What are two analytical tools useful for assessing competitive pricing and costs?

The selection of SWOT analysis and benchmarking as analytical tools for assessing competitive pricing and costs is advantageous because both frameworks provide valuable insights into a company’s competitive position and operational efficiency.

SWOT analysis focuses on identifying a company’s Strengths, Weaknesses, Opportunities, and Threats. By evaluating these internal and external factors, a company can better understand its cost structure relative to competitors as well as the pricing strategies that leverage its strengths or mitigate its weaknesses.

Benchmarking, on the other hand, involves comparing a company's processes, performance metrics, and products against those of leading competitors or industry standards. This practice allows a company to identify best practices in pricing and cost management, thereby informing strategic decisions that can enhance its competitiveness in the market.

The combination of these tools helps companies analyze how they stack up against competitors in terms of pricing and operational costs, leading to more informed strategic planning and profitability analysis.