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

Time: Reduce the time the customer must spend with the product

A. Reduce steps the customer must use with the product

Bring products closer to the customer
Serve current customers with new products, saving customer purchase time and increasing your revenues
Add related products the current customer would buy

Add functions used with the main product

No. SIC Year Note
1 3571 2003 Some computer customers like to buy PCs that are bundled with other products. Apple and Sony both packaged consumer gear in with their products. Hewlett-Packard is adding digital cameras, photo printers, and more to its packages.
2 3571 1994 Amdahl plans to take mainframes and combine with hardware and software and sell the package to large corporate customers.
3 3571 2002 Dell has gained market share in personal computers, servers, and storage systems during the downturn. In addition to expanding its customer base, Dell has shown that it can get a larger portion of a customer's tech spending once it's in the door. Because Dell has its operational costs under control, it has the luxury of looking beyond its core business of PCs and low-end servers. It's entered adjacent businesses, including network switches, printers, and handheld computers.
4 3711 2000 Oshkosh's success comes from mass customization. It has an ability to combine moderately high-volume production with options. Firefighters, for example can choose from 19,000 options.
5 3716 2003 RV makers are remodeling the motor homes with home-theater systems, washers/dryers, high speed Net-access, global satellite mapping and more. Customers pay between $100,000 to $500,000. The RVs have cameras that help watch the road and hard-to-see areas while backing up and electronic sensors that keep tabs on everything from engine temperature to tire pressure. Once the vehicle is parked the walls can be expanded to match the size of a small hotel suite.
6 3861 2002 Consumers felt that digital pictures were a hassle to print. Now, about every major photo company is producing photo kiosks that would make it easy to print good photo shots from digital cameras. They even have features such as a photo editing program and can pop out a picture in about 30 seconds. The machines are aimed at winning over people who haven't bought a digital camera because they're unsure how to print the photos.
7 4813 2002 The key to more wireless usage, and thus higher revenue per user, is selling data services via mobile phones. These services include e-mail, entertainment content and short messaging systems.
8 5800 2003 Dunkin' Donuts, a unit of Allied Domecq PLC, is introducing an espresso line of beverages, including cappuccinos and lattes into 5,700 shops. They want expand the market and democratize the drinks formerly thought of as restricted to Starbucks.
9 7011 2003 The Las Vegas 'Hotel' places less emphasis on gambling, and more on hospitality services, equipping suites with plasma-screen televisions, office services including internet access and a wet-bar. The Hotel will also have a pool table, restaurant, club and spa. With these services, within three years, two-thirds of Mandalay Resort Group's revenue will come from hospitality rather than from gambling.
10 7011 2003 Luxury hotels are developing deluxe ski resorts, adding more options to the limited U.S. properties and capitalizing on the resurgence of the ski industry. They offer amenities such as spa treatments, airline packages, and lessons. The first ski resort-based Four Seasons hotel opened in Jackson Hole, Wyoming which offers ski-in/ski-out access to the tallest ski mountain in the nation and a deluxe spa. The premier luxury brand also plans to open resorts in Vail and Canada's Whistler. The Ritz, built with logs to evoke the classic National Park lodges, remains one of the top choices for deep-pocketed skiers, with its own ski lift and full-service ski shop.
11 7372 2002 Intuit is offering more high-end products with QuickBooks. "What we're really doing is selling better solutions to our existing set of customers, as opposed to competing against someone else in the high end. We've been serving large customers for a long time."
12 7379 2002 RealOne streaming-media service offers popular entertainment options in all areas of pop culture, including the All Food Channel, IFilm independent film channel, and an E! Networks channel.
13 7997 2001 Luxury health clubs now offer a range of services from dining to spa services to shopping, in addition to their exercise facilities. The average monthly cost of membership to such clubs is about $145 per month plus up to as much as an extra $300 per month in miscellaneous expenditures.
14 7999 1998 Customers may question why they should spend 70% of the cost of a full ownership on a quarter share condo at American Skiing Company's resorts. The answer is that the condo comes with amenities, a package they can't get any other way: restaurants, spas, gyms, child care, game rooms, locker rooms, access to quarter shares at other resorts.

<< Return to Use Steps