Manage the Cost Structure to Reduce Unit Costs

Set reasonable targets for your costs and then improve the productivity of each cost function in the business.

What steps should I take?

We have designed StrategyStreet to work in levels. Begin with the most basic level and proceed to more complex levels only as you find the greater detail necessary and helpful. Consider each of the steps below for your situation and then use only those that offer you immediate help.
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Step 1. Watch the Three Videos in the Overview of Costs Series

These videos describe how to look at costs in your market, what to expect as your market matures and what to do about these developments.

Step 2. Answer the Cost Questions in Board of Directors

Review the Cost questions, Questions 9-10, in the
Board of Directors section of StrategyStreet. Determine whether you can answer them to your satisfaction.

If you would like to pursue these questions in more detail, go to Step 3. If you feel you have a good understanding of your market and simply wish to develop new ideas, skip to Step 4.

Step 3. Complete Activity Four: Steps 24 to 30 in the Basic Strategy Guide

Each step outlines a specific analysis for you to do. It shows you what the completed analysis looks like, and tells you how to do it. Each step explains why the analysis is important, advises you on what to expect to see, and then recommends an action or decision you might take at the completion of the step.

Step 4. Develop a New Cost Structure

Use the Improve/Costs section of StrategyStreet to develop a more competitive cost structure in each cost function of your business.

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