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

Substitute lower cost benefits for higher cost benefits

Add convenience while reducing function

No. Year SIC Note
1 1985 3571 United Tote makes a portable totalisator–a computerized data-processing system that brought state-of-the-art wagering to small- to medium-size horse tracks, dog tracks, and jai alai frontons in North America.
2 2005 3571 Hewlett-Packard dominates the Intel compatible server market and in order to keep that lead the company has streamlined its production. For low end, low margin, products, HP will mimic Dell by using off the shelf technology and steam lining the supply chain. The company will not be spending a lot of time on value add capability there. For some server setups, HP servers are cheaper than similar machines. To make up the difference, the company will push add-ons such as memory and disk drives which bring higher margins than the bare bones hardware. For high end servers, HP will blend its own research with industry standard parts to offer something unique.
3 2002 7375 EMC traditionally attaches storage boxes directly to individual servers. Network Appliance connects storage boxes to a network so that any server can get data from any storage box.
4 1998 8111 Entire new firms have been founded on the basis of alternative lawyer-client relationships. The founders of Bartlit Beck Herman Palenchar & Scott broke away from Kirkland & Ellis to experiment with riskier fee structures and leaner staffing for litigation. The 35-lawyer boutique often charges a flat monthly rate for handling each case, with a bonus if it wins and a rebate if it loses. The firm saves thousands of dollars a week simply by substituting computers and electronic mail for old-fashioned paperwork and express delivery services.

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