CO2

JANUARY 2, 2011

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. These are: Customer Segments – An organization serves one or several customer segments.

Business Model 141

Business Model Executive Coaching Execution Blog 141

Harvard Business Review

DECEMBER 17, 2014

The management consulting firm Eden McCallum, from London, does strategy work much like McKinsey, the Boston Consulting Group, and Bain – but with one important exception: none of its roughly 500 consultants are on the payroll. Eden McCallum, thus, manages to keep its overhead and other fixed costs at a minimum.

McCallum 13

McCallum Competitive Advantage McKinsey Consultative 13

Harvard Business Review

MARCH 28, 2011

Companies keep costs down by building supply chains that generate economies of scale. That was effective when companies made products in their home markets using locally produced components. Variabilizing costs. Companies can lower their fixed costs and increase those that fluctuate with the market.

Supply Chain 15

Supply Chain Fixed Costs Price Crisis 15

Harvard Business Review

DECEMBER 1, 2017

You have to consider salaries, marketing budget, office size, technology services, and on and on. Too often, assumptions about the potential market and its clients can cloud our judgement about expenses. The costs soon proved much greater than expected.

Strategy 9

Strategy Budgeting Cost Price 9

Harvard Business Review

OCTOBER 27, 2016

A full-time job provided the steady income needed to support our traditional version of the American Dream: the highly leveraged, high-fixed-cost house; the cars; the latest consumer goods. If you had a full-time job, you won. All of that is changing.

Disaggregation 8

Disaggregation Insurance Retail Fixed Costs 8

Harvard Business Review

JULY 27, 2017

In 2012, one of us — Gregor Gimmy, a California-based serial entrepreneur and former IDEO consultant — accepted a new role at BMW’s corporate R&D headquarters. And the fixed cost from “touchpoint-to-pilot” are immense. Top startups already have market leading solutions.

Venture Capitalist 8

Venture Capitalist Meyer Innovation Fixed Costs 8

Harvard Business Review

MAY 8, 2012

Skype , for example, competes with fixed-line carriers by offering free mobile Skype calls. Google has its own contender in the market, Google Voice. Bharti's innovative business model converted fixed costs in capital expenditure to a variable cost based on usage of capacity. The trend is spreading.

Outsourcing 10

Outsourcing Wireless Telecommunications Core Competence 10