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In the new world of manufacturing, the sturdiest barrier to competition is customer allegiance.
Another factor in customer allegiance is SAS's devotion to creating bug-free products.
By controlling the standard for flight management, Honeywell has gained an important link with airlines and has wrested valuable customer allegiance from Boeing and the other plane builders.
By altering the economics of distribution, making comparison shopping easier, and shifting customer allegiance to the intermediary, the Internet puts new pressure on manufacturers and their traditional channels.
To capture value downstream, manufacturers need to expand their definition of the value chain, shift their focus from operational excellence to customer allegiance, and rethink the meaning of vertical integration.
Nokia's integrated-solution business model has enabled it to create tremendous customer allegiance, capture a large share of customers' high-margin network-infrastructure spending, and earn recurring service and upgrade revenues.
Similar(51)
Delivering a great product is not enough to gain a customer's allegiance.
Yet, if even a small percentage of customers switched their allegiance from animals to vats, the market would be huge.
The implication is that Uber customers switched their allegiance in light of Uber's scandals.
Lakdim hijacked a car, gunning down a passenger, then stormed a busy supermarket in the town of Trèbes near Carcassonne, killing a member of staff and a customer and declaring his allegiance to Islamic State.
Once, the old store was the only game in town for young fashion followers influenced by music and night life, but the new store must compete for the allegiance of customers who have been weaned on spandex leopard print and in-store D.J.'s.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com