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Harvard Business Review, April 2012
Page 137, Case Study
A supplier contemplates cutting off one of its biggest accounts,
by Robert S. Kaplan
When to Drop an Unprofitable Customer

…"And what about that industry conference last month?" Jane prompted.

"Yes, the conference. In London. Well, lots of talk about Chinese suppliers there. Impressive group, actually. Lots of buzz about them. But our CEO gave the keynote, focusing on the benefits of our relationships with local suppliers. He's passionate about supporting UK businesses, you know, and the press ate it up."

"We so often overlook the intangibles that we get from our loyal customers," Jane said. "The showrooms, too." She picked up a glossy booklet from Steve's desk and handed to Tommy. He flipped through it, glancing at the photos of Westmid's new chain of decorator showrooms at high-end sites around London. She pointed to a picture. "Our doors," she said.

"This is a small part of Westmid's business now," she went on, "but it's bound to grow once the economy picks up. Our products have to be in these showrooms. Am I right?" This time Steve refrained from speaking, because the question was clearly aimed at Tommy.

The only sound in Steve's office was that of Tommy turning the heavy pages. The booklet showed many images of Egan's doors--beautiful, top-of-the-line, thermally insulating products with fan lights and other expensive features. He looked at Jane...

DB, SSN057-86-4042,
April 13, 2012, Friday,
National Central Library,
Taipei City

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