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.

Use fixed cost ICDs with more customers

By using fixed cost ICDs with more customer volume, the unit cost of the ICD declines as a component of the final Output cost.

Combine fixed cost ICDs with competitors into a separate business. Combine ICDs from the major cost functions of the company:
Combine Make ICDs

No. Industry SIC Year Notes
1 3312 2004 Posco has invested $800 million in 14 Chinese joint ventures. By 2006 the company plans some $1.4 billion in fresh investment in China, especially in galvanized and stainless steel to supply global auto and appliance makers that have opened plants there.
2 3537 1998 Linde and Jungheinrich produce low-cost engines jointly in the Czech Republic.
3 3651 2004 Samsung Electronics and Sony Corp. have united to build a factory that will produce LCD-TVs. Caught behind in flat-screen TV technology, Sony last year turned to Samsung for help, agreeing to pay half the cost of a $2 billion factory Samsung was already building in Korea. The companies formed a 50-50 joint venture, dubbed S-LCD Corp., that will share the factory's output of 40- and 46-inch LCD panels for use in flat-screen TVs. With the venture, Sony is guaranteed a supply of LCD panels it doesn't have the ability to make on its own. Samsung is guaranteed a big, well-known partner that will help it promote LCD technology in TVs.
4 3651 2008 Sony and Sharp are partnering up in the flat-panel TV business, with Sony investing in a Sharp plant to make LCDs. The move will benefit both companies. Sony will have more of an option in buying panels for its Bravia line of TVs, while Sharp can reduce the investment burden for panel production.
5 3674 1989 7 leading computer and semiconductor companies announced a consortium to produce memory chips.
6 3674 2005 Broadcom's biggest rivals have a similar wireless obsession, and this is shaping one of the most ferocious fights in the history of chip industry. Texas Instruments and Qualcomm, dominate the cell phone market and are protected by a formidable array of patents. Sony, IBM, and Toshiba have banded together to make a groundbreaking chip known as Cell. Intel vows to expand its wireless wares.
7 3711 2008 BMW and Daimler's Mercedes-Benz division are in talks to explore teaming up developing, producing, and purchasing car components. Other rival companies that have parent companies, such as Audi of Volkswagen, Ford Motor's Volvo, and Lexus of Toyota, are abtents. Sony, IBM, and Toshiba have banded together to make a groundbreaking chip known as Cell. Intel vows to expand its wireless wares.
8 4213 1996 Regional LTL carriers positioned themselves to take on the nationals on multiple fronts. NE Motor Freight and AAA Cooper forged a partnership to provide two and three day transit between the northeast and southeast.
9 4911 1996 CSW'S Central Power & Light proposed that all ERCOT non-nuclear utilities become part of a competitive wholesale bulk power pool run by an independent system operator.
10 4911 2006 In an effort to compete against big players in the nuclear-power industry, General Electric and Hitachi agreed to combine their nuclear power business which uses boiling-water reactors. GE will have a 60% stake in the venture while Hitachi will have the rest. The move comes at a time of significant industry consolidation. Reactor makers need partners to share the costs and the risks associated with gaining regulatory approval.
11 5541 1996 In February, Mobil and British Petroleum agreed to combine their $20 billion European fuels and lubricants operations to cut costs.

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