Cost Structure

What are the most important costs inherent in our business model?

Which key resources are most expensive?

Which key activities are most expensive?

Is your business more:

1. Cost driven (leanest cost structure, low price value proposition, maximum automation, extensive outsourcing)

2. Value driven (focused on value creation, premium value proposition)

 

Sample characteristics:  fixed costs (salaries, rents, utilities), variable costs, economies of scale, economies of scope

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