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Strategic versus Tactical Price to Win

Strategic Price to Win is used for the analysis of a broad market.  It is used to gain an in-depth understanding of the needs and desires of a customer, and how those needs are being met by competitors.  The results of a strategic Price to Win analysis enable you to identify underserved areas of the market, or measurable goals and objectives, and the high level plans for achieving them.
In the federal marketplace, strategic Price to Win helps companies find their niche and develop core business strategies.  In an environment where bid and proposal dollars are precious resources it’s of utmost importance to use those dollars wisely.  Strategic Price to Win helps identify the opportunities your company can, and should win.  It provides companies with insight regarding the marketplace, and where they can improve business strategies and customer relations.
But most people equate Price to Win exercises with specific opportunities, not broad markets.  This tactical Price to Win is understanding the context of a specific opportunity:  identifying customer needs and desires, likely competitor solutions, costing and pricing strategies, and the ultimate positioning tradeoff where your solution puts you in the “Win Zone.”
In the federal marketplace, tactical Price to Win is the analysis used most often by Business Development.  These projects involve looking at the capabilities competitors bring to a specific opportunity, as well as the price they will charge the customer.  In a world where “Best Value” contracts reign supreme, tactical Price to Win offers insight to the capability-price tradeoff, and increases Probability of Win for a company.
Price to Win is both a process and position.  It can be performed at both a strategic level, in the context of a broad market, and at the tactical level, in the narrower context of a specific opportunity.  In both cases, Price to Win is an ongoing, iterative process that helps you plan your work and effectively work your plan, increasing the efficiency of your capture efforts.