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.
C. Reduce the customer’s spending on other products used with the product
Warnings and advice
|1||1994||2840||Johnson is powered by heavy advertising. Consumers buy these kinds of products only a few times a year, so they're not highly sensitive to price competition. Johnson acquired Drackett Co. and now has a larger and different competitive set.|
|2||1987||3571||Analysts say Digital can price higher than General Corp because Digital already has many customers using VAX computers, and they are willing to pay extra for faster VAX s rather than rewriting software to run on lower-priced machines.|
|3||2001||3571||Sun faces a dilemma. Unlike the PC makers it designs its own microprocessor and operating system software. That bill comes to more than $500 million a year. Those expenditures are essential since they allow Sun to offer a more powerful alternative to Windows. But if Windows servers match Sun's capabilities and eat into Sun's market share, they will not be able to maintain their margins and make the investments in software to keep up with the company.|
|4||2002||3652||When a revolution catches on very quickly, or has been spotted too late to be contained, shaped, or absorbed, industry leaders must act more aggressively to neutralize it. Industry leaders often quash a new product or business model through legal action.|
|5||1994||4512||By charging 25% to 33% less than established carriers along CA routes, Southwest's market share has soared from 4% in 1987 to 47% today.|
|6||2003||4512||When companies make strategic actions that cause huge consequences to the market, the catalyst does not have to be technology. Southwest Airlines, for example, introduced cheap, no-frill airfare and it changed the consumers and the industry forever.|
|7||2004||6141||Cardholders have abandoned Diners Club in droves in the past decade as the number of merchants who accepted the card declined.|
|8||2002||7372||One analyst observes that as security software industry consolidates like most of the other industries, the company with the broader product strategy usually wins.|
|9||2003||7514||Most small businesses don't usually partner with one rental-car company, though large corporations often do. Small businesses usually search for the lowest rates.|
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