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The Intelligence You'll Need

Price & Cost Structure

The Situation:
One of your competitors is able to consistently underprice your products and services. You need to know whether they are simply "buying" market share, or if they truly enjoy a competitive cost advantage. Chances are, price is just a symptom of a more debilitating cost structure at your firm.

Intelligence You'll Need:

• Cost structure
  • labor
  • materials
  • transportation
  • overhead
• Capacity and utilization
• Capital investment and depreciation
• Debt level/debt service
• Suppliers
• Integration level
• Shared costs