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Cost drivers examples in service industry
Cost drivers examples in service industry





cost drivers examples in service industry

Some companies are less concerned with the cost implications of a particular business model design, and instead focus on value creation. No frills airlines, such as Southwest, easyJet, and Ryanair typify cost-driven business models. This approach aims at creating and maintaining the leanest possible Cost Structure, using low price Value Propositions, maximum automation, and extensive outsourcing. Therefore it can be useful to distinguish between two broad classes of business model Cost Structures: cost-driven and value-driven (many business models fall in between these two extremes): Cost-drivenĬost-driven business models focus on minimizing costs wherever possible.

cost drivers examples in service industry

But low Cost Structures are more important to some business models than to others. Naturally enough, costs should be minimized in every business model.







Cost drivers examples in service industry