Amazon is seeing its profits squeezed due to investing in distribution centers and in Kindle e-book hardware and software. If you find yourself in a similar situation, here are some things to consider when investing:
- Building the Brand: Although not all investments pay off, investment is critical to building a strong brand.
- Long Term: Too many brands underinvest for short-term profits risking long-term brand decline. Market share trends, net promoter scores, perceived quality and others are very effective ways to signal trouble ahead.
- Portfolio: Although products, services and brands must be managed as a portfolio, some will be marginally profitable or even unprofitable yet necessary to keep the overall portfolio and business strong.
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