Competitive-Cost Analysis: Scale and Utilization Calculations
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Publication Date:
March 07, 2001
Source:
Darden School of Business
An understanding of the factors that drive the microeconomics of a business provides the insight needed for strategic and tactical improvements in operational effectiveness. Competitive-cost analysis, a method for analyzing the cost structure of a company, represents a strategic application of cost modeling. The first note in this three-part series (UV3521) identifies the basic framework and principles for developing accurate and comprehensive cost models. The second note (UV3558) discusses specific techniques that will further assist in analyzing cost drivers for competitive analysis. This final note provides detailed guidance on calculating scale curves and utilization effects.
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Competitive-Cost Analysis: Scale and Utilization Calculations
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