How Do Customer Relationships Give Companies A Competitive Edge?

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1. How do customer relationships give companies a competitive edge? (20%)
Losing a customer means a lot more than losing a sale, it means losing the entire future stream of purchases that the customer would make over a lifetime of patronage. There are a number of reasons why a customer may stop buying from a company; very often though that reason is linked to poor customer service as opposed to something inherently wrong with the brand itself. Customer relationships give companies a competitive edge based on the merit that if consumers are happy more often than not those consumers will continue to do business with said company. A recent study conducted by TD Canada’s customer loyalty poll asked consumers which form of appreciation are
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(20%)
The business portfolio analysis uses quantified performance measures and market growth to analyze a firm’s strategic business units as though they were a collection of separate investments. The BCG advises clients to locate the position of each of its SBUs on a growth share matrix. The vertical axis is the market growth rate, which is the annual rate of growth of the specific market or industry in which a given SBU is competing. The horizontal axis is the relative market share, defined as the sales of the SBU divided by the sales of the largest firm in the industry. Each of the quadrants are given a specific name and description based on the amount of cash they generate. Cash cows; are SBUs that typically generate large amounts of cash, far more than they can invest profitability in their own product line. They have a dominant share of slow-growth market and provide cash to pay large amounts of company overhead and to invest in other SBUs. Stars; are SBUs with a high share of high-growth markets that mat need extra cash to finance their own rapid future growth. When their growth slows, they are likely to become cash cows. Question marks or problem children; are SBUs with a low share of high growth markets. They require large injections of cash just to maintain their
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