Type of business organization and by utilizing new raw materials.

Most technopreneur undertakes risks that has the

 Single/sole proprietorship 1 possibility of earning a profit. A technopreneur
 Partnership 2 (4)or more starts out with nothing but an 'idea' defying
 Corporation 5 or more existing products, practices and systems in which
Types of companies he can think of a new solution through the use of
technology and innovate it eventually.
1. Service concern - rendering concern ex.
Laundry Five Traits of a Technopreneur
2. Merchandising - Deals with buying and 1. Strong Communication Skills that Close
selling of foods ex. Sari-sari store Deals Technopreneur should possess a
3. Manufacturing - deal with buying raw strong communication skills that close deals
materials and came up with new product as they will diverse people to their business
ex. Furniture ideas and products.
2. Product Management Knowledge
Capital It is significant that a technopreneur have a
Micro - less than 50k dep understanding of his idea or product in
Cottage - 50 001 to 500k order to present it to the target customers in a
Small business - 500 001 to 2M detailed and precise manner.
Medium - 2 000 001 to 20M 3. Deep Technical Understanding
Aspect of the product As a technopreneur, it is important to be tech-
1. Management aspect oriented as you will deal with the technical
2. Technical aspects of your idea or product
3. Production 4. Take Big Risks
4. Financial aspect Dealing with competition will basically improve
the way technopreneurs think outside of their
Branch of accounting BUDGETING box. They have to take risks as not all idea or
3 year - period of adjustment product are meant to be successful in the
business world.
Types of Entrepreneur 5. Persistence
Not all entrepreneur can be a technopreneur
Innovative Entrepreneur is a person that have
but all technopreneurs are entrepreneurs that
such a great passion in discovering and
is why they have to acquire persistence to
developing new products, new ideas and new
achieve their goals.
processes. They are the one who is willing to take
risk in every new innovation because they enjoy
Difference between Entrepreneur and
challenges.
Technopreneur
Imitating Entrepreneur is a person who
immediately copy the existing products made by
the innovative entrepreneur because there is no
such new inventions or new innovations..
Fabian Entrepreneur is a type of person that is
skeptical about the changes that will be made in
the organization. They are not decided to develop
new innovations unless they are satisfied with the
result or the outcome of the released products in
the market.
Drone Entrepreneur are reluctant to change as
they are happy with the result of their business
even if they have financial losses. They are not The Entrepreneurial Process
eager to make any changes in their organization.
On the other hand, a Technopreneur is a person
who perceives an opportunity by introducing new
products and services, creating new forms of
o Opportunity Analysis This phase refers to
establishing demand and competitive analysis
of the market. An entrepreneur should have a
clear vision by making a thorough study the
market potentials to create
o Business Planning The entrepreneur should
have a written business composed of the
organization's future goals, how to ach goals
and the timeframe within which these goals
are to be Business planning usually includes
marketing strategy, finnancial operational
viewpoint.
o Gathering Resources include sources of
financing like lines of financing like lines of
credit and investment capital, technology,
network of contacts and publicity.
o Implementation is a process of execution
about what has planned and utilizing the
numerous resources for the success
business.
o Scaling and Harvesting is a process where
the organization will encounter challenges.
The organization will experience painful point
for growth for stability and continuity of the
business operations.
THE TECHNOPRENEURIAL PROCESS
 Idea generation
 Idea screening
 Concept testing
 Business analysis
 Prototyping
 Test marketing
 Commercialization
 Monitoring and Evaluation
Idea Generation This is the process of creating,
developing and communicating abstract, concrete
or visual ideas. It includes goals, strategies,
concepts, design, style, plans and actions to
come up with possible solutions for actual
problems and opportunities.
Idea Screening is a process that evaluates and
contrast new prospective ideas for your business.
It is where assessment will be instigated to make
sure that your ideas is related to the business.
The idea screening criteria are used to determine
compatibility and whether the idea will earn profit
or could return on investment.
Concept Testing Concept testing is the process
of testing new or hypothetical products or
services before they are launched [Management
Study Guide]. It is probably the possibility of
generating the best product that has
Business Analysis Business Analysis is a
process of identifying what the business needs
and determining solutions to business problems
the will improved the process, management and
the financial status quo to deliver value to the
stakeholders.
