Reduce Price to Improve Revenues and Margins

CHOICE 1 OBJECTIVE: ATTRACT CUSTOMERS

CHOICE 2 SEGMENTS: PRODUCT SYSTEM COMPONENT SEGMENT / DISPOSAL COSTS

CHOICE 3 COMPONENT: OFFER A TRADE-IN ALLOWANCE

No. SIC Year Notes
1 7841 2005 The transformation of Blockbuster into a home-entertainment store is well underway. Whereas once about 80% of an average store was dedicated to rentals, now its closer to 65%. Blockbuster will give you between $5 and $10 in store credit for your unwanted DVDs and then resell them for $10 to $15. Trading is an area where giants like Wal-Mart don't play. Blockbuster is also focusing on its videogames, 15% of its revenue.
2 1542 1992 New "Class A" buildings have made aggressive concessions including free rent, assumption of unexpired leases.
3 1521 1990 Kaufman offering to buy the home or condo of anyone who wants to trade up to a Kaufman & Broad home. CEO figures that with its mortgage finance unit, it's cheaper to hold on to someone else's smaller home than to sit on one of his.

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