Global Advisors | Quantified Strategy Consulting

pricing

In this episode of the Global Advisors Spotify sequence, James and Lucy revisit Michael Porter’s Five Forces and reinterpret the framework for modern executives operating in volatile, digitally shaped markets. They trace its origins in industrial economics, examine its enduring value in understanding how profit is structurally distributed across industries, and address its limitations in a world shaped by platforms, network effects, data advantages, regulation, and AI. The discussion sets out the Global Advisors approach: move beyond qualitative strategy language, segment markets precisely, quantify structural forces with evidence, link analysis directly to capital allocation, and continuously recalibrate strategy as market conditions change. The result is a practical argument for more disciplined, data-backed, and ethically grounded strategic decision-making.

PODCAST: Quantifying Porter’s Five Forces for CEOs

"The Black-Scholes model (or Black-Scholes-Merton model) is a fundamental mathematical formula that calculates the theoretical fair price of European-style options, using inputs like the underlying stock price, strike price, time to expiration, risk-free interest rate and volatility." - Black Scholes -

Term: Black Scholes

Price elasticity measures how sensitive customer demand is to changes in price. By understanding whether demand for a product is elastic (highly responsive to price changes) or inelastic (less responsive), businesses can optimize pricing to maximize revenue, profit and market share. Term of the day: Price Elasticity

Term: Price Elasticity

Our Spotify podcast discusses hot to get transfer pricing right.. We discuss effective transfer pricing within organizations, highlighting the prevalent challenges and proposing solutions. The core issue is that poorly implemented internal pricing leads to suboptimal economic decisions, resource allocation problems, and interdepartmental conflict. The hosts advocate for market-based pricing over cost recovery, emphasizing the importance of clear price signals for efficient resource allocation and accurate decision-making. They stress the need for service level agreements, fair cost allocation, and a comprehensive process to manage the political and emotional aspects of internal pricing, ultimately aiming for improved organizational performance and profitability. The podcast includes case studies illustrating successful implementations and the authors' expertise in this field.

PODCAST: Effective Transfer Pricing

Our Spotify podcast highlights that despite familiarity, most managers do not apply CVP analysis and get it wrong in its most basic form. The hosts explain cost-volume-profit (CVP) analysis, a crucial business tool often misapplied. It details the theoretical underpinnings of CVP, using graphs to illustrate relationships between price, volume, and profit. The hosts highlight common errors in CVP application, such as neglecting volume changes after price increases, leading to the "margin-price-volume death spiral." The hosts offer practical advice and strategic questions to improve CVP analysis and decision-making, emphasizing the need for accurate costing and a nuanced understanding of market dynamics. Finally, the podcast provides case studies illustrating both successful and unsuccessful CVP implementations.

PODCAST: A strategic take on cost-volume-profit analysis

Flower pricing - Photo by Siora Photography on Unsplash

Strategy Tools: ‘Price-Volume-Profit’ Part 1 – A strategic take on cost-volume-profit analysis

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