Introduces students to the analysis of relative cost, a basic technique strategists art. Among the strategists complex quantitative analysis of relative cost analyzes may be the most common. The objective of relative cost analysis is simply to estimate the costs of a company compared to its rivals. Companies consider the relative costs for a variety of reasons: to anticipate what is likely to respond to a price change, to predict how a price war can evolve to a rival, test if a cost advantage, believes is real and sustainable; decide how little a company must bid to win a clear competitive market, identify opportunities to reduce internal costs, estimated in the context of an acquisition, how the cost of an acquired company can be low and reasonable price could be in business, and so on.
Jan W. Rivkin,
Release Date: October 26, 2007. Prod #: 708462-PDF-ENG
Solution analyze the relative costs of case