Cost structure
The description and characteristics related to the costs involved in this business model.
Our model has certain characteristics that need to be mentioned and described in order to better understand our strategy.
Value Driven
Our main focus is in the creation of value. We use the best ingredients, work with the best people, therefore we aim to position our products as premium. This means that some of our costs are high, nevertheless our business model gets benefited from the economies of scope described below and eventually our model will get the benefits that come with the economies of scale that will reduce some of our costs as our operations grow.
Profit maximization while developing the local market
Our combined model increases the profit from each drop of spirit produced while lowering variable costs in our controlled experiences. This way we can strategically earn more profit while controlling how our brands are discovered and enjoyed. This is a cornerstone in order to efficiently develop a market for the Bolivian whisky category in Bolivia.
Economy of Scope
Our business model takes advantage of certain costs that are shared among the different business units that are described in our revenue streams section. In other words, we will build a team that will drive multiple revenue streams instead.
Structure overview
The table below visually summarizes the cost structure related to our business model. The detailed information is found in our financial plan.
Andean Culture Distillery®
The Authentic Underground Spirit
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