Monitoring and Evaluation Every business
should be monitored and evaluated according to
the performance in the market. Monitoring and
Evaluation is important for the business to
diagnosed problems and improve what is needed
to stayed in the competition. Thru evaluation the
organization will identify the performance rating of
the business.
Commercialization is the process of introducing
new products and services to the market. With
commercialization, an organization entails
production, distribution, marketing, sales,
customer support to achieve the commercial
success of the new product or service.
Successful Technopreneur
1. Diosdado Banatao - discover chip
computer (born in Cagayan valley)
2. Winston Damarillo - from Bohol his is the
chief executive order and cofounder of
morphlabs.
3. Leandro leviste - the son of Loren
Legarda Leviste at the age of 23 Become
technopreneurship and founded solar
Philippines
4. Joey conception - training (gonegosyo)
5. joey Gurango - founder of software
companies
4 P's
Product, Price, Place, Promotion
INNOVATION
If we hear the word "Innovation" we usually
come up with different definitions and points of
view about it. Innovation is something that
involves developing, creating new concepts and
new ideas that will be useful for the target
customers.
Joerg Gemuenden defines Innovation as a
process, involving multiple activities, performed
by multiple actors from one or several
organizations, during which new combinations of
means and ends, which are new for a creating
and adopting unit, are developed or produced,
implemented and transferred to old and new.
Barack Obama quoted in Business Week's "In"
that Innovation is the creation of something that
improves the way we live our lives. That is the
reason why innovation is changing the lives of the
people extremely fast and the pacing of the
development in technology.
4 Types of Innovation
1. Sustaining Innovation also known as routine
innovation happens on an incremental basis,
is often a response to customer and market
demands or improvements in technology. The
company obtained feedback from the
customers about the product and services
rendered to improve and provide greater
value to the customers.
Apple company which founded by Steve
Jobs, Steve Wozniak and Ronald Wayne
continue improving, innovating and upgrading
their products to gain customer satisfaction
and maintain customer's trust and loyalty
throughout the years.
On the other hand, Intel Corporation is an
American multinational corporation and
technology company headquartered in Santa
Clara, California, in the Silicon Valley.
Currently, Intel's innovation in cloud
computing, data center, Internet of Things,
and PC solutions is powering the smart and
connected digital world we live in.
Amazon, is probably one of the biggest e-
commerce worldwide. They intend to sell
books before but now, they are selling more
than hundreds of products globally where they
continue to improve their products and
services in order for their customers to be
satisfied and pleased.
2. Disruptive Innovation - Clayton
Christensen popularized the idea of
disruptive innovation in the book "The
Innovator's Solution," which was a follow up to
his "The Innovators Dilemma" published in
1997. Christensen posited that there were two
types of technologies that businesses dealt
with. Sustainable technologies were those
that allowed a business to incrementally
improve its operations on a predictable
timeframe.
For DISRUPTIVE INNOVATION, most
companies did not pay too much attention on
the smaller business because they are most
likely focus on how they will improve their
products and services.
3. Breakthrough Innovation Breakthrough
innovation according to Idea scale is defined
as an innovation from inside a company that
pushes something t next level. It is innovation
that opens the company to new changes the
way customers interact with the market or the
industry.
4. Basic Research This type of innovation
begins with the discovery of some new
phenomenon. Basic Research is a key-driver
to innovation as it provides information about
a certain problem and derive with possible
solutions.
Basic research is often described as research
without any clear goals, or science to satisfy
the curiosity of a lone scientist without anyone
else even realizing that it exists.
PRINCIPLES OF SUSTAINABLE INNOVATION
As an investor, you have to be knowledgeable
about the principles for a sustainable innovation.
According to the principles in the classic book
"Robert's Rules of Innovation: A 10-Step Program
for Corporate Survival," by Robert F. Brands. He
introduced the different principles that could help
startup investors.
1. Inspire. In innovation, there should be a
leader who can inspire others. They need to
possess positive attitude, vision and ability to
communicate so that people will be able to
acquire what they should emphasize in
innovating products or services.
2. No risk, no innovation. Most technopreneurs
are risk taker because they are innovating
new products or services which they have no
assurance if it will survive in the market.
3. New product process. Innovation starts with
a vision: an innovator should understand what
they intend to develop for the benefit of their
consumers and undergo with a structured
process which includes idea generation,
evaluation, prototyping, customer feedback
and success metrics.
4. Ownership. The business leader has all the
ownership on the new products and
innovation in such a way that he/she
generates the ideas and develop the
appropriate business model.
