Final Customer Purchasing from the Product Producer

Use Steps: Use steps include all the customer's value added activities or the consumption of the product itself. These steps include all the costs the customer incurs in employing the product in its intended use.

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 both Function and Convenience benefits

Produce inexpensive products with little known brand name

No. SIC Year Note
1 3663 2000 Konka has gained 1% of the U.S. market by selling basic TVs with 13" and 19" screens at cut rate prices to Mom and Pop dealers. Konka hopes to build on that by introducing bigger screen models later this year and landing a deal with a national retail chain.
2 4512 2000 Ryanair has successfully become a rapidly growing budget airline by following the model set by Southwest Airlines. Ryanair has cut costs down as far as possible; drinks have to be bought on board, peanuts are not served at all.
3 7375 1999 Bloomberg and some of the other leaders are some what isolated from the low end competitors because much of the information they provide is very technical. The upstart's service is neither as comprehensive nor as fast.
4 8111 2003 We the People do-it-your-self legal business. The law establishment in attack mode against document companies like We the People. These firms don't offer legal advice but instead they take information from customers and fill out legal forms on their behalf.

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