Value Investing CHECKLIST: Qualitative and Quantitative Analysis by Choudhary Vivek

Author:Choudhary, Vivek [Choudhary, Vivek]
Language: eng
Format: epub
Publisher: UNKNOWN
Published: 2020-05-04T00:00:00+00:00

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Customer Analysis

A customer is an individual or business that purchases another company's goods or services. Customers are important because they drive revenues; without them, businesses have nothing to offer. Most public-facing businesses compete with other companies to attract customers, either by aggressively advertising their products or by lowering prices to expand their customer bases.

Businesses often honor the adage "the customer is always right" because happy customers are more likely to award repeat business to companies who meet or exceed their needs. As a result, many companies closely monitor their customer relationships to solicit feedback on methods to improve product lines. Customers are categorized in many ways. Most commonly, customers are classified as external or internal.

Customer analytics is a process by which data from customer behavior is used to help make key business decisions via market segmentation and predictive analytics. This information is used by businesses for direct marketing, site selection, and customer relationship management. Marketing provides services in order to satisfy customers. With that in mind, the productive system is considered from its beginning at the production level, to the end of the cycle at the consumer. Customer analytics plays an important role in the prediction of customer behavior.

1. Customer is an individual or a business organization?While doing the customer analysis, the first question we need to ask is the customer is an individual or an organization, to underhand this, we need to go through the annual report of the company, we wish to invest.

Individual

People buy for themselves or for the family.

Organization

Buy for the other business or associations.Both individuals and organizations need to purchase items to accomplish their daily tasks. There is a large difference, however, in how and why an organization purchases goods and services versus how an individual shop. Understanding these differences is important if you want to tap into both an organizational and a consumer market.

Apple IncThe Company’s customers are primarily in the consumer, small and mid-sized business, education, enterprise and government markets. The Company sells its products and resells third-party products in most of its major markets directly to consumers and small and mid-sized businesses through its retail and online stores and its direct sales force. The Company also employs a variety of indirect distribution channels, such as third-party cellular network carriers, wholesalers, retailers and value-added resellers. During 2016, the Company’s net sales through its direct and indirect distribution channels accounted for 25% and 75%, respectively, of total net sales.

JOHNSON & JOHNSONDistributed to wholesalers, hospitals and retailers, and used principally in the professional fields by physicians, nurses, hospitals, eye care professionals and clinics.

Manpower Group

Governments, office, call centre and industrial services Company, IT company.

Axfood

Health-conscious consumers, residential Customer, Online and Large Convenience Store Chain.

2. Does business depends on multiple customers or largely single customer?This question is based on the risk analysis, if the company largely depend on the single customer, in that case the risk of losing the single customer always will be high compare to the multiple customers, let see some example

Procter & GambleCustomers : mass merchandisers,

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