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Low Cost Business Models

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Based on 438 ratings
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Asen Gyczew

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, and 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 model has been successfully implemented in many businesses. This powerful tactic applied has already disrupted many industries like airlines, hotels, and retail. One of the best-known examples are IKEA, Southwest, and Raynair   

Read more

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, and 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 model has been successfully implemented in many businesses. This powerful tactic applied has already disrupted many industries like airlines, hotels, and 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 I have carried out or supervised over 90 different performance improvement projects in different industries that generated a total of 2 billion in 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 On top of that my courses on Udemy were already taken by more than 182 000 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, and tools that we use. To every lecture, you will find attached (in additional resources) the Excels as well as additional presentations, and 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 modifications, 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 tons of, tricks, hints, and 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

Enroll now

What's inside

Learning objectives

  • 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

Syllabus

Conclusions

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


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

Read more

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

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

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

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.

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

Traffic lights

Read about what's good
what should give you pause
and possible dealbreakers
Provides a practical, step-by-step guide with tricks, hints, and examples, making it highly beneficial for entrepreneurs seeking actionable strategies
Includes Excel files, presentations, and materials that can be adapted for use in various projects, offering a valuable resource library for business analysts
Explores the Blue Ocean Strategy, which is a generalized approach to business innovation that can help learners produce new business models in old industries
Examines the 'first principles' method, popularized by Elon Musk, to help learners find better and more optimal solutions for business challenges
Focuses on case studies and examples, which may not suit learners who prefer a theoretical or academic approach to understanding business models
Requires learners to have access to Excel, which may pose a barrier for some students without access to or familiarity with the software

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Reviews summary

Practical insights on low cost business models

According to learners, this course provides a practical and actionable overview of low-cost business models. Students particularly appreciate the use of real-world case studies like Ryanair and IKEA, finding them insightful and easy to understand. The course is seen as a solid foundation for grasping the core concepts and mechanics. While some might find certain sections less detailed, the overall consensus is that it offers great value and is highly recommended for its clear explanations and examples.
Some topics could benefit from more detail.
"Some parts felt a bit rushed, could use more in-depth analysis on specific aspects."
"While great for an overview, advanced learners might find it lacks depth on certain topics or industries."
"I wanted a bit more detail on the financial mechanics discussed."
"Good pacing for an introduction, but perhaps a bit fast on the later, more complex models."
Instructor shares valuable professional insights.
"The instructor's background as a consultant and board member adds significant credibility and real-world perspective."
"Benefited from the instructor's vast experience shared throughout the course."
"Instructor clearly knows the subject matter very well from practical experience."
Provides a strong starting point for the topic.
"It's a very good starting point to understand how the low cost model works and how to apply it."
"This course gives a solid basic understanding of the low-cost business model."
"Great course to get a fundamental understanding of this type of business strategy."
"I feel I have a good foundation after completing this course."
Concepts are explained in an accessible manner.
"Instructor explains the concepts in a very understandable way. The flow is logical and easy to follow."
"Very clear and concise explanation of complex business ideas."
"The explanations are simple yet effective, making the low-cost model easy to grasp even for beginners."
"Found the course easy to follow and the explanations very clear."
Focuses on how to apply models in practice.
"The course is practical and shows you how to actually build and implement these models in your own industry."
"Lots of tips and hints from the instructor's experience are very helpful for practical application."
"Liked the focus on actionable steps rather than just theory."
"I learned practical ways to estimate competitive advantage using data."
Course uses relevant, practical case studies.
"The course is full of great examples of companies applying these models - Ryanair, IKEA, etc. Very practical and easy to grasp."
"I really liked the case studies from different industries. They made the concepts much clearer and relatable to real business scenarios."
"Seeing how companies like Ryanair implemented these strategies was very insightful and helps connect theory to practice."
"The case studies are a highlight, showing real-world application and proving the concepts work."

