Reduce Price to Improve Revenues and Margins
CHOICE 1 OBJECTIVE: ATTRACT CUSTOMERS
CHOICE 2 SEGMENTS: TARGETED COMPETITOR SEGMENT / STANDARD LEADER PRICE AGAINST ESTABLISHED STANDARD LEADER / AGAINST A SMALLER STANDARD LEADER
CHOICE 3 COMPONENT: CHANGE THE BASIS OF CHARGE
| No. | SIC | Year | Notes |
| 1 | 3571 | 2004 | IBM and Hewlett Packard are working to link low-cost machines together over fast networks to work with movie animation for companies such as DreamWorks. They are offering these machines in a pay-as-you-go model. HP calls the concept a Utility Rendering Service, allowing users to rent out capacity as they need it rather than buying scores of machines that will sit idle for much of the time. More than half of Shrek 2 was rendered by this service, saving DreamWorks millions in hardware, software and maintenance. IBM's On-Demand push is a similar premise and the company hopes to give smaller outfits access to technology they could not afford to buy. |
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