Parts Classification

group 11, are parts that are exposed to high competition because they are easy accessible parts or have a low complexity, low perceived value, low proprietary position, elastic demand, and high price sensitivity. Group 13, is the complete opposite, these parts are exposed to low competition because they are hard to access/ Atlet unique parts or have a high complexity, high perceived value, high proprietary position, inelastic demand, and low price sensitivity. The medium accessible parts or group 12 are positioned in the middle between the two other groups. Each group have its own matrix where the parts that are more

Parts Matrix High Low HighCompetition Complexity

Parts Matrix High Low HighCompetition Perceived Value

Parts Matrix High Low HighVelocity Elasticity

Parts Matrix High Low HighVolume Price sensitivity

Volume Price Sensitivity Matrix 1.Low Volume Low Price Sensitivity 2.High Volume Low Price Sensitivity 3.Low Volume High Price Sensitivity 4.High Volume High Price Sensitivity Price Sensitivity Volume

Cost Analysis

Pricing Formula Vd*CAP*Life Cycle*Price Vd = Value Drivers CAP = Captivity (proprietary parts) Key Vd = Speed, Shop Profit, Quality or warranty and returns and a substantial component of OEM price competition

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