5. Value Creation. Once there's an innovation,
those new products should have a value and
 will be served as a solution to real customer
problems.
6. Accountability. It is a standard that the team
members and leaders have the full
responsibility and obligations in the innovation
7. training and Coaching. Proper hiring and
staffing of people in the organization is a must
to make sure that they cautious of their
responsibility and right mindset to per the
future innovations.
8. Idea Management. In building products and
rendering quality services, the organization
should value the presence of the customers
and sales members in order to have a
brainstorm of what will be the best for the
company.
9. Observe and Measure. It is a need to track
the results if already an ideal ROI (Return on
Investment). That is how company will
measure their profitability whenever they
release new products to sustain the needs of
the company as well.
10. Net Result and Reward. If the company
achieve their RO incentives for their
employees is one way of motivation. The are
several ways to motivate people aside from
financial aspect such as recognition for a job
well done.
Idea Presentations
Presentation is a big challenge to everyone
because we neve know if the audience will listen
to you and if they are interested about your topic.
That is why in every presentation, the presenter
must be fully prepared and knows what is the
topic thoroughly. There ar various creative
presentation ideas that can be helpful to those
who are presenting a proposal to a prospective
client, presenting the output of your work and
presenting to potential investor with a goal to
inspire the audience.
Here are the Ten (10) Incredible Presentation
Ideas that will inspire your audience authored by
Annie Pilon to Small Business Trends
1. Storytelling Presentation - If you are
presenting, make su that it is not only about
the facts of your product or services but rather
you can tell a story where they will be
interested to listen and focus too.
2. Musical Presentation - It will be more
inspired to try to set some captivating tune
that will help your presentation to stand out
and in order to be remembered by prospective
clients.
3. Video Presentation - It is desirable to make
presentations that will have both visuals and
audio content to make it as a video. It is more
appealing to the audience or clients as they
can envision what your products or services.
4. Photo-Only Presentation If you will use the
Photo-only presentation this is to make your
audience or clients prone from reading slides
word-for-word. The photos or images must be
related to what you are presenting.
5. Immersive Presentation Most conferences,
seminars and start-ups usually use the
immersive presentation where they encourage
their audience to get involve on discussions,
games and open forum. Giving them a part to
play on the presentation and providing them
with new initiative for the business.
6. Question Presentation It is preferably
advisable to ask questions to your audience in
order for you to know if they are interested
and make them involved in your presentation
and you can have an idea if they understand
your products or services to be offered.
7. Demonstrative Presentation if you are
selling a specific product, the demonstrative
presentation is the best way to promote.
Some clients would like to see and touch the
product for actual demonstration and they can
even try using the product themselves.
8. Humorous Presentation - A speaker with a
great humor will make the presentation livelier
because the audience will become active in
the discussion. However, the speaker should
be careful of using jokes to some clients to
avoid misunderstanding.
9. Animated Presentation - The animated
presentation is a one way of demonstrating
the product instead of using a video. You can
film the product in a 3D style where the
audience or your client can visualize the entire
interface of the product.
10. Props Presentation - This is not a techy
presentation that you need computers
because you will use visual aids to make a
creative presentation.
Idea Selection
An innovative leader will encounter challenges in
selecting the best ideas among the list of different
innovative process. What are the criteria of
choosing the best ideas? What will be the
purpose of th ideas? There are usually different
methods that can be used in process of selecting
ideas. The steps introduced by Michael Putz Lead
innovation management consists of the following:
Step 1-Rough Selection
In the first step, the chaff has to be separated
from the when i. e. the ideas without potential
have to be selected quickly. For t purpose, an
"ABC analysis" can be used, where ideas are
divided into three classes:
 A-ideas, those that are absolutely
necessary for further processing.
 B-Ideas are those where you disagree
about good or bad and are uncertain,
 C ideas that have no value and are to be
rejected.
The A-ideas are definitely going into the next
round, the B-ideas are discussed and it is decided
together per idea whether the ide will be adopted.
C ideas are no longer considered.
Step 2-Fine Selection
In the next step, the sifted ideas are further
selected. The method of "dots gluing" has proven
its worth. Each participant receives five sticky
points and can distribute them to their own
favorites. If you count the points together you get
a ranking.
If there are less than ten ideas, the "rating"
method can also be used. Each participant gives
each idea between 0 and 5 points. The points are
also added up and you get a ranking and a
priority.
