Business Profitability & Effectiveness Consulting Economic and Financial Tools to Maximize Organizational Success Despite its position at the heart of our understanding of business and markets, microeconomics continues to be an underutilized tool of business strategy. This is the case for several reasons: Academic microeconomists emphasize writing, teaching, and the pursuit of theoretical studies over the implementation of their findings in the world of commerce; Business schools, having both limited class time and a need to convey an increasingly broad range of subjects, are unable to cover more than a superficial amount of micro theory; and, Most management consultants - generally business school graduates - have insufficient skills and training in economics to apply its powerful tools and concepts on behalf of their clients. As a result, only the most obvious and easily understood economic concepts, if any, are put to use in the typical organization. Bay Analytics has taken microeconomics out of the academy, translated it into plain English, and put it in the hands of organizational decision makers so that they can move beyond the prevailing B-school approaches to decision-making. Instead of guessing whether consumers will buy your new product for $X, we can help you do a "willingness-to-pay" study that will give you a precise answer, as well as tell you how much your customers value attributes such as added features, improved quality, or altered appearance. In order to position your new product against the competition, why not let us clarify its substitutes and complements and model your take rates given the interactions among them? The bottom line? Much management decision making fails to incorporate microeconomic principles that would have a favorable effect on organizational financing, operations, and profitability. This applies not only to firms in the private sector, but to public and non-profit organizations, as well. Let us put those tools to work for you in such areas as: Business Strategy Development and Operational Planning Competition Analysis & Strategic Initiatives Cost Analysis & Least-Cost Operational Tactics Economic Benchmarking Studies Factor (Capital, Labor, Technology) Asset Maximization Market Analysis & Firm/Product Positioning Marketing Metrics & Analytics Price, Production, Promotion Strategies Product, Service, Firm Value Optimization Productivity Studies Revenue Enhancement Programs & Tactics Risk Analysis — Antitrust, Environment, Regulation, Competition Strategic Branding Supply Chain & Production Optimization Valuation of Tangible/Intangible Assets & Intellectual Property Top Of Page Representative Business Profitability & Effectiveness Assignments Created wireless healthcare and M-commerce smart card strategies for the world's largest credit card association. Client's market positioning was assessed relative to the state of financial and healthcare services, the evolution of third-generation wireless technology, and current/forthcoming healthcare and mobile commerce initiatives. The assessment involved technical and market data reviews; querying key wireless system, VAR, network, HMO/PPO/ pay-for-service and handset manufacturers' representatives; and participating in industry working group meetings. Senior management input was solicited from client firm through the development and circulation of white papers on the state of wireless technology and alternative business planning options. A set of recommended smart card strategic alternatives was developed and ranked by cost, risk, feasibility, and pay-off. Completed a comprehensive market analysis and strategic pricing study for one of the largest Web hosting/intelligent networking/content delivery companies. Client firm's market was analyzed including competitive service offerings, consumer segments and buying patterns, and rival's prices, terms and purchase incentives. Based on the findings from this research, a strategy was developed and presented to senior management for: 1) positioning and pricing clients' services by customer segment, and for 2) effectively responding to initiatives by client's competitors. Developed strategic pricing structure for Internet streaming media company. Determined client's economic costs and competitors' pricing approaches and objectives, forecasted market uptake and likely responsive pricing moves by substitute and complementary service providers, and segmented client's customer base using demographic and willingness-to-purchase data. Created user-friendly program by which client could project the revenue results associated with alternative pricing tactics. Incorporated variable for possible taxation obligations which may be imposed by federal, state or local government entities at some future point. Undertook a comprehensive marketing study to establish competitive pricing for services offered by one of the nation's largest telecommunications companies. Descriptions of and prices for all residential services were incorporated into a survey administered to a representative sample of customers. The survey's findings were input to a specifically configured model from which customers' preferences and willingness-to-pay for each service were determined and consumption patterns forecasted. From this research, client was informed which customer types would pay how much for given services and service combinations. Top Of Page What We Do Industries Served Practice Areas What Is ESC? Selected Projects Selected Publications/Presentations