alt Hacker News> It's fascinating how "profitable but low margins" equates to "struggling" to so many.
A high revenue but low margin business is a lost opportunity to invest that same revenue in a different area with better margins.
> It's fascinating how "profitable but low margins" equates to "struggling" to so many.
A high revenue but low margin business is a lost opportunity to invest that same revenue in a different area with better margins.
If you shut down the things that bring in $5 billion revenue, you no longer have $5 billion revenue, you have a gamble that some other industry can ramp up to that quickly. $5 billion has never been "quick money". (Inflation would have to get a whole lot worse for that to happen and that point the company has too many other problems.) That's "Opportunity Cost" among other bits of what used to be past corporate wisdom that companies have seemed to have forgotten.