Background Note | HBS Case Collection | 2003

Customer Migration and Customer Types

by Das Narayandas

Abstract

Describes the evolution of customer relationships using the price vs. cost-to-serve matrix.

Keywords: Customer Focus and Relationships; Cost; Price; Service Operations;

Format: Print

6 pages

Citation:

Narayandas, Das. "Customer Migration and Customer Types." Harvard Business School Background Note 503-072, March 2003.

This case is about how the Boston Consulting Group has approached innovation from its founding to the present day. It discusses the role of the firm's talent market and client market in developing these innovations.

In April 2013, Ron Johnson (HBS '84) stepped down after just 18 months as CEO of J.C. Penney. In his brief tenure, Johnson, an acclaimed retailer respected for his innovation and success in shaping the retail image at Target and Apple, introduced dramatic departures from J.C. Penney's traditional retail approach, and enacted changes quickly and simultaneously, with little market testing. Over Johnson's final 12 months as CEO, J.C. Penney shares dropped more than 50%. The case describes the environments at Target, Apple, and J.C. Penney during Johnson's tenure and how his experiences may have shaped the strategies that he implemented while CEO at J.C. Penney.

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