Activities

Be better prepared before your course. Deepen your understanding during and after it. Supplement your coursework and achieve mastery of the topics covered in Low Cost Business Models with these activities:
Review Core Business Concepts
Reinforce foundational business knowledge to better understand the nuances of low-cost business models.
Browse courses on Business Strategy
Show steps
  • Review basic business principles.
  • Study key concepts like value proposition and market segmentation.
  • Take a practice quiz on business fundamentals.
Read 'The Lean Startup'
Understand the principles of lean methodologies to apply them to low-cost business strategies.
View The Lean Startup: How Today's Entrepreneurs Use... on Amazon
Show steps
  • Read the book and take notes on key concepts.
  • Identify how lean principles can be applied to reduce costs.
  • Discuss the book's concepts with peers.
Read 'Blue Ocean Strategy'
Deepen understanding of Blue Ocean Strategy to identify opportunities for low-cost innovation.
View Blue Ocean Strategy, Expanded Edition: How to... on Amazon
Show steps
  • Read the book and highlight key concepts.
  • Identify examples of companies that have successfully implemented Blue Ocean Strategy.
  • Discuss the book's concepts with peers.
Three other activities
Expand to see all activities and additional details
Show all six activities
Create a Blog Post on Low-Cost Strategies
Solidify understanding by writing a blog post explaining different low-cost strategies and their applications.
Show steps
  • Research different low-cost business strategies.
  • Outline the key points for your blog post.
  • Write a draft and revise for clarity and accuracy.
  • Publish your blog post on a platform like Medium or LinkedIn.
Analyze a Low-Cost Business
Apply course concepts by analyzing a real-world low-cost business and identifying its key success factors.
Show steps
  • Select a low-cost business to analyze.
  • Research the company's business model and cost structure.
  • Identify the key factors that contribute to its low-cost advantage.
  • Prepare a presentation summarizing your findings.
Develop a Low-Cost Business Plan
Synthesize course knowledge by creating a comprehensive business plan for a low-cost venture.
Show steps
  • Identify a potential low-cost business opportunity.
  • Conduct market research to validate the opportunity.
  • Develop a detailed business plan including financial projections.
  • Present your business plan to a group of peers for feedback.

