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Business Model Generation : Blog | Executive Coaching | CO2 Partners

CO2

It is useful to distinction between three motivations for creating partnerships: Optimization and economy of scale, Reduction of risk and uncertainty, Acquisition of particular resources and activities) Cost Structure – The business model elements result in the cost structure. (It John Sullivan FORA.tv

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The Company Outsmarting Big Pharma in Africa

Harvard Business Review

Cipla, an India-based producer of low cost antiretroviral drugs (ARVs) is one of the biggest success stories in the pharma industry. For example, the $28 million acquisition of Meditab in 2010 provide formulation skill as well as production and marketing expansion in China and Uganda, while the acquisition of ?laç laç Ticaret Anonim ?irketi

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Joint Ventures Reduce the Risk of Major Capital Investments

Harvard Business Review

For instance, the cost of building and equipping a leading-edge semiconductor fab has climbed to $7 billion, as the technology required to make more advanced chips is getting more complex. Driven by economies of scale, container ship size has been increasing for decades, with the largest ships now costing roughly $200 million.

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What BMW’s Corporate VC Offers That Regular Investors Can’t

Harvard Business Review

Among the 30 top companies in seven of the largest industries, almost half had a VC-fueled accelerator in 2015, up from just 2% in 2010. And the fixed cost from “touchpoint-to-pilot” are immense. In essence, the venture client, instead of equity, buys the technology of a startup when it is still a venture to do so.

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China’s Slowdown: The First Stage of the Bullwhip Effect

Harvard Business Review

Consequently, although companies should cut costs now, they should be on the lookout for the quick rebound that is likely to follow. During an economic crisis, the exaggerated decline in orders can be especially damaging to upstream suppliers that have high fixed costs tied to production assets.

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Deliver Big Impact on a Small Budget

Harvard Business Review

We didn't want to burden the organization with fixed costs. Almost everything had to be free, and the few things we paid for had to be scalable so that the unit costs would eventually approach zero. Second, we standardized all management coordination on a low-cost but elegantly simple project management software called Basecamp.

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Constraints on Health Care Budgets Can Drive Quality

Harvard Business Review

From my experience heading Scotland’s National Health Service from 2010 until last August (and before as its director of health care policy and strategy), I know that such constraints can unleash innovations that will lead to better care — and better health — for communities. Working under a fixed-cost ceiling was, of course, difficult.