CRI 800 Lecture Notes - Lecture 5: Spotify, Netflix, Car Rental
25 Feb 2017
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Document Summary
Cost structure describes the most important costs incurred to operate the business model. Bmc suggests companies broadly fall into two main categories of cost structures. Focuses on quality, is usually more expensive. If customers have one thing, they might buy other things. Oprah has tv show, tv network, magazine, products. Any given activity gives access to other activities. Wide scope of activities, revenue, mechanisms, etc. The cash a company generates from each customer segment. Catering to niche markets rather than blockbusters. 2 or more customers that depend on each other. People who search + people whose content is searched + advertisers. Offering free things in hopes that you will get stuff back in the long run. Some people are using it for free, some people are paying. Look outside of your company for innovation. No matter what, you"re paying that cost. Might vary, large or small, can change frequently.
