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Discussion 3: Customer Profitability

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Our study this week focuses on customer profitability. Review Exhibit 6-6 in the text (Comprehensive Customer Operating Income Statement). Do you believe this level of detail is effective? Select a company with which that you are familiar. Review Exhibit 6-7. How would you describe that company along the dimensions in the chart (i.e., types of customer, cost to serve and net margin realized). Identify another company in the same industry that fits the description on the other side of the continuum. What are some of the specific challenges of the low-price company? What are some of the specific challenges of the high-price company?

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