Can companies actually grow stronger during a recession? What can they do to capitalise on the problems that their rivals encounter during tough economic times?
Steve Jobs on the recession, reflecting on the last recession as well as the current economic climate...:
"In fact we were going to up our R&D budget so that we would be ahead of our competitors when the downturn was over. And that's exactly what we did. And it worked. And that's exactly what we'll do this time."
Here are four steps your company should consider now:
First, invest heavily in research and development now so that new products and services are ready for launch as the economy begins to grow again. Your acceleration of investment now will yield a strong product advantage in the coming years.
Second, spend some time learning about the customers of your weakest competitors. Your rivals are probably working desperately to save their biggest/best customers. They might not, however, have the time and resources to focus on smaller clients. Focus your attention on these potential new customers, particularly those with attractive growth prospects and strong balance sheets.
Third, identify your most critical suppliers and distributors, and determine if any face the possibility of severe impairment to their business due to the economic downturn. Examine ways in which you might help those suppliers and distributors weather the downturn.
Finally, think carefully about your talent needs. Capitalise on this opportunity to identify and attract talented employees, while there is slack in the labour market.
4 Steps To Growth During A Recession by Michael Robertois