Final Customer Purchasing from the Product Producer

Acquire Steps: Acquire steps include all activities the customer completes preceding the use or the consumption of the product. These steps include the customer's efforts needed for evaluation and acquisition of the product.

Resources: Reduce resources required for the use of the product

Money – Reduce the money the customer uses with the product. For more ideas on using pricing, please see the Improve/Pricing section of StrategyStreet.

A. Reduce the level of payment for use of the product

Reduce performance benefits

Reduce reliability

No. Year SIC Note
1 2004 3143 Red Wing is reorganizing its production system in an effort to squeeze out more savings. The company accepts the fact that its profitability suffers somewhat because it manufactures shoes in the U.S. The company imports shoes from China that it sells under other brand names including the company's Worx line. They also import a small portion of the leather uppers from China that are used in Red Wings.
2 2001 3571 IBM makes sure resold computers aren't obsolete by upgrading them with the latest chip and other technology. The refurbished items also sell at a discount. Prices vary by model, age and power, but they can be 15% to 20% or more below the price of a new machine.
3 2003 3711 U.S. automakers are already at a disadvantage in appealing to consumers, having been forced to increase their incentives to 15 percent of sales prices in 2002, twice as high as those offered by foreign competitors. The U.S. market share of the Big Three has slipped over this period as well, by a combined 1.5 percent a year. The need to offer increasingly large incentives to offset the lower resale value of U.S. cars reflects perceived problems with their long-term quality and durability.

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