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But this strategy neglected to take into account the cannibalising of VW's more profitable models by cheaper vehicles produced under the Skoda and SEAT brands.
As drivers in the United States grudgingly adapt to higher gasoline prices, automakers seem to be taking a greater interest in building smaller cars that are more than afterthoughts to larger, more profitable models.
Ravi Kant, the firm's boss, insists that earlier predictions that it will lose money on the Nano are wide of the mark: raw-material prices have helpfully fallen, a recent excise cut from 16% to 8% is not being passed on to customers and the majority of Nanos sold are likely to be the fancier, more profitable models.
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The CBGB festival, however, will take place mostly inside existing bars and music halls, a more profitable model in the city.
But the thing to point out is that they have a much more profitable model than many other social gaming-style companies.
While the company said sales of lower-margin, less costly BlackBerry phones remained strong, sales and shipments of its more profitable flagship models were swiftly declining in the United States and Latin America.
Mr Chen admitted there is "significant work" to be done, saying: "The most immediate challenge … is how to transition the devices operations to a more profitable business model".
"The most immediate challenge for the company is how to transition the devices operations to a more profitable business model," said Chen, who formerly managed a turnaround at the software company Sybase.
The decision also highlights the large gulf between the expectations of consumers — who demand a wealth of free and easily accessible content on the Internet — and the media companies, who are seeking a more profitable business model online.
"This decision helps to provide Xerox with additional financial flexibility required to implement our plans to realign our cost base and business structure to a stronger and more profitable business model," the chairman and chief executive, Paul Allaire, said in a statement.
It this second characteristic, however, that I believe gives the TV industry a ladder out, and provides the opportunity for a dynamic, more sustainable, and ultimately more profitable business model.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com