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ABB Is a Swiss-Based Manufacturer of Industrial Equipment with Annual

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Essay

ABB is a Swiss-based manufacturer of industrial equipment with annual sales of $30 billion. At one time, its salesforce was organized by product: generators, boilers, transformers, and so forth. Each salesperson was an expert on the product line he or she sold. Then it adopted a customer organizational structure. Why might ABB have made this change?


Definitions:

Elasticity

An indicator of the degree to which the demand or supply for a product varies following a price change.

Price Elasticity

A measure of how much the quantity demanded of a good responds to a change in the price of that good, indicating the sensitivity of consumers to price changes.

Printer

A device that converts digital documents into physical copies on paper or other printing materials.

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a given price over a specified period of time.

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