What actions can managers take to reduce fixed costs? Nike, the shoe and apparel company, does no manufacturing and incurs no fixed costs of operating and maintaining manufacturing plants. Instead, it buys its products from various suppliers. As a result, all of Nike’s costs of producing products are variable costs. Nike reduces its risk of loss by Profit Analysis Makes Megabus a Mega-Success describes how Megabus, an intercity bus operator, developed an innovative business model to reduce its fixed costs.