competitors have in a price war?
• What is the client’s market
position?
• What are the strategic implications
of the full potential cost position?
Tactical questions
7
Relative Cost Position
•The relative cost position (RCP) concept •Applications •RCP Steps •Client example •Challenges •Key takeaways
Agenda
8
Relative Cost Position
• Where should we focus our cost
reduction efforts? (e.g., wage rates, amounts of raw material inputs)
• Which cost elements would
decrease significantly with an increase in scale?
Build, compare, and reality check cost bars
Calculate practical full potential cost position and savings
Draw strategic implications
• Be persistent and creative, but ethical
Doing an RCP involves several steps: