Can Priceline Remain Profitable?
from the is-that-the-right-question? dept
Some Whartonites have gone around asking their professors what they think of Priceline’s recent profitability announcement. The article goes back and forth about whether or not Priceline can remain profitable. I have problems with these types of discussions. The basic gist (in this case, at least) is that they have a lot of threats coming from all sides – meaning that it may be difficult to stay profitable. This may be true (and I’ve never been a huge fan of the Priceline business model). However, if you’re in a good business then you should be threatened from all sides – because others see it as a profitable business. The true test of a sustainable business is if they can figure out how to change with the times, and make sure they remain profitable when faced with all these new challenges. So, the general question of just how profitable can Priceline stay seems to me to be a question about just how nimble and creative they can be to stay ahead of the pack.
