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Application Video, The Nespresso Business Model

The final building block focuses on what costs will be incurred as we create and deliver the value propositions to the customer segments. The most common categories of cost are cost-driven and value-driven. Costs can also be described as fixed costs and variable costs. Costs typically should be minimized in every business model but low cost structures are more important to some business models than to others. Think how Wal-Mart's business model is different from that of a luxury hotel.

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