This PPT slide, part of the 43-slide Common Consulting Frameworks (How and When to Use) PowerPoint presentation, presents a framework for analyzing industry dynamics through demand and supply curves. It emphasizes how cost curve analysis can clarify price positioning for different market players based on specific demand levels. The vertical axis represents price, while the horizontal axis indicates quantity. The demand curve slopes downward, illustrating that as prices decrease, the quantity demanded increases. Conversely, the supply curve slopes upward, indicating that higher prices incentivize increased supply.

Key factors influencing demand shifts are listed on the right side. These include product value and quality, the availability of substitutes, consumer preferences, and economic trends. Each of these elements can significantly impact how much of a product consumers are willing to purchase at varying price points. For instance, if a product's perceived quality improves, demand is likely to rise, shifting the demand curve to the right.

On the left, the slide outlines factors that can cause supply shifts. These factors include technological advancements, changes in input costs, and regulatory impacts. For example, if production technology improves, it may reduce costs, allowing suppliers to offer more at lower prices, thus shifting the supply curve to the right.

Understanding these dynamics is crucial for decision-making. It helps executives anticipate market changes and adapt strategies accordingly. The insights provided can guide pricing strategies, product development, and market entry decisions. This framework serves as a valuable tool for assessing market conditions and making informed business choices.

EXPLORE MORE SLIDES FROM THIS PRESENTATION

EXPLORE MORE PRESENTATIONS ON

Consulting Frameworks Strategy Frameworks Consulting Training Company Analysis