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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.

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Groupon Doomed by Too Much of a Good Thing

Harvard Business Review

ACSOI essentially measures Groupon's profits before subtracting its subscriber-acquisition costs and stock option-based compensation. In the first quarter of 2011, Groupon posted a net loss of $113.9 Secondly, expecting a business to be profitable quickly forces it to keep its fixed costs low.

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

Harvard Business Review

In fact, in 2011 BMW had also founded a corporate venture capital (CVC) unit, called BMW iVentures, but it exclusively invested in service startups. And the fixed cost from “touchpoint-to-pilot” are immense.

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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.

Company 11
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Why Tesco’s Strengths Are No Longer Good Enough

Harvard Business Review

If round after round of profit warnings was not enough – group operating profits fell 20% between 2011 and 2013 and are likely to fall another 30% in 2014 — the company recently announced it had overstated its first-half profit by about $400 million. Troubles at Tesco, the UK’s leading retailer, are mounting.

Retail 11
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Constraints on Health Care Budgets Can Drive Quality

Harvard Business Review

Working under a fixed-cost ceiling was, of course, difficult. Preventive, coordinated, and team-based care has proven a successful strategy for managing these high-cost, high-utilization patients. (A The Parliament would vote on an expenditure limit and the NHS had to live within that limit.

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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. This is exactly what happened during 2010 and 2011 as the global economy was bouncing back.) Senate Banking Committee to save his competitors.