THE INFLUENCE OF COST STRUCTURES ON BUSINESS MODELS
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ABSTRACT
THE INFLUENCE OF COST STRUCTURES ON BUSINESS MODELS
This research explores the influence of cost structures on business models, focusing on: (1) the relationship between cost structures and business model viability; (2) the impact of cost structures on competitive positioning; (3) the challenges in adapting cost structures to changing market conditions. A survey design is used to collect quantitative data. Taro Yamane's formula is applied to derive a sample size of 300 respondents from Ogun, representing a mix of startups and established businesses. A technology firm is chosen as the case study due to the dynamic nature of its cost structures and business model innovation. The reliability coefficient score for the survey instrument is 0.87. Findings show that adaptable and efficient cost structures are essential for sustaining business models and achieving competitive advantage. However, challenges include the need for continuous cost structure evaluation and adaptation to market changes. It is recommended that businesses develop flexible cost structures, regularly assess their cost models, and adopt innovative practices to remain competitive and responsive to market demands.
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