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Business Model Generation : Blog | Executive Coaching | CO2 Partners

CO2

(It is useful to to distinguish between two broad classes of business models Cost Structures: cost cost-driven and value-driven from the following categories Cost-driven, Value-driven. John Sullivan FORA.tv

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The Company Outsmarting Big Pharma in Africa

Harvard Business Review

That may be true, but then the firms that do carry out the R&D are also dominant in their developed domestic markets, where their margins can absorb the fixed costs of R&D and there's nothing to stop them from competing on a cost basis in Africa, particularly given the low production costs of most drugs.

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

Harvard Business Review

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. Since 2000, the Chinese economy has been growing at an increasing rate — from 6% per year in 2000 to 12% per year in 2010.

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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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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. In 2010, Ben's Friends got too big and costly to fund ourselves so we turned to crowdfunding.

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How to Know If a Spin-Off Will Succeed

Harvard Business Review

A 2010 meta-analysis detailed many of the different issues that make divestiture so hard to evaluate consistently. In parallel, it reduced its fixed costs by restructuring its industrial footprint and overhead structure; increasing sales, marketing, and R&D expenditures in targeted areas; and dramatically reducing working capital.

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Joint Ventures Reduce the Risk of Major Capital Investments

Harvard Business Review

For example, in 2010, Corelio and Concentra, two European media companies, established Coldset Printing Partners, a joint venture (JV) for their newspaper printing assets. But on the other hand, in order to safeguard the company’s future competitiveness, CEOs may have no other choice than to invest now.