Quantitative Modeling

Description

BLCG_webBanner_quantitativeModeling

When the numbers matter, a quantitative model helps to predict and clarify the impact of operational changes.

Brightleaf Consulting Group’s Quantitative Models go beyond a standard financial model to show the impact of changes in various business elements on business performance.

Our models simulate business operations – revenues from multiple sources, expenses, and factors that may require additional capital spending or hiring.  This greatly assists the planning process and clarifies business management.

Our models have been used in:

  • Budgeting for annual expenses and capital investment
  • Pro Forma generation for business plans
  • Legal negotiations for financial settlements
  • Decision making tools for planning expansions, targeting acquisitions, and capital purchases

Case Study – Product Development and Pricing

Challenge:

A sensor manufacturer wanted to improve its product development strategy to improve sales and compete more effectively in a challenging market.

Process:

Brightleaf performed market research of various products in the inertial sensor market to identify specifications, quality, and prices. To prevent competitive response, the client’s name was never shared.

The data was entered into a model that ranked the features in importance to calculate the performance of the product. A Value Map, created by plotting the performance against price, was then used to visually compare the competition and to identify opportunities.

PriceVPerformance400

This model was then expanded to use as a market price prediction tool by marketing and sales.

Outcome:

With far greater understanding of their competition and existing products in the market, the client designed and marketed products that better met customer needs with a stronger value proposition. The dynamic model provided a structure to determine product pricing and predict market prices for hypothetical products.

Related Projects

Back to Top
Enter your Infotext or Widgets here...