Cost Structure

4 important questions on Cost Structure

What is cost structure?

Describes all costs incurred to operate a business model 


What kinds of activities incur costs?

Creating and delivering value, maintaining customer relationships, and generating revenue


How does a cost-driven business models focus on minimizing costs wherever possible?

by aiming at creating and maintaining the leanest possible cost structure, using low price value propositions, maximum automation, and extensive outsourcing.
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What characterizes a  value-driven business model?

Premium value propositions and a high degree of personalized service

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