Here’s why I think that; its not because they can’t, but because to do so is not in their or their shareholders best interest.
Increasingly, businesses don’t generate profits. They generate capital gains.
Here’s the US opportunity… if your company makes profits, it will have to pay taxes on them. (nominally, in theory, 35%) Then you and your investors will have to pay taxes on them again when they’re distributed to as dividends.… Read more
When Snap reported “earnings” (I call them losses, big losses) this week – media headlines were strangely over-the-moon with praise, from TechCrunch (“Snap shares skyrocket on first earnings beat with revived user growth”) to The Wall Street Journal (“Snap Climbs Back Above IPO Price After ‘Shocker’ Earnings”).
The theory was that Snap had reported “better-than-expected earnings.” Thanks to these headlines, over February 7 and 8, Snap shares rocketed up 48% though they have fallen off somewhat since then.… Read more
Netflix shares continue to rise despite management stating costs will rise as will borrowing. All this to create more content
So let’s think this through… how will Netflix make a profit
1. Not gonna happen, shareholders benefit from increasing valuation- smoke & mirrors like Amazon
2. Let’s get more subscribers- sure but there is a finite number of people to watch.… Read more
Why do businesses fail?
Sometimes it’s bad management or poor execution, but more often it’s a simple inability to create a product that people actually want to buy.
And how do you know what people want to buy? You ask them.
Getting customer feedback sounds simple enough, but in practice, getting useful quality feedback from customers can be challenging. I was asked in a recent session I was leading about how to assess customer assessment of their companies performance.… Read more
The foundation of pretty much any business is gaining and keeping customers.
What do I mean by a customer decision journey? This is the process your customers firstly select your business to consider buying from, then evaluate your business, and finally buy your product of service, but it also encompasses their experiences post purchase and into buying or using again building a positive performance loop.… Read more