Low Cost Business Models

IKEA has been very successful in implementing low cost model in furniture. I will show you all main elements were they were very successful: “big box” model built outside the city center, design, consistent message, diversified revenue streams, operational excellence, business scale

Raynair is an example of a great execution of the low cost model in airlines. They have used 1 type of aircraft and increased their capacity, they do only point-to-point and use cheap airports. Raynair is also master of operational excellence and has been also very creative on the revenue streams

Biedronka is a very good execution of low cost model in retail. Biedronka  keeps it simple on the operational side and they went deep into product management. I will show you how they managed to become a leader in Poland

Here I will show you how low cost works for Fitness clubs

Here I show how the low cost model works for hotels

In this section I will show you want drives the economics of low cost model. I will show you using the airlines examples how low cost carrier differ in comparison with regular players

In many cases you can get high end result from compounding effect in time or by getting small improvements in many areas. In this lecture I will explain the concept. The compounding effect is especially important with low cost carriers. You need a lot of small improvements to make the difference in costs. 

I will show you in this lecture where the difference in cost comes from using as an example the airlines espiecially data on the Raynair and Lufthansa

Hi

I hope you have understood the main characteristics and benefits of the low cost business model Let’s now move on to the Blue Ocean Strategy concept. Blue Ocean is a generalized approach to business innovation thanks to which you can produce new business models in old industries including low cost business model. In other words Blue Ocean Strategy is the approach that helps you produce proper low cost strategies. In this section we will discuss:

• What is Blue Ocean

• 4 action frameworks that help you produce a new business model (including low cost business model)

• 6 paths that you can take to achieve the new business model

• Examples of applying Blue Ocean Strategy

So, enjoy the section and I hope this will help you develop the low cost business model in your industry

One of the ways to create a profitable niche is to apply the so called Blue Ocean. Here I will discuss the general framework for that

For Blue Ocean very important is the concept of non-users that are pivotal for this strategy. Here I will discuss who do they have in mind and what type of users we have

In Blue Ocean there are 4 action framework. We will discuss them in details in this lecture

You can reach Blue Ocean by taking one of the six paths. You can look across. We will discuss them in details in this lecture

You can reach Blue Ocean by taking one of the six paths. You can look across. We will discuss them in details in this lecture

In this lecture I will discuss how Blue Ocean was implemented by Starbucks

In this lecture I will discuss how Blue Ocean was implemented by Citizen M

In this lecture I will discuss how Blue Ocean was implemented by Zappos

We will talk about the favorite method of Elon Musk that is also used to define the low cost

One of the ways in which you can come up with new business ideas is to use the 10x framework where you resort to so-called first principles. This is the favorite method of Elon Musk

There are 3 main ways in which you can improve an existing business. This will help you come up with the proper business idea:

• Make it faster

• Make it better

• Make it cheaper

Let’s imagine that you want to drastically reduce the usage of water. Use the 10x framework to achieve this.

In this lecture, we will solve the previously introduced case study.

In this lecture, we will solve the previously introduced case study.

In this lecture, we will solve the previously introduced case study.

In this lecture, we will solve the previously introduced case study.

Let’s imagine that you are an owner of a bus company and you want to find a way to make the cost per 1 seat cheaper. Use the 10x framework

In this lecture, we will solve the previously introduced case study.

In this lecture, we will solve the previously introduced case study.

In this lecture, we will solve the previously introduced case study.

In this lecture, we will solve the previously introduced case study.