Week 3 - Weekly paper

Hafidh Aulia Muhammad (MMBM 47- 15122310006)

Choosing the Right Customer is the main objective is to guide organizations in identifying and
focusing on the most valuable customers, ensuring long-term success and profitability. By adopting
this framework, companies can align their resources and efforts towards serving the right customers
and maximizing the value they create.

First identify the best primary customer is a crucial aspect of the framework. Not all customers
contribute equally to a company's bottom line, and focusing on those who generate higher profits
can significantly impact financial performance. By analysing customer profitability metrics,
companies can allocate their resources more effectively and prioritize efforts towards maximizing
value from their most profitable relationships.

The second dimension, fit with capabilities, encourages companies to assess how well their strengths
and competencies align with customer needs. By targeting customers whose demands align well with
what the company can deliver, organizations can provide superior value and enhance customer
satisfaction. Five basic arrangement you can choose from are low price, local value creation, global
standard of excellence, dedicated service relationship, and expert knowledge.

The third, the framework encourages companies to evaluate the long-term potential of customers.
This involves considering factors such as growth prospects, customer lifetime value, and the potential
for expanding the relationship over time. By prioritizing customers with significant long-term
potential, organizations can build sustainable and mutually beneficial partnerships.

Choosing the right customer is crucial for companies aiming to achieve long-term success and
profitability. Robert Simons' framework provides a structured approach to developing customer-
centric strategies. By evaluating customers based on profitability, fit with capabilities, and long-term
potential, businesses can effectively allocate resources, deliver superior value, and build sustainable
relationships.

The conclusion implementing this framework requires companies to prioritize customers who
generate higher profits, have needs that align well with the company's capabilities, and demonstrate
substantial long-term potential. By adopting a customer-centric mindset and aligning strategies
accordingly, organizations can enhance their competitive advantage, improve customer satisfaction,
and drive business growth.
Overall, choosing the right customer is not only about acquiring customers but also about
strategically identifying and nurturing relationships with those who can contribute the most value to
the company in the long run.