Competitive-Cost Analysis: Cost-Modeling Techniques Harvard Case Solution & Analysis

Competitive cost analysis method for analyzing the cost structure of the two competing companies is a strategic use of cost modeling. The first note in this series of three articles on the competitive cost analysis identifies the key conceptual framework and principles for the development of accurate and comprehensive models cost four categories of expenditure drivers - design, installation, location and type. Framework combined with economic modeling can help operations analyst / consultant achieving the quantitative rigor needed to provide solid solutions operations at the strategic and tactical level. This note provides a general discussion of four specific tools that will continue to assist in the analysis of cost drivers for competitive analysis. These methods include the dismantling analyzes public data sources, the scale of the curve and the curve. The last remark in this three-part series will provide step-by-step guide to assessing the extent of curves and calculation of impact. "Hide
by Robert D. Landel, Timothy M. Laseter, Ken Heckel, Angela Huang 6 pages. Publication Date: Mar 08, 2001. Prod. #: UV3558-PDF-ENG

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