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.

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

No. SIC Year Note
1 100 1987 Seeds of Tomorrow claims it has an affordable hybrid cotton. One variety matures 2-3 weeks faster than regular plants. Farmers pay more for the seeds, but save on irrigation & pesticide costs.
2 2411 1999 Technology advances have made it easier to streamline costs while keeping up production in the timber industry. Weyerhaeuser Co. is among many in the industry that have been equipped with computerized log cutters that require only a small group of workers to oversee.
3 3714 2002 Johnson Controls shifted its focus from assembling automobile seats to providing automakers with integrated interior modules and complete cockpits. Thus, the company has moved from simply manufacturing a high-quality product to addressing automakers' higher-order needs: reducing the risk and complexity of vehicle design and improving the efficiency of vehicle assembly.
4 4512 2004 Pogo, a proposed air taxi service, is looking to use the new A700 jets. They weigh 4,000 pounds and are durable and simple. They consume about 400 pounds of fuel per hour, a third less than competitors.
5 5812 2003 Starbucks will be releasing a Visa card that features a reloadable stored value Starbucks cards and works like a debit card. Each time the card is used the customer amasses rebates that can be spent at outlets in North America. Starbucks can thus pick up sales as consumers earn rewards to spend at the stores. 11 million cards have been activated since 2001 and 11% of store transactions are through the card.
6 7291 2005 The US government has convinced software manufacturer Intuit to join their Free File program which offers tax-preparation software free to those who file on line. New versions of QuickBooks have been widely adopted and despite the small margin shaved off by Free File, people continue to buy the TurboTax program and programs adapted for state taxes. Often, the Free File users are younger, with less complicated tax situations, as their circumstances change, new markets could be opened up.
7 8062 2002 Tenet hospital saves money by creating a system that makes sure all the needed insurance data is collected from patients upfront, so there's a reduced chance that insurers won't pay Tenet's bills.

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