He said the European manufacturer has an amazing
customer reach and scale that will help to accelerate C Series sales, and a vast supply chain that can help the aircraft to achieve cost targets
more quickly to meet
customer demands for lower pricing.
The four critical factors are: (a) businesses with recurring revenue bases — like a renewable subscription — are far better than ones dependent on constantly securing new
customers; renewals are much easier and less expensive to secure than new sales; (b)
customer retention is absolutely critical — all
customers are very costly to acquire and very easy to lose in a world of almost infinite choices; (c) businesses based on products that require constant replacement or renewal (the «razor blade» model) are much
more attractive than durable goods businesses (like selling refrigerators) where the products have very long repurchase or replacement life cycles and where the market could even fairly
quickly reach saturation points; and (d) businesses that offer products or services that had a predictably high rate of obsolescence were much
more attractive than those where the products had long, useful lives.
One benefit of food made by reputable companies is that issues that could prompt a recall would likely be discovered, and
reach customers, much
more quickly than they would for food from other sources.