Career center

Learners who complete Low Cost Business Models will develop knowledge and skills that may be useful to these careers:
Business Owner
As a Business Owner, one must create and implement business strategies from the ground up. This course dedicated to low-cost business models is designed to help you build and scale your business effectively. Understanding the low-cost model, the course provides a practical guide to building a sustainable, competitive business. The course's insights into implementing a blue ocean strategy and applying first principles thinking, championed by Elon Musk, are particularly valuable for creating a unique and successful business. The course provides the tools to optimize business operations.
See salaries and explore the career path for Business Owner
Entrepreneur
As an Entrepreneur, you identify opportunities and take risks to launch new ventures. This course on low-cost business models provides practical strategies for creating cost-effective and scalable businesses. The course teaches how to build low-cost models in any industry, which helps you identify business opportunities that can be profitable. Learning about the math behind low-cost models and the blue ocean strategy can help you create innovative and disruptive solutions. For those starting a new business, this course is particularly relevant.
See salaries and explore the career path for Entrepreneur
Strategy Consultant
As a Strategy Consultant, you advise organizations on how to improve their performance and achieve their goals. This course focused on low-cost business models provides a framework for identifying and implementing cost-effective strategies. The course teaches how to build a low-cost business in any industry, giving you a versatile perspective for various client engagements. This will ensure the Strategy Consultant is able to advise clients in a range of sectors. The course's discussions of the blue ocean strategy is helpful for developing innovative approaches that give the business a competitive edge.
See salaries and explore the career path for Strategy Consultant
Management Consultant
A Management Consultant improves an organization's efficiency and effectiveness. This course explores low-cost business models, which are invaluable for consultants aiming to streamline operations and reduce expenses. The course's practical, step-by-step guide, loaded with examples, helps Management Consultants apply these models in real-world scenarios and determine where to look for improvements to be competitive. The insight into the economics of low-cost models is crucial for driving significant cost reductions that benefit clients.
See salaries and explore the career path for Management Consultant
Operations Manager
An Operations Manager oversees the production of goods or provision of services. This course on low-cost business models helps you identify and implement efficient strategies. Understanding the math behind the low-cost model, taught in the course, is key to optimizing operations and reducing overhead. Because the course teaches about the blue ocean strategy, the operations manager will learn how to create a profitable niche. This helps the Operations Manager ensure that the business can deliver top-quality products or services at the lowest possible cost.
See salaries and explore the career path for Operations Manager
Business Development Manager
As a Business Development Manager, you identify and pursue new business opportunities to drive growth. This course helps understand low-cost business models, which you can then leverage to attract clients by offering them efficient, cost-effective solutions. The course shows ways to build a business in any industry, which is useful for any Business Development Manager to know. Learning about the math behind low-cost models helps when crafting proposals that highlight cost savings, making you more persuasive and effective in acquiring new business. The sections covering case studies and the blue ocean strategy may be particularly helpful.
See salaries and explore the career path for Business Development Manager
Process Improvement Specialist
A Process Improvement Specialist analyzes and improves organizational workflows to increase efficiency and reduce waste. Because the course teaches about low-cost business models, the specialist will learn strategies for implementing operational changes that lower costs. Learning the math behind the low-cost models teaches the specialist how to quantify the impacts of changes. Case studies from the course show successful implementations, providing a benchmark for improvement. This equips the specialist with the tools to improve an organization.
See salaries and explore the career path for Process Improvement Specialist
Product Manager
As Product Manager, you are responsible for the strategy, roadmap, and feature definition for a product or product line. This course on low-cost business models provides insights into pricing strategies and feature prioritization to maintain competitiveness. Learning how to build a low-cost business, as taught in the course, can help you develop products that balance cost and quality. Knowledge of the blue ocean strategy helps craft unique products that disrupt the market.
See salaries and explore the career path for Product Manager
Pricing Analyst
A pricing analyst researches and analyzes data related to product or service pricing. This course helps better understand the overall economics of a business. Knowing the math behind the low-cost model also helps evaluate different options. Because the course teaches how to build a business in any industry, the pricing analyst will be well-equipped to handle any business. Being familiar with the blue ocean strategy from the course will give insights into pricing policies.
See salaries and explore the career path for Pricing Analyst
Supply Chain Analyst
As a Supply Chain Analyst, you oversee and optimize a company's supply chain operations. This course on low-cost business models provides strategies for reducing costs in the supply chain without compromising efficiency. You will know where to look for improvements to be competitive. You will also improve your mathematical modelling skills. The insights into supply chain management practices can help you identify areas for improvement. You will know how companies implement low-cost strategies.
See salaries and explore the career path for Supply Chain Analyst
Market Research Analyst
A Market Research Analyst studies market conditions to examine potential sales of a product or service. This course on low-cost business models will help you understand the competitive landscape and identify opportunities for cost-effective market entry. The course provides insights into how different industries implement low-cost strategies, which helps you evaluate market trends and consumer behavior. Understanding the principles of a blue ocean strategy can assist in identifying untapped market segments. The analyst will develop a better understanding of the low cost space.
See salaries and explore the career path for Market Research Analyst
Business Intelligence Analyst
As a Business Intelligence Analyst, you analyze data to identify trends and opportunities for improvement. This course on low-cost business models helps you evaluate business strategies and their impact on cost efficiency. Because the course involves examples of analyses and tools that are used, the BI analyst will learn the ropes quickly. This knowledge helps create data-driven insights that inform strategic decisions related to cost management. The BI will also know how to build their own low cost business in any industry.
See salaries and explore the career path for Business Intelligence Analyst
Data Scientist
Data Scientists analyze, process, and model data to interpret and create predictive models. This course may provide a unique perspective on applying data science to optimize business models for cost efficiency. Knowing the math behind the low-cost model allows for statistical testing. It will also hone the skills of the data scientist. When the course teaches you how to build a low cost business in any industry, the data scientist will be able to apply their skills in multiple contexts.
See salaries and explore the career path for Data Scientist
Project Manager
A Project Manager plans, budgets, oversees, and documents all aspects of a specific project. This course on low-cost business models helps you manage project budgets. You will also learn how to find much better, more optimal solutions. The mathematics behind the low-cost model is crucial for delivering projects on time and within budget. The insights from case studies help you learn from successful implementations, avoiding potential pitfalls. Because the course teaches how to apply the blue ocean strategy, the Project Manager can seek creative ways of handling problems.
See salaries and explore the career path for Project Manager
Financial Analyst
Financial Analysts provide guidance to businesses and individuals making investment decisions. This course on low-cost business models may help you understand different business models. The course teaches the math behind the low-cost model, providing a good framework for evaluating the financial viability of different investment options. Understanding how companies achieve low costs can inform better investment strategies and risk assessments. The course's emphasis on real-world examples enhances your ability to accurately predict and analyze investment outcomes.
See salaries and explore the career path for Financial Analyst

