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.

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. SIC Year Note
1 3571 2000 The NIC is somewhere between Netpliance Inc.'s I-opener which sells its hardware and then asks the customer to sign up for their Internet service for a year or more and the PC at the other end.
2 3571 2003 These are tough times for server makers as corporate tech spending remains ho-hum and there's a sense that servers have become a commodity. The fastest growing segment of the market is blade severs–super-thin, modular computers that fit in tight spaces.
3 3571 2001 IBM said it would invest about $4 billion to build 50 computer-server farms around the world. With this move, the company is betting that users eventually will be able to buy computing power from a grid instead of owning large computers.
4 3576 2002 Home sales of Wi-Fi products have risen 20%. Families like it because its allows more than one computer to be online at once. It just needs one "access point", adding to convenience.
5 3589 2003 Ethicon Endo-Surgery has recently been working on a new device to be used in hospital operating rooms. Instead of installing a backup battery system in the device, it is designed to use the battery backup systems of other operating-room equipment, thus reducing the cost, the complexity, and the size of the new device.
6 3600 2004 None of the Taiwanese LCD companies build finished TV sets, while their rivals in Korea and Japan have in-house customers for TV-size screens. Samsung not only produces television sets itself, but it is also providing them to Sony after the companies joined forces to build an LCD factory.
7 3663 2001 Bluetooth is inferior to its competitor, Wi-Fi for two reasons. Wi-Fi is ten times faster with ten times the range and it costs the same as Bluetooth.
8 3694 1987 Lasa has a new chip-making system that pares the turnaround time for prototype chips to an hour or less. The system is totally automated & doesn't need a clean room because it is self-contained.
9 3731 2000 An unusual new ship that looks like a cross between a yacht and an aircraft carrier should be able to slice through ocean waves twice as quickly as typical container ships, even in the worst storms.
10 7372 1987 Adobe's new Illustrator program ($495) should compete with products costing $100,000 or more, running on much more expensive computers than the Macintosh.

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