Transcription: To unravel the mystery, it probably makes sense to start with the basic equation for profits. Profits equals revenues minus expenses. In this case, an investment leads to a direct increase in the expenses. Expenses will go up as you invest in areas such as customization, delivery, service, channel management, and the like. Now, if expenses go up and revenues remain the same, then profits have to go down. Then the question is, why don't revenues go up immediately in response to the investment?
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