Benefit
  
Determines your own cost position for specific products and services.
  
Creates clarity about your own cost reduction potential: How much flab do we have on the scales?
  
Basis for deriving realistic, long-term cost reduction and efficiency improvement targets.
  
Shows the potential cost position of suppliers, which can be used to derive arguments for price negotiations (Lopez effect).
  
Basis for make-or-buy decisions.
  
Diagnoses the potential cost position of competitors (industry diagnosis).
  
Basis for the development of intelligent pricing strategies for market entry.
  
With ongoing realization: best starting position for all conceivable price developments.