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.

B. Reduce the customer’s spending on people, purchases or capital costs the customer uses with the product itself

Capital costs

Reduce fixed capital investment

No. Year SIC Note
1 2001 2111 Brown & Williamson Tobacco Corp, is making cigarettes that are sold under the label of upstart tobacco companies.
2 2003 3325 In the U.S., there are too many steel mills and in other countries, China in particular, there aren't enough. The solution is that deconstructed U.S. steel mills are being sold and shipped abroad to be rebuilt elsewhere. Brand-new steel mills constructed from scratch are still springing up around the world, but economies of time and money are fueling the used-mill trade: For a buyer, the process is quicker and cheaper than building a new mill. Completion takes three years, at most-about half the time it would take to design, plan and build a steel mill from scratch.
3 2003 3571 IT departments got the idea of replacing big servers bought from brand name Silicon Valley firms with cheaper versions from Dell, HP and IBM. E*Trade buyers yanked 50 Unix servers that cost $220,000 a piece and brought in gaggle of $4,000 IBM servers.
4 2001 3572 Because of a slowdown in tech spending, several makers of storage systems are introducing and updating their midrange products. Each of these products is used in divisional and departmental-sized business units. IBM Corp. introduced several new midrange storage products and increased capacity of existing systems. The company increased the number of Unix operating systems that can run on its Fast400 storage server and added fiber-channel connectors that transfer data quickly.
5 2003 3577 Chartered Semiconductor Manufacturing, which had been No.3 in the industry, signed a deal to send its customers who needed the most advanced manufacturing technology to IBM. Chartered said the agreement would let it defer building its own $3 billion lab. Some analysts say that IBM surpassed Chartered's foundry volume last year to become No.3.
6 2002 3711 DaimlerChrysler is inviting suppliers inside the factory as equity partners. The suppliers would run large sections of the factory such as the body shop. The suppliers are supposed to supply as much as 60% of the capital to build the plant. The project allows Chrysler to dramatically cut its fixed costs while freeing up more cash to invest in new vehicles that it hopes will boost market shares. It should also help the company reduce its labor costs as similar projects shrink their direct work force.
7 2000 4512 SkyWest's services will remain popular in the airline industry (even if it keeps consolidating) since the use of contract carriers for short flights cuts costs.

<< Return to Acquire Steps