Winning in Recessionary Time

As countries across the world are gripped with recession, companies too are experiencing the heat of recession with decreased revenue, sluggish growth, and low business opportunities. Though cost remains the same or in some cases more for the companies, resulting in closure of companies in extreme situation.

As a counter measure, companies are reducing the employee strength, identifying innovative ways to reduce the costs, among other tactics. However, research and analysis shows that there are companies such as Intel, Southwest Airlines, etc. who have done well during and post recession. How they have achieved it? Did they follow extraordinary tactics or strategies? There are some of the questions which arise in our minds.

The common actions pursued by such companies are:
• Assessed vulnerability to different multiple economic scenarios
• Tightened the Profit and Loss and Balance Sheet
• Reduced costs for strategic fit
• Maintained R&D spend
• Focused on immediate revenue generation

The common themes alone did not help the companies achieve the desired result. They also followed the following principles:
• Focused on the core capabilities, markets, and products
• Adopted selective acquisitions/partnerships at bargain prices
• Maintained or increased the degree of value chain flexibility
• Reduced cost toward non-customer facing activities
• Maintained high level of market communications
• Changed the rules of the game within the industry
• Invested in talent and provided targeted development

Further reading:

Four Ways to Maintain Your Revenues through Recessionary Times
Preparing for the next downturn
Capitalizing on Curves
Marketing to women: Hello, girls