Increase the Output Over Which a Fixed Cost ICD is Used

This action reduces the quantity of a unique fixed cost ICD used to produce a unit of Output by increasing the units of Output. For example, a new product design, or a new process patent, are both ICDs that have virtually limitless capacity for use. These are fixed cost ICDs. You pay for them once and you can use them over a virtually unlimited amount of Output. Their ICD/O ratios are limited only by the current demand level for Output.

B.
Use fixed cost ICDs with more customers
By using fixed cost ICDs with more customer volume, the unit cost of the ICD declines as a component of the final Output cost.

Use fixed-cost ICDs with new customer segments. Sell ICDs in major cost functions of the company:
Sell Locate ICDs

No.	Industry SIC	Year	Notes
1	4812	2004	#1 cable firm Comcast has signed a marketing deal with wireless carrier T-Mobile USA, which provides Wi-Fi wireless Internet services at 4,000 locations. This partnership could be extended to include regular wireless services. PCS has agreed to provide Time Warner with wholesale services. Sprint also has sold wholesale capacity to 10 other affiliates.
2	4812	2006	Verizon and other U.S. cellphone companies are now betting they can make more money by allowing consumers to buy mobile content outside of their branded portals, although they'll get a smaller slice of revenue. Cingular Wireless started allowing third-party providers to sell to its customers two years ago, a move that has helped increase its mobile-content market share to an industry-leading 46%. T-Mobile USA Inc. allowed third-party content providers to sell its customers starting in late 2004, and Sprint Nextel Corp. followed last year.
3	4812	2007	While consumers reject the idea of ads on their cell phones, some providers are overcoming this barrier by offering free voice minutes and content to subscribers who interact with ads. Virgin Mobile users can earn minutes for the time they spend viewing interactive commercials on the Virgin website. Subscribers are more likely to click through ads. Mobile advertising may work if it is done on an opt-in basis and consumers see the real benefits of exposure to advertising, such as lower bills and access to games and services.
4	4813	2004	Two Bells, the BellSouth Corp. of Atlanta and SBC Communications Inc. of San Antonio have marketing alliances with services that allow customers to download movies over DSL lines. BellSouth is in talks with Time Warner Inc.'s CNN to set up an online video-news archive. Three of the Bells, BellSouth, SBC and Verizon Communications Inc. are running high capacity fiber optic lines close to consumer's homes which could eventually allow them to offer hundreds of video channels as well as phone and Internet services over the same line, effectively turning them into state of the art cable companies.
5	4813	2004	The bells are trying to do all they can with their copper networks by featuring such services as MovieLink.com. The web-based service provided by an alliance with Hollywood studios allows customers to download movies to their computers via a DSL equipped phone line.
6	4813	2004	Phone companies are trying to cut costs to say ahead of declines in revenue. The Bells are trying to add new kinds of revenue by teaming up with satellite television companies, offering packages of phone, broadband and TV service. But their basic business still is selling a high-priced commodity in a market that is now highly competitive. The Web has completely transformed the industry. For one, it has made outsourcing easier. "Anyone who wants to go into the phone business can do it."
7	4833	2000	Cable-TV operators are starting to roll out a service called "video on demand," which uses the industry's new high-speed digital networks to provide old and new movies anytime customers want them.
8	4841	2004	Several major phone companies such as Verizon and SBC have announced multibillion-dollar projects to offer video service to their customers via fiber optic cables they intend to string directly into homes.
9	4841	2004	About 40% of cable's digital customer base also subscribes to its Internet services. Cable's bundling of services such as TV, Internet, phone and video on demand will keep the industry competitive with satellite. Satellite was late to the bundling game which has hurt them, although the are responding. DirecTV and EchoStar have teamed up with Verizon Communications and SBC Communications to offer bundled services.
10	4841	2004	The British satellite company BSkyB employs interactive TV mostly as viewing enhancement rather than as a sales tool. The company has experimented with interactive advertising, letting viewers order brochures for products they see on screen. The company has invested two billion pounds over five years to upgrade its customers to interactive capable set top boxes. Today the company has operating profits of 190 million pounds.
11	5311	2002	Amazon has cooked up imaginative ways to cut shipping fees by consolidating orders. And it has a lucrative new business selling new and used goods online on behalf of other merchants.
12	5411	2006	Even though Kroger has been successful competing in markets that Wal-Mart has invaded, some analysts question whether it can withstand the retail giant. Kroger is moving beyond a focus on prices to improving services, such as speeding checkout lines and selling a broader range of merchandise, including furniture, electronics, clothes, and toys. It's also gradually expanding its Fred Meyer chain in the Northwest and Marketplace stores in the Southwest.
13	5411	2006	Wal-Mart has recently opened medical clinics in supercenters across the country. The mix of transparent prices, electronic efficiency (patients can access test results online using a password), and convenient hours looks, for now at least, like a winning formula. Wal-Mart sees the clinics potentially as a big deal for two reasons: They boost its appeal as a one-stop place to shop by giving customers a much-needed service, and they help fulfill its self-proclaimed mission to be “a champion for working families.” It now offers those services in more than 3,000 stores and figures it's saving workers and customers $4 million a week.
14	5942	2004	Mr. Van Uum's "Joseph-Beth" Booksellers in Cleveland is bigger than the Borders, sells merchandise ranging from toys to quilted handbags and boasts a restaurant where flank steak salad goes for $9.95. The six stores owned by Joseph-Beth average 30,000 square feet or 5,000 feet more than a typical Barnes & Noble.
15	5961	1997	As a complement to its core office supplies and office furniture business, OFIS markets coffee/vending services, school supplies, computer services, forms management, and corporate travel services, and is exploring other product line extensions.
16	7832	2003	Regal Entertainment Group, the largest movie-theater owner in the nation, has since Jan. 31 tested a 20-minute "preshow" of sorts that wraps 13 minutes of content–music videos or a funny promotion for Jay Leno's "Tonight Show," for example–from Hollywood experts like AOL Timer Warner Inc's TBS, General Electric Co.'s NBC and Vivendi Universal SA around seven minutes of commercials from marketers such as Colgate Palmolive Co., Coca-Cola Co. and Cingular Wireless, the Joint-venture of SBC Communications Inc. and BellSouth Corp. "All these companies are coming out of bankruptcy, so they have brought in some very aggressive, forward-thinking people," says a senior vice-president of our out-of-home media for Grey Global Group Inc.'s MediaCom media-services operations.
17	7832	2007	National CineMedia is working to fill empty theaters during the week. Corporations and religious groups can rent theaters for meetings and theaters can broadcast sporting events and concerts to draw crowds.

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