Pricing strategies should factor in the client’s objectives, its cost structure, the competitive landscape, and the market elasticity of demand (sometimes referred to as economic value). Pricing optimization techniques are closely connected to product-line development because different customer segments generally need different products/services that in turn correspond to different price points.
Due diligence refers to an ensemble of investigative techniques used to define a given organization’s performance. It is often used in situations of M&A where the consultant seek to recommend one or just a few interesting targets for the M&A to its client, based on the client’s objectives. One essential contribution from the consultant is often in developing a comprehensive set of performance measures that can be quantified and appraised.
The goal of benchmarking is to innovate by incorporating best practices. It is not just an imitation game. It consists in identifying, understanding, and learning from alternative processes and practices that drive superior performance (in operations, sales, etc). This can be done internally by comparing similar activities within the client’s organization, or externally by comparing with competitors and in particular the so-called best-in-class companies.
Outsourcing allows a company to focus on its core competencies more efficiently. The contracted third party company’s business model generally leverages focus and scale, as it specializes in the outsourced activities. The outsourcing company in turn benefits from relatively low cost and state of the art activities without having to internalize them.
Supply Chain Management
This activity consists in synchronizing and optimizing all phases that a product or service passes through from initial procurement to delivery. To put it simply, one can divide an organization’s operations in two parts: the value chain and the supply chain; while the value chain defines the chain of successive activities that add value, the supply chain refers to the logistics that enable these activities to take place.