Some of the strategies I can think of which will not only help businesses survive the present turmoil but also keep them fighting fit to take on growth opportunities as the economy starts to stage a comeback:
- Focus on operational efficiency – Shift from aggressive expansion plans to productivity improvement plans
- Create alternate revenue streams – So that impact of slowdown on top line is minimized. Diversification is an option here.
- Rethink your product, market and customer mix – Simple re-alignment may help you hold on to your bottom line
- Emphasize sales and service as well – Encourage customer loyalty through well planned service and support initiatives
2 comments:
Economic slow down also gives us opportunity to grow and rebuild. We can think on areas which we can come out of. Why not to ask ourselves where from my gold is coming. Are we equally good in all areas?
Alternate revenue stream is a good idea provided our existence is at threat, but if situation is not that serious then there is no point in loosing focus. We can invent or plan for more by staying in the same boat. Some time to get bit extra in alternate ways we may end up in lot of investment in terms of time and money which could have given us equal or more return if invested in main stream. Just try to maintain the balance.
Global recession may present opportuniity for diverisification through M&As. However expansion projects on paper are