There’s sustainable practices and sustainable businesses. The latter is what others are arguing. Undercutting competition to take over a market is a sustainable practice IF you can hold out long enough. I’d wager the country of China can hold out longer than General Motors.
But the business model has to change in order to survive. The company cannot undercut forever, it actually needs to change in order to survive.
The business model of today is not sustainable. They may have a large warchest, they may be able to crush GM, but once they do, or the warchest runs out, the business model must change.
If you want to make the argument that their overall plan with the later change is sustainable, thats fine, but this current phase is not sustainable.
There’s sustainable practices and sustainable businesses. The latter is what others are arguing. Undercutting competition to take over a market is a sustainable practice IF you can hold out long enough. I’d wager the country of China can hold out longer than General Motors.
But the business model has to change in order to survive. The company cannot undercut forever, it actually needs to change in order to survive. The business model of today is not sustainable. They may have a large warchest, they may be able to crush GM, but once they do, or the warchest runs out, the business model must change.
If you want to make the argument that their overall plan with the later change is sustainable, thats fine, but this current phase is not sustainable.