs to figure out a way to cut into the market before Ontario runs away with it. When comparing both the "Tronn" and Ontario's basic server "Zink" side by side they have virtually the same performance speeds and capabilities. The difference is that Ontario has adopted a low price strategy and is able to produce and sell the "Zink" at a lower price than Atlantic's basic at the moment. .
Atlantic Computer's secret weapon is the inclusion of their software, know as the "Performance Enhancing Server Accelerator" or the "PESA" for short, along side the Tronn server. The PESA increases the performance of their basic server similar to the capabilities of running 4 separate basic servers. When bundled together the PESA and the Tronn have the potential to be the undisputed best choice when comparing Alantic Computer and Ontario Computer.
