Friday, December 21, 2012

Diverse group of customers

Companies that sell to a diverse group of customers face fewer problems than companies that sell to a more restricted range of customers. For instance, 99 Cents Only, a company that went private recently, caters to lower-income consumers. When oil prices soared in 2008, it ran into problems because the budgets of its customers were constrained. As another example, a company with sales that depend on a government budget item faces huge problems when that budget item is reduced or cut.

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