Understanding the economics of long-term competitive advantage in clients’ markets is the key to delivering sustainable commercial impact. A basic truth of economics is that profits go to scarcity. We take time to understand where a client has the ability to do something that its customers value and that competitors can’t copy.
Businesses often spend a lot of time collecting and analysing evidence. In Frontier’s experience, managers who take a structured approach to using evidence can take the guesswork out of decision-making. We help our clients do just that:
Multi-channel retailing: We appreciate the importance of assessing the economics of multi-channel delivery. E-commerce is changing the way people shop and presents threats and opportunities for businesses. We look at the economics of these changes and help our clients’ prepare business models and make better-informed strategic decisions.
Root cause analysis: We bring together financial performance measures, business execution and customer behaviour research to identify the real economics of how money is, or isn’t, being made. Whether it’s in response to a specific trading problem, or simply hacking through a tangled undergrowth of conflicting management information, we get to the bottom of what’s going on and what it’s costing.
Regulatory brand: It is sometimes important to understand the economic impact of changes in regulation on current and future competition in markets and on specific companies. We help clients develop a regulatory stance and brand that gives them commercial advantage.
Sustainability: We review the effectiveness of business models from different risk perspectives: economic, competitive, environmental and regulatory. Business models will only be sustainable if they can deliver across each of these dimensions.
Balance sheet levers: We provide economic support for major balance sheet structuring decisions, such as the economics of sale and leaseback of owned retail stores.