Reading list

We've selected two books that we think will supplement your learning. Use these to develop background knowledge, enrich your coursework, and gain a deeper understanding of the topics covered in Low Cost Business Models.
Lean Startup: How Today's Entrepreneurs Use...
Save
Introduces the lean startup methodology, which emphasizes rapid experimentation and customer feedback. It provides a framework for building and validating low-cost business models quickly and efficiently. The book's focus on minimizing waste and maximizing learning is particularly relevant for entrepreneurs seeking to create innovative and cost-effective solutions. It valuable resource for anyone looking to build a successful startup with limited resources.
The Lean Startup: How Today's Entrepreneurs Use...
Hardcover
$$
The Lean Startup: How Today's Entrepreneurs Use...
Kindle Edition
$$
Cover image
Blue Ocean Strategy
Save
Directly relates to a section of the course, offering a detailed methodology for creating new market spaces. It provides tools and frameworks for identifying opportunities to offer differentiated value at a lower cost. The book's emphasis on value innovation aligns perfectly with the principles of low-cost business models. It practical guide for developing strategies that disrupt existing markets and create new demand.
Blue Ocean Strategy, Expanded Edition: How to...
Hardcover
$$
Blue Ocean Strategy + Beyond Disruption Collection...
Hardcover
$$
(Español) La estrategia del océano azul: Crear nuevos...
Paperback
$$
The W. Chan Kim and Renée Mauborgne Blue Ocean...
Kindle Edition
$$
Blue Ocean Strategy with Harvard Business Review...
Kindle Edition
$$
Blue Ocean Strategy with Harvard Business Review...
Kindle Edition
$$
Blue Ocean Strategy with Harvard Business Review...
Kindle Edition
$$
Estrategia do Oceano Azul - Blue Ocean Strategy (Em...
Paperback
$$$

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Rating
4.5 Filled star Filled star Filled star Filled star Half star
Effort
2 total hours
Via
Udemy
Instructor
Asen Gyczew
Language
English
Traffic lights
Read about what's good
what should give you pause
and possible dealbreakers
Provides a practical, step-by-step guide with tricks, hints, and examples, making it highly beneficial for entrepreneurs seeking actionable strategies
Includes Excel files, presentations, and materials that can be adapted for use in various projects, offering a valuable resource library for business analysts
Explores the Blue Ocean Strategy, which is a generalized approach to business innovation that can help learners produce new business models in old industries
Examines the 'first principles' method, popularized by Elon Musk, to help learners find better and more optimal solutions for business challenges
Focuses on case studies and examples, which may not suit learners who prefer a theoretical or academic approach to understanding business models
Requires learners to have access to Excel, which may pose a barrier for some students without access to or familiarity with the software
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