Step 3-Detailed Analysis
In the detailed analysis, ideas are qualitatively
analyzed and evaluated on the basis of criteria.
For product ideas, for example these are
 customer benefit
 differentiation potential and competitive
factor
 technical and economic feasibility.
Customer needs – one of top priorities in
business is to meet the demands and needs of
the costumer.
5 Myths about customer needs
1. Customers have latent needs; needs they
don’t even know they have.
2. Customers struggle to articulate their
needs.
3. Customers’ needs change quickly
overtime.
4. Customers’ wont know what they want
until they see it.
5. It is impossible to ever know all the
costumers needs.
Market Research and Validation – an innovative
leader should conduct a market research and
validation to justify the needs of the customer.
Market Validation – is the process of determining
whether your product is of interest to a given
target market.
Market Validation involves a series of customer
interviews with people in your target market.
Decision Making Process
5 steps process that an innovation leader can
used
1. Problem or need recognition.
2. Information Search
3. Evaluation of Alternatives
4. Selection Stage
5. Evaluation of Decision
Problem or Need Recognition
As an innovative leader you must identify the
different problems or need recognition of the
consumer. The needs of the consumers are the
basis or foundation of creating or producing a
new product services in the market. By assessing
the needs of the consumer, an innovative leader
can generate excellent ideas for innovation.
Information Search
When the problem occurs, there should have a
solution. And to develop a solution an innovative
leader should be resourceful in such a way that
he or she can think of bright ideas. Information
search of products and services that will satisfy
the needs and wants of the consumer.
Evaluation of Alternatives
In determining the needs and wants of the
consumer, the innovative leader should provide
different choices of products.
Business Model
Business Model Canvas
Business Model canvas was generally used by
startup companies or organization that serve as a
guiding tool to think of a better solution on how to
generate new innovating ideas and apply the
strategies in marketing the products or services.
The Business Model Canvas was proposed by
Alexander Osterwalder based on his earlier book:
Business Model Ontology. It outlines nine
segments which form the building blocks for the
business model in a nice one-page canvas. You
can find a detailed explanation in his bestselling
book "Business Model Generation" [canvanizer].
Figure 9 illustrates the Business Model Canvas
and the key nine segments.
The nine elements that provides the business
key drivers that is based on the Business
Model Canvas consists of the following by Alex
Cowan.
1. Customer Segment
2. Value Proposition
3. Channels
4. Customer Relationships
5. Revenue Streams
6. Key Activities
7. Key Resource
8. Key Partnerships
9. Cost Structure
1. Customer Segments: Who are the
customers? What do they think? See? Feel?
Do?
a. Segment Dimensions - Do you have a
single or multi-sided market? If you have a
multi-sided market you'll have least as
many segments as you have sides. One
example of the multi-sided market is a
media property like CNN.com wherein
they have readers on the one side and
advertisers on the other. This will function
effectively to both traditional and
technology savvy customers. af
b. Segment Composition - You should be
able to visualize the individual customer
types as "Personas" as for an instance,
what kind of clothes that most buyers
want, what kind of gadgets are they
interested with. You should understand
what they think, see, feel and do in your
product.
c. Problems, Needs, Habits and Current
Alternatives - What job are you doing for
the customer? What need are you
fulfilling? Make sure that you know what
the customers' really want and need at the
same time, identify several alternatives
that your customer uses today. In this
sense, you have to make a market
research where you can talk to people and
hear what's their interests.
If you will engage on the Business Model Canvas
make sure to print it out in order for you to have a
chance to write significant things related to your
business ideas, try to figure out what are the
needed information and aspects that can give
substance to your canvas.
2. Value Propositions: What's compelling about
the proposition? Why do customers buy, use?
A value proposition refers to the value a
company promises to deliver to customers
should they choose to buy their product. A
value proposition is also a declaration of intent
or a statement that introduces a company's
brand to consumers by telling them what the
company stands for, how it operates, and why
it deserves their business [Twin, 2019).
The best way to identify your value
propositions is to jot it down on a paper and
evaluate how it fulfill your customers. Some of
the most common value propositions are:
1. Newness
2. High Performance
3. Ability to customize
4. Design
5. Brand/status
6. Price
7. Cost reduction
8. Risk reduction
9. Convenience
3. Channels: How are these propositions
promoted, sold and delivered? Why? Is it
working?
