Low Cost Business Models

How to create a no-frill low-cost business model and kill the competition

Last updated 2022-01-10 | 4.6

- Understand the low cost model
- You will know when and how you can apply low cost model
- Build your own low cost business in your industry

What you'll learn

Understand the low cost model

You will know when and how you can apply low cost model

Build your own low cost business in your industry

* Requirements

* Basic knowledge of economics
* Some common sense and logic

Description

What is the aim of this course?

The success of many companies depends on figuring out a clever way to grow, earn or operate that will change drastically change the game, stack the cards in their favor. There are many interesting business hacks that give this result. In this course, I will show you how one of such business tactics – the low-cost models have been successfully implemented in many businesses. This powerful tactic applied has already disrupted many industries like airlines, hotels, retail. One of the best-known examples are IKEA, Southwest, and Raynair

This course is based on my 15 years of experience as a consultant in top consulting firms and as a Board Member responsible for strategy, performance improvement, and turn-arounds in the biggest firms from Retail, FMCG, SMG, B2B, and services sectors that I worked for. I have carried or supervised over 90 different performance improvement projects in different industries that generated in total 2 billion of additional EBITDA. On the basis of what you will find in this course, I have trained in person over 100 consultants, business analysts, and managers who now are Partners in PE and VC funds, Investment Directors and Business Analysts in PE and VC, Operational Directors, COO, CRO, CEO, Directors in Consulting Companies, Board Members, etc. On top of that my courses on Udemy were already taken by more than 110 000 students including people working in EY, Walmart, Booz Allen Hamilton, Adidas, Naspers, Alvarez & Marsal, PwC, Dell, Walgreens, Orange, and many others.

I teach through case studies, so you will have a lot of lectures showing examples of analyses, tools that we use. To every lecture, you will find attached (in additional resources) the Excels as well as additional presentations, materials shown in the lectures so as a part of this course you will also get a library of ready-made analyses that can, with certain modification, be applied by you or your team in your work.

In this course, apart from the case studies of companies that implemented the low-cost model I will show you the math behind the low-cost model that fuels the whole business and makes it so successful.

In what way will you benefit from this course?

The course is a practical, step-by-step guide loaded with tones of, tricks, hints, examples that will show you where you can go with your business. There is little theory – mainly examples, a lot of tips from my own experience as well as other notable examples worth mentioning. My intention is that thanks to the course you will know:

How low-cost model work?
How you should build it in your industry?
Where do you have to look for improvements to be competitive?
How to estimate your competitive advantage using data from your industry?

You can also ask me any question either through the discussion mode or by messaging me directly.

How the course is organized?

The course is divided into the following sections:

Introduction. I begin with a little intro into the course as well as into the low-cost model
Examples of Low-Cost Models. Here I show examples of low-cost models from different industries. You will also find also links to a lot of additional materials that should help you in building your business.
The math behind the low-cost model. In this section, I will show you want drives the economics of the low-cost model. I will show you using an example of airlines how a low-cost carrier differs in comparison with regular players
The Blue Ocean Strategy. To create a low-cost business, quite often you will be using the Blue Ocean Strategy. In this section, we will have a look at how to implement it.
10x current solution using first principles. In this section, we will discuss the so-called first principles that will help you find much better, more optimal solutions. This is the favorite method of Elon Musk

We will be adding new sections in the coming months and expanding existing ones

You will also have access to many additional resources

Links to interviews and presentations with more detailed data
Data showing the impact of some of the hacks on the business
Links to books worth reading

So enjoy the course and if you have any questions let me know

Who this course is for:

Business analysts
Entrepreneurs
Consultants
Startups founders

Course content

6 sections • 34 lectures

Introduction 5 lectures

Introduction Preview 02:21

Here I will show you what you will learn about low cost model and why you should take the course

About me Preview 01:47

I will talk briefly about me, my experience and how come I know so much about hacks and tricks used by different sort of companies

Low Cost Model - introduction Preview 03:47

I will discuss here the general concept of low cost mode, when it makes sense and in what industries it is already used

How to deal with Blurry image Preview 02:04

Here I will show you what to do if a blurry image appears

How to reach additional resources Preview 01:05

Here I will show you how to find additional resources attached to the coruse like Excel files, presentations, links etc.

Case studies of successful low cos models 5 lectures

IKEA Preview 06:03

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

Ryanair Preview 05:59

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 Preview 03:17

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

Fitness Clubs Preview 03:17

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

Low cost hotels Preview 02:58

Here I show how the low cost model works for hotels

Math behind the low cost model 3 lectures

Introduction to math for low cost models Preview 03:35

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

Compounded Effect Preview 01:52

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.

Raynair vs regular airline - math behind the low cost model Preview 03:27

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

The Blue Ocean Strategy 8 lectures

The Blue Ocean Strategy vs Low Cost Business Models Preview 00:38

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

The Blue Ocean – Introduction Preview 03:54

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

The Blue Ocean – Non Users Preview 03:04

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

4 frameworks Preview 01:07

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

Blue Ocean Strategy – 6 paths to achieve it Preview 04:42

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

Blue Ocean – Starbucks Preview 03:03

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

Blue Ocean – Citizen M Preview 03:25

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

Blue Ocean – Zappos Preview 03:05

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

10 x current solution using first principles 12 lectures

10 x current solution using first principals – Introduction Preview 00:46

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

10 x current solution using first principles – General Framework Preview 05:11

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: