Case Study: an aircraft company achieves faster competitive aircraft cost assessments with PRICE Systems

Faster Competitive Assessments with Parametric Estimation

An aircraft company needed to quickly perform a competitive cost assessment for a fighter jet sale opportunity against five international competitors. To make a strategic pricing decision, they required an independent evaluation of the most likely costs for all competing aircraft, a complex task involving analysis of technology maturity, developmental status, and production rates. They engaged PRICE Systems to address this challenge.

PRICE Systems implemented a solution by first building a market knowledge base and then creating a parametric model using PRICE H to estimate costs for both the customer's aircraft and the five competitors. This included a sensitivity analysis to develop uncertainty ranges. The result was a comprehensive summary analysis for pricing strategy that, for the first time, included profitability projections for the competitors. This enabled the aircraft company to prepare a more comprehensive and higher probability bid.