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by andrepew 1525 days ago
As much money as possible over what timeline? Crank profits now at the expense of the long-term business? Lose profits now to improve long-term business?

It isn't a straight-forward call to make. The current status-quo with resellers might be making money now, but there will be long-term brand damage in exchange. Will their business still be viable in 5 years if they develop a reputation for being Aliexpress lite?

1 comments

If you are publicly traded and don't have leverage (e.g. different share classes with different voting rights for the founders) it's a straighforward call to make. Optimize for short term profits or be replaced by someone who will do.
> Optimize for short term profits or be replaced by someone who will do.

No. Optimize for shareholder value.

Amazon shareholders, for instance, are happy to make little in way of profit because Amazon management has shown an ability to increase the value of the enterprise.

In general though, the market is legitimately skeptical of most managers which is not a bad thing.