|
Margins = "efficiency"
has to be above zero, but actual number is a matter of market and company's strategic positioning in it. Number comparison between companies only makes sense within same industry segment or even product line.
Comparing BMW's margins with Toyota margins makes little sense.
Comparing 5-series margins with E-Class margins make a lot of sense.
revenues = "scale"
has to be as big as possible. If you max out on a market segment, you go to the next. When all market segments are maxed out, you create new ones to destroy old ones hoping that the new ones will be more profitable or you can get more scale (exhibit A: X6 and the segment it spawned)
|