Ames and Yi Fan operate in in the retail business. They presented the following financial ratios:

	Ames	Yi Fan
Average settlement period for AR	62 days	20 days
Average settlement period for AP	51 days	47 days
GP ratio	39%	14%
Net profit ratio	9%	9%
Inventory turnover times	7 times	14.5 times

Required:

[i] Discuss business strategies adopted by Ames and Yi Fan. Support your discussion with three key points.

Hint: one of them adopted a low prices strategy and another one a customised service strategy.