The Channel Building Block describes how a
company communicates with and reaches its
 Customer Segments to deliver its Value
Proposition.
5 types of Channels Phases
1. Awareness- In business, you need to
think of ideas on how to reach out to your
consumers to introduce the company's
products and services.
2. Evaluation - Before indulging into the
process of manufacturing the products
and finalizing the concepts of the services
that you can offer to the customers; it is a
great plan to first conduct an evaluation so
that the company will be able to assess
the organization's Value Proposition.
3. Purchase - Nowadays, there are
customers that are using - online shopping
whether Lazada, Shopee, Amazon and
eBay. In online shopping, there are
options for customers on how to purchase
the product such as self-checkout and
payment procedures.
4. Delivery - One value proposition to
customers is the convenience and faster
delivery of products.
5. After Sales - How will the company
provide post-purchase customer support?
The After Sales is where customers
warranty in buying the products or using
the services. This is one factor that is
significant to the customers, where they
can be assisted such as call center, return
policy and customer assistance.
4. Customer Relationships: How do you
interact with the customer through their
'journey?
A customer relationship is an important aspect
if you are doing a business because your
customer will be able to interact with you, they
can ask questions precisely about the
products and services that the company is
offering.
Good customer relationships are based on
customer experience-what it's like for people
to do business with you. According to BDC
Client Experience Manager Chris Palin, that
experience is all about how you exceed
customers' expectations.
"Research shows that just 'satisfying customers
isn't enough to guarantee they'll come back," says
Palin. "You need to go above and beyond. That's
true whether you run a coffee shop where
regulars want to feel like a part of the family or an
auto-parts company whose customers demand
high quality and responsive service."
Customer relationship has three benefits that can
provide to the company or organization.
Customer retention: Companies that do a better
job of managing customer relations are more
likely to see higher customer retention rates
Customer Loyalty: When you have a good
history with your customers, it makes it more
difficult for your competitors to lure people away
from your brand.
Customer Satisfaction: Positive customer
relations give companies more insight into their
customer's problems because it creates an open
channel of communication for relaying customer
feedback.
5. Revenue Streams: How does the business
earn revenue from the value propositions?
Revenue is the amount of money that is
brought into a company through its various
business activities (e.g. sales of products and
services).
A Revenue Stream is the building block
presenting the cash a company generates
from each Customer Segment. Most
businesses need at least one great revenue
stream to earn money.
Revenue Streams can be generated in many
different ways and you can use a mix of these
different ways for your company.
 Sale of physical product: The customer
pays in cash for the product and the
customer is then free do whatever she or
he wants with it such for instance books,
furniture and gadgets.
 Usage fee: The customer pays a user fee
for a particular service, the amount paid
depending on the usage., customer
charge. If the customer takes foods in the
hotel, they will be also charge for what
they consumed.
 Subscription fee: The customer pays, for
example, once a month, or yearly, for a
particular service. charge on the monthly
subscription and if they exceed the usage,
they will pay for it also. The company let
their customers pay an amount every
month.
  Lending/renting/leasing: This Revenue
Stream grants someone the right to use a
particular product for a fixed period of time
in return for a fee.
 Brokerage fees: Through this Revenue
Stream, your company gets its revenue
from an intermediate service.
 Advertising: Your business may charge
fees for advertising a product, service or
brand.
 Volume and unit selling: Your company
charges a fixed price for a product.
However, if the customer choses to buy
your product in higher quantities, they
could get a discount (either by a lower
price or additional products).
6. Key Activities: What uniquely strategic things
does the business do to deliver its
proposition?
Key Activities are the most important tasks a
company must carry out in order to fulfill its
business purpose. To be successful, a
company must carry out key actions that are
primarily dictated by its business model.
Key activities building block creates a bridge
between your value propositions and the
customer segments' needs. Some typical key
activities that are commonly practiced by most
organizations are listed below:
Research and Development
The research and development department are
required to liaise with all other functions of the
company whether it be production, marketing or
sales. The typical functions of a research
department are mentioned below;
 New Product Research: In every
business, producing a new product needs
a lot of effort from ideas to the production.
 New Product Development: Through the
research and development department,
the product research eventually leads the
development of the product due to the
results achieved from the research phase.
 Existing Product Updates: Research
and Development must make sure to
examine the existing products if it requires
an upgrade according the consumer's
needs and benefits.
 Quality Checks: The R&D department
will collaborate with the Quality Assurance
Team in controlling and do inspection
process on the products.
