Originally Posted by
nitefr8dog
And the point of this business is to provide your own service so you can control the product you are selling.
That hardly describes DHL's operating philosophy. "Independent contractor" drivers, pilots, maintenance, rampers, loaders, and God-knows what else. Other than a few gals who work in the office, does anybody know anybody who actually works for DHL?
FDX lost hundreds of millions when it first started its international expansion a few years ago I wonder if they where told to just pull the plug and forget it?
If they had lost money on those operations for
20-plus years in a row without making significant inroads to larger or more profitable markets, then yes, somebody (probably their stockholders or a financial advisor like Bear Stearns) would have told them to "pull the plug and forget it."
There's a huge difference between losing money while you
build market share, and losing money because you
haven't built market share. One is temporary, the other pretty much the way it's going to stay barring any major upset or infusion of capital. It's pretty clear where Bear Stearns sits on this one, and why.
Just my $.02