Strategy

Strategy powered by economics

An economics toolkit is a powerful way to hone in fast on the behaviour of customers and competitors, leading to better commercial decisions. We’re passionate about using the power of economics. It helps us understand the dynamics of the market you compete in, and gets to the truth about your position within this market.

What our customers say

The unique combination of sharp objective analytical interrogation with real commercial understanding and insight make Frontier a top tier partner when considering the strategic direction of our business. Their help in many areas has been invaluable to Tesco over the years.

Dave Lewis

Former CEO, Tesco

Thoughtful, insightful and practical, Frontier are the critical friend you'd want on your team.

Sarah Gillard

Former Director, Insight and Assurance, John Lewis Partnership

If you want the usual answers to your questions go to the usual places. Alternatively, go to Frontier, who will push and challenge you to get to the real answers, delivered by the smartest folks in advisory in London

Peter Jackson

Chief Executive Officer, Flutter

Exceptional analysis meets creative problem-solving

To design the right analysis for the right question, we use a hypothesis-based approach.

Our people are known for looking beyond the obvious and taking a fresh and creative approach to solving critical strategic problems. This may involve bringing in new and innovative methodologies, or relevant expertise from other sectors.

It’s rigorous strategic advice, communicated with refreshing clarity.

Corporate strategy

Which markets should you be in, and which should you not? This is the most fundamental question for an overarching corporate strategy.

Changes in technology, regulation and consumer behaviour are then what creates the parameters for your success.

We help boards tackle these issues by applying the economics of strategy and competition, rigorously and impartially.

This includes:

Understanding and exploiting competitive advantage
Economic modelling and assessment of specific markets
Scenario development and modelling
Anticipating competitor strategies and responses
Market entry and exit, M&A support and valuation
Capital allocation and portfolio optimisation

Product and data strategies

Units within a business are working in markets that have their own dynamics, customers, competitors and regulators.

Strategic business unit decision-making must focus on what drives value and what choices your customers are making.

Our goal is to help clients organise themselves, their products and their data to develop winning propositions and secure the best from their position in the value chain.

This includes:

Understanding where better data analytics will generate value (and where it won’t)
Product and proposition development and innovation
Designing and running effective tests and trials of propositions
Pricing strategy including multichannel and online
Supply and procurement strategies
Improving management information

Customer and behavioural analytics

Behavioural economics could be the most important work you ever do for your business. Leading your customers to change their behaviour is the outcome you want and need. But surveys and focus groups simply don’t do the job.

We help clients to develop their competitive advantage through customer strategies, including:

Understanding your customers’ true feelings, motivations and behaviours
Unpicking price perceptions
Analysing loyalty and lifetime value
Switching and retention analysis
Segmentation based on actual behaviour and economic value
Designing rigorous trials and experiments
Building capability in behavioural analysis

Pro-active regulatory strategy

Making regulation feel like less of a constraint to you than it is for your competitors is clearly a competitive advantage. The key to that is to engage with the regulators and get ahead of the debate.

We devise pro-active strategies and ways to respond to change in regulation in heavily and lightly regulated environments.

We also help those coming before economic regulators and inquiries such as the Competition and Markets Authority, European Commission, and the Financial Conduct Authority.

In summary, we do:

Regulatory strategy development
Regulatory brand audit and strategy
Regulatory risk and scenario assessment
Engaging regulatory authorities
Support in investigations

Click to read

An introduction to Frontier's innovation

framework and recent client stories.

Delivering insect-based feed at scale

Frontier Economics has explored the potential for black soldier fly (BSF) to become an economically viable alternative to soy as the protein input to animal feed, while also tackling the UK’s estimated annual 13 million tonnes of food waste.

Mission: “Clubcard for TV”

Designing an industry-leading data strategy for a UK TV broadcaster

Frontier’s award-winning strategy worked out where viewer data could increase viewers and revenue, and unlock insights for commissioners. In three years, 10 million viewers signed up.

Read the case study

Keeping prices sharp

Behavioural analytics on millions of seats sold every year for a low-cost airline

Frontier reviewed the pricing strategy to determine the truth about price and loyalty, shutting down needless internal debate and developing “early warning indicators” to show when pricing might need to change.

Read the case study