 Innovation: The R&D team is also
responsible for keeping an eye on
innovations and new trends
Production
Production management consists of a number of
activities which are outlined below;
 Selection of product and design: the
first step is to select the right product and
the right design for the product.
 Selection of Production Process: this
stage consists of deciding what production
process the organization will be using
including the right technology, machines,
inventory management system, etc.
 Selecting Right Production Capacity:
The production management must have
full knowledge of the expected demand for
the product
 Production Planning: The production
manager must decide on the routing and
scheduling of the product.
 Production Control: One of the most
important concerns in making a product is
coordinating the interaction of people,
materials and machinery in order to
produce products on a set time frame.
 Quality and cost Control: in today’s
economically driven world, consumers
won't the maximum quality for the
cheapest price and access to the internet
and a world of options make them more
discerning and fickler.
 Inventory Control: This is where most
products are being checked to make sure
that there will be no overstocking or
understocking.
 Maintenance and Replacement of
Machines: The production manager must
monitor the condition of the machines and
schedule regular maintenance
Marketing
The Marketing department is responsible for the
growth of the company by getting word of the
company's existence and the value it provides to
its customers. The functions of the marketing
department are explained below;
 Strategy: The top management or the
senior members of the marketing team are
responsible for drafting
 Market Research: have the full
knowledge on how to market the products
and services of the company. They
 undergo a series of studies to improve the
strategies
 Product Development: The marketing
team works in conjunction with the product
development team constantly. This is done
by identifying possible gap areas in the
market
 Communications: The marketing team is
responsible for all communication to go
out in the market regarding the product.
 Sales Support: Marketing also works
closely with the Sales team by providing
them with customer leads
 Events: Marketing is also responsible for
organizing and executing events such as
seminars, product launches, exhibitions,
Sales & Customer Services
Sales and customer service play a key role in the
purchase and post purchase behavior and
experience of your customer.
• Handling Problems: Customer service
representatives are the ones that handles
customers call in case they need to clarify
something
• Assisting in Sales: Customer
representatives help increase the sales of
the organization because they are the
front officer to their customers.
• Clerical Tasks: are representative of the
organization that handles the role of the
customer services representatives
wherein if customers would like to inquire
about the product and what are the
possible suggestions.
7. Key Resources: What unique strategic
assets must the business have to compete?
Key resources are the main inputs that your
company uses to create its value proposition,
service its customer segment and deliver the
product to the customer.
Types of Key Resources
1. Physical Resources - are what we call
tangible resources that most companies or
organization uses to create its value
proposition.
2. Intellectual Resources - These are non-
physical, intangible resources like brand,
patents, IP, copyrights, and even
partnerships.
3. Human Resources - are specifically the
people behind the organization. The
employees are the most important assets
of an organization.
4. Financial Resources - includes cash, lines
of credit and the ability to have stock
option plans for employees.
8. Key Partnerships: What can the company
not do so it can focus on its Key Activities?
Key Partners are the relationships that you
have with other business, governmental, or
non-consumer entities that help your business
model work. These can be the relationships
that your company has with your suppliers,
your manufacturers, business partners, etc.
Four Types of Partnerships
1. Strategic alliances between non-
competitors: This provide an idea where
two companies will develop harmonious
relationship.
2. Coopetition: "Coopetition" combines
"competition" and "cooperation" into one
idea. It may seem that these two concepts
are diametrically opposed, but in fact,
competitors can often benefit from
cooperating with one another strategically.
3. Joint Ventures to develop new
businesses: A company may join another
company to create a different entity which
may be more profitable for the both of you
than if you were to operate separately.
4. Buyer-supplier relationships: In every
business, the buyer and supplier should
incorporate the characteristics of trust,
quality, and commitment between them to
maintain an amicable relationship to
achieve success.
9. Cost Structure: What is the business' major
cost drivers? How are they linked to revenue?
Cost Structure defines all the costs and
expenses that your company will incur while
operating your business model.
There are two main categories of cost
structure: value-driven and cost-driven.
Value-driven cost structures is to create more
value in the product itself, not necessarily
producing the product at the lowest possible cost.
Examples of this would be Michael Kors, Louis
Vuitton, and Rolex.
Cost-driven cost structures focus on minimizing
the costs of the product or service as much as
possible. Examples would be Cebu Pacific
Airlines and CD-R King in the Philippines.