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Outsourcing certain high-cost activities being performed internally to outside vendors or contractors who can perform them more cheaply than they can be performed in-house

Implementing the use of best practices throughout the company, but most particularly for those activities where costs are higher than those of some or many rivals

Implementing an activity-based cost accounting system that identifies high-cost activities and then eliminating those activities with the highest costs from the company’s value chain

Ceasing to perform activities of minimal value to customers

Relocating high-cost activities (such as manufacturing) to geographic areas like Southeast Asia or Latin America or Eastern Europe where they can be performed more cheaply

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