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.
B.
Resources: Reduce resources required for the use of the product
1.
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
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. |
<< Return to Use Steps