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.

Use fixed-cost ICDs with new customer segments. Sell ICDs in major cost functions of the company:
Sell Sell ICDs

No. Industry SIC Year Notes
1 2095 1990 Because Farmer has a truck anyway, it also packages and sells some 200 restaurant items, from spices to Styrofoam cups. Operating margins overall double major competitors such as Rykoff-Sexton and Sara Lee.
2 2399 2004 Levi Strauss, once an iconic brand for youth worldwide, the struggling company is seeking to reverse a long slide by going down market. Launched last July in Wal-Mart Stores Inc., Levi's Signature line of jeans for men, women, and teens, is priced at only $10 to $23 a pair. That is as little as half the price of the familiar 505 and 501 pants that are part of Levi's core Red Tab line. Levi Strauss has since rolled out Signature in Target Corp.'s 1,400 discount stores as well.
3 2834 2006 Pfizer Inc. is planning to introduce a heavily discounted generic version of the antidepressant Zoloft after the brand-name drug loses domestic patent protection. Johnson & Johnson is testing Pfizer's approach with a few products through a subsidiary called Patriot Pharmaceuticals. Schering-Plough Corp.'s Warrick generics subsidiary does the same for a broader line of company has-beens. It's not a very profitable business, but the companies say it helps them soak up some manufacturing overhead.
4 3674 1998 In order to maintain short design cycles, fabless firms must extensively reuse design data porting: designs from one product to another or contracting with another firm for all or some part of the design.
5 5411 1989 Some large chains get as much as $1 million a year just for selling their data from scanners.
6 5411 2006 Wal-Mart's largest non-American operation, Asda, has been struggling recently as its top local rival, Tesco PLC, is thriving. Asda believes Tesco's Clubcard databases have little to do with its success. Instead, Asda says it fell behind because it failed to reach out to higher-end shoppers with products such as better produce and gourmet ready-to-eat meals. It also lost its crown as the low-price leader. Recently, Asda has upgraded its foods, and in a shift from Wal-Mart's supercenter strategy, opened small discount stores like those Tesco operates.
7 5621 2008 Warnaco, a design and marketing company for clothing and accessories, is signing for more new and long-term licenses for Calvin Klein properties. Warnaco already has experience selling Calvin Klein jeans and accessories overseas. With the agreements, Warnaco will push into more of the CK retail business, which is highly profitable.
8 5731 2004 In its three decades in downtown Manhattan, J&R had managed to build a strong reputation around having knowledgeable sales staff, a broad selection and low prices. J&R is a traditional, high maintenance Manhattan store with limited national reach and high overhead that recently started selling on the internet. Despite what people expected, it has thrived and the web has helped J&R extend its reach beyond New York, reaching a national audience and dramatically boosting its growth. Web sales for J&R have increased 25% a year for the past few years, experiencing additional growth through customers who "preshop" online and then go to the physical store to complete the purchase.
9 6211 1996 In 1996, Schwab established a separate online unit E.Schwab with its own staff offices and sense of mission. E.Schwab charged $29.95 per trade while Schwab's traditional brokerage customers had to pay an average of $65 per trade.
10 6211 2000 DLJ Direct is considering putting locations inside Barnes and Noble stores.
11 7011 2005 Marriott and to a lesser extent Hilton tend to franchise more than own and operate their own hotels. That helps keep revenue-in the form of franchise fees-coming in during downturns.
12 7300 1999 During the late 90s, several computer service firms were selling information about their customers in order to offset some of their costs
13 8011 1997 MedPartners brings with it urban physician groups and a portfolio of other businesses: prison healthcare, pharmacy benefit management, disease management, and domestic and international home healthcare.

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