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John Gaffney | October 10, 2006

Old School Profit Taking

Customer-centric strategy will grow a company's bottom line, but maybe not as fast as Wall Street wants it to. I see a clear dichotomy developing in profit taking. The old school thinking says develop customer leverage, not customer centricity. Go no further than the gas station for examples. Anybody thinking about the customer as an asset at ExxonMobil? New school thinking says a company needs to develop new products and profit opportunities that grow organically. The ideas are formed with the long-term customer experience in mind. Say what you want about the facist tendencies of Google, but they grow with customers at the center. Same thing goes for Microsoft, UPS, Apple, GE and Nissan, among others. The only factor working against new school profits is the old school "seize the quarter" attitude that Wall Street analysts continue to pressure businesses with.

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