What is this service offering?

We determine the impact on cost or profitability of strategic decisions, and we estimate relative cost position versus competitors

Who might need this service?

Manufacturing and product companies that want to assess the cost or profit impact of strategic decisions, as well as public/non-profit organizations that want to analyze or influence the costs of critical products or supply chains (e.g. health products they procure or fund)

How do we do this? What deliverables might we provide?
Evaluation of Alternative Business Strategies
By integrating a variety of variables (such as positioning, product mix, volumes, feature levels, pricing, marketing investment, etc.) strategic cost analysis (SCA) can predict which strategies will maximize profit growth.
Critical Decisions
SCA can quantify the impact on cost and profit of major decisions, such as new products or technologies, or plant rationalizations
Procurement Strategies
SCA can be used to determine sourcing strategies that minimize total cost of ownership and predict product cost and price at future volume levels
Competitive Cost Assessment
SCA can be used to estimate a client’s cost position versus competitors, which in turn can help: identify cost reduction opportunities; determine whether to invest in a specific market, based on whether cost leadership can be attained; set cost targets required to keep pace with or build an advantage versus competition; or make improvements to business strategy, by assessing competitors’ approaches to achieving profitability.

Why Stone & Associates?

Few firms have our depth of experience in estimating costs external to a company (such as competitor, customer, supplier or supply chain), which are often critical to evaluate strategic decisions or gain insights on economic drivers of industry players.

We are particularly experienced at estimating competitor costs. To develop estimates of costs external to a company requires an understanding of fundamental cost drivers and an ability to configure cost models around them.

Project Examples
  • Strategic Analysis of Competitor Costs – Major Appliances, Specialty Glass, Consumer Glassware, Plastic Consumer Products
  • Competitive Strategy – Specialty Materials Co
  • Competitive Assessment – Plastics Products Mfr
  • Cost Modeling – Auto Mfr
  • Procurement Strategies –Clinton Foundation
  • Procurement Strategies – Oil/Chemical Co; Appliance Mfr
  • Plant Configuration & Rationalization Study – Appliance Mfr
  • Cost & Profitability Measurement System – Glass Container Mfr
  • Strategy Devt – Safety Products Mfr
  • Lean Case Studies
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