Increase the Output Over Which a Fixed Cost ICD is Used

This action reduces the quantity of a unique fixed cost ICD used to produce a unit of Output by increasing the units of Output. For example, a new product design, or a new process patent, are both ICDs that have virtually limitless capacity for use. These are fixed cost ICDs. You pay for them once and you can use them over a virtually unlimited amount of Output. Their ICD/O ratios are limited only by the current demand level for Output.

Acquire similar organization to spread fixed cost ICDs

The acquisition of another organization with a similar business enables the company to take certain fixed cost ICDs in the form of processes and designs and use them over a larger amount of Output.

Buy company in complementary market:
Related, product in order to save development costs

No. Industry SIC Year Notes
1 1531 1996 Centex buys two companies: Advanced Protection Systems Inc. and Environmental Safety Systems Inc., will operate under its newly formed Centex Home Services Co. unit.
2 1700 1997 Owens Corning will acquire Fireboard Corp., a vinyl-siding manufacturer, for $515 million, marking the 16th and largest acquisition pact during Owens Corning's 3-year shopping spree.
3 2037 1997 In 1995, Seagram acquired the worldwide juice business of Dole Foods and added it to the Tropicana stable. Seagram's entertainment empire offers Tropicana tie-ins that the juicer is creative enough to pounce on, such as this summer's Lost World promotion.
4 2834 1995 Instead of spending money on research, Medeva buys smaller U.S. and British drug companies.
5 2834 2002 King acquired Alstace for $363 million (four times revenue) in 1998 in order to build a cardiovascular franchise.
6 3021 2004 Nike peaked during the 1997 craze for basketball shoes and has periodically been trying to get skaters to buy its line of shoes to make up ground. It has sponsored skating events and run endless commercials but has still been unable to escape its image. "We were hurt mainly by the fact that we were the No. 1 sports company." Nike has recently bought Hurley International, a rival of Vans. Nike will use the brand to get a piece of the skate market.
7 3571 2003 IBM acquired PricewaterhouseCoopers Consulting last year for $3.5 billion
8 3634 1996 Rival Co., Kansas City, Mo., agreed to acquire Bionaire Inc. of Montreal . Rival makes personal-care and household appliances, and Bionaire makes air purifiers and humidifiers.
9 3825 1996 GenRad Inc. said it has purchased closely held Test Technology Associates Inc. gaining entry into the service side of the circuit-board testing business, at estimated price of $4 to $6 million.
10 3949 1986 Trak is nearing a merger with Olin Ski, to combine distribution and sales.
11 3995 1999 The business strategy of Matthews is to link memorialization and cremation together. It has done this through acquisitions and overseas expansion.
12 4899 1997 Cisco spreading further into ATM and other areas – trying to become a one-stop networking resource. Cisco has entered new markets by acquiring small, leading edge companies.
13 5211 1998 Early 1997, Home Depot bought Maintenance Warehouse America, a private company that was the nation's top direct-mail marketer of maintenance and repair products to lodging and multifamily-lodging managers.
14 7372 2004 To stay competitive, companies are finding new ways to automate operations, reuse technology, and streamline processes. Accenture and IBM are creating precooked packages of software and services for various industries, so less customization has to be done for individual clients.
15 8082 1997 MATR has restructured NRMC's operating model to take better advantage of its complementary fit with MATR's business. Both businesses' services are provided in cooperation with obstetricians.

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