Doesn't it boil down to choosing the rate of expansion?
They could probably expand at a slower rate and keep a profit; or they could spend what would otherwise be a profit to expand at a faster rate. At the moment they seem to be going for option 2 which may be a debatable choice but also very normal for a company in the high-growth phase. Amazon is the classic example for this.
They could probably expand at a slower rate and keep a profit; or they could spend what would otherwise be a profit to expand at a faster rate. At the moment they seem to be going for option 2 which may be a debatable choice but also very normal for a company in the high-growth phase. Amazon is the classic example for this.