To the Amazon point - Not all companies expect or even desire profit from all of their brands. Sometimes, they will sell a brand name product at a break-even point or even a loss if it means that they can pick up market share. Once the market share is of a substantial percentage, they can then raise the costs and make up the past lost profits.
Not all companies expect or even desire profit from all of their brands. Sometimes, they will sell a brand name product at a break-even point or even a loss if it means that they can pick up market share. Once the market share is of a substantial percentage, they can then raise the costs and make up the past lost profits.
Sony did this with televisions. Sold cheaper, decent quality TV's and put the American television industry in the ash heap of history.
Have been doing this myself with my company. We still make money, but we used our resources and technological expertise to help us live with a much smaller profit margin than our competitors. Our competitors have either started mimicking our processes or they gone out of business. Frankly I was amazed and a little shocked at the margins they were making. While I haven't made any friends in the industry, we went from zero to a substantial player in our region in under five years.