Market Dimensional Expansion, Collapse, Costs, and Viability
Author: Douglas Howarth
Publication Date: May 16, 2024
Published by: International Cost Estimating and Analysis Association
Abstract:
Most government programs have cost caps and minimum force requirements. Commercial projects usually begin with a budget, sales targets, and specifications. All too often, in both cases, producers and customers give little thought to the changing market structures they face. When it comes to Demand, markets self-organize to form up to four boundaries each, including 1) Upper (price-limited), 2) Outer (saturation-limited), 3) Inner (efficiency-limited), and 4) Lower (margin-limited) Demand Frontiers. When new market segments appear as different product forms with enhanced functionality over existing options, as the new markets grow, the product groupings they replace may contract across one or more Demand Frontiers. This paper examines preparing for these inevitable eventualities in an N-dimensional framework.
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Also below you will find the PDF of the Powerpoint presentation given at the 2024 ICEAA conference.