Are Brands’ Pursuit of Higher Profits a Huge Strategic Mistake?

Richard A Meyer
3 min readSep 18, 2023

In business, profit is often regarded as the ultimate measure of success. Companies strive to increase their bottom line year after year, seeking higher profits as a sign of growth and competitiveness. While profitability is essential for a company’s survival and sustainability, pursuing higher profits can sometimes lead brands down a treacherous path.

The Profit-Centric Approach

The pressure to maximize profits can be overwhelming in today’s hyper-competitive business environment. Shareholders and investors expect continuous growth, and company executives often face a relentless race to meet these expectations. As a result, many companies adopt a profit-centric approach, where the primary goal is to generate as much revenue as possible, often at the expense of other considerations.

The Pitfalls of Profit Maximization

While striving for higher profits is a natural and necessary aspect of running a business, it becomes problematic when it leads to a narrow focus that neglects other critical factors. Here are some of the key pitfalls associated with the relentless pursuit of higher profits:

  1. Short-Term Thinking: Prioritizing immediate profits can encourage short-term thinking, where brands make decisions that may yield quick gains but…

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