Abstract
The purpose of this study is to verify the effectiveness of profitability analysis in ABM-Growth-Matrix for embodying in the growth with the profit. In Section 2, we reviewed the main methods of measuring profitability. Kotler & Keller (2006) who present a framework for developing the profitability of customers and products as a matrix suggest a profitability analysis that meets this research requirement.
In Section 3, the research site is company A of SME in Japan that deals with both an electronic parts trading and an electronic parts manufacturer. In the research method, the growth potential analysis is by the ABM-Growth-Matrix; on the other hand, profitability analysis is from the viewpoint of customers, products, and strategies, using the gross profit margin as the original profitability index.
In Section 4, we found it that the relationship between growth potential and profitability, looking only at A-rank customers in FY2018, and that there is no strategy that achieves profitable growth among A-rank customers.
