It has been stated that companies do not have profitable products, only profitable customers. Many companies have placed emphasis on the concept of customer account profitability (CAP) analysis in order to increase their earnings and returns to shareholders. Much of the theory of CAP draws from the view that the main strategic thrust operated by many companies is to encourage the development and sale of new products to existing customers.
Critically appraise the value of CAP analysis as a means of increasing earnings per share and returns to shareholders.
This question was answered on: Jul 11, 2017
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