BMC: Cost Structure  What are the most important costs inherent to their business model?

Company: HOME DEPOT

First slide:

BMC: Cost Structure

What are the most important costs inherent to their business model?

Which key resources are the most expensive?

Which key activities are the most expensive?

Example Cost Considerations

  • Fixed costs (salaries, rent, utilities)
  • Variable costs (cost of goods)
  • Economies of scale
  • Economies of scope

Second slide

BMC: Channels

Through which channels do their customer segments want to be reached?

How are they reaching them now?

How are their channels integrated?

Which channels work best?

Which channels are most cost-efficient?

How are they integrating these channels with customer routines?

Channel Phases

  1. Awareness – How can they raise awareness about the company’s products and/or services?
  2. Evaluation – How can they help customers evaluate the company’s value proposition?
  3. Purchase – How do they allow customers to purchase specific products and/or services
  4. Delivery – How do they deliver their value proposition?
  5. After sales – How do they provide post-purchase customer support?

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