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It was an unglamorous, low-growth business, but it had a captive customer in USX and predictable cash flow to service debt.
Some people concerned about nuclear safety say that a buyer is under more pressure to keep a plant running, even if it needs maintenance, than an old-style monopoly utility with a captive customer population.
You could be a captive customer.
And ST never had a captive customer.
Facebook is currently building its rep with major advertisers on its social network – and that's a great start, because that will provide a captive customer base to transition into its search engine right at launch.
The city's location at the east end of the Erie Canal gave it unparalleled access to both raw products and a captive customer base in the west.
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We prefer the hybrid companies that have a portion of their old captive customer base as well as some of the new-economy electric space, typically exemplified by the merchant power generators or the companies with wholesale power trading operations.
While there are usually some compelling cost savings to be had from vertical integration (either through insourcing services or acquiring suppliers/customers), the increased margins typically evaporate over time as the "supplier" gets complacent with a captive, internal "customer".
Wal-Mart, in effect, has co-opted America's rural centers as its own captive customer base.
The Suits bring zillions of dollars in wireless infrastructure, a long operating history, a huge base of captive customers, thousands of roaming agreements and vertical integration of systems, software and services.
Usually, the investment outfit operating a closed-end fund is not thrilled with the idea of opening it; if a lot of formerly captive customers head for the exit, the pool of assets on which the manager collects a percentage fee will suddenly shrink.
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