Product line structuring : fact-based market analysis, set of alternatives, selection by profitability and stress tests.
Industry is structuring future product lines trying to find the right compromise between profitability, complementarity between products, ability to finance investments, etc...
With an environment full of uncertainties, what are the choices that will best resist the market conditions ?
COMONVENT will help implement a systematic 4 step process :
- Fact-based market analyis : internal outlook (history of sales, profitability, investments, costs..), competition, customers, future trends and constraints. Analysis of failures to meet profitability, listing of uncertainties that can impact the financial outcome.
- Creation of main alternative sets of product lines,
- Down selection and detailed quotation of chosen use cases, including sensitivity to external factors
- Generalised stress test on each of the use cases, playing with the incertainty factors
This methodology has many parts of the company contribute in its implementation, and it can deliver simulation results that are not all intuitive or accessible through past experience, but that can be used for a powerful communication.
It is sorting out the strategy that will minimize overall risk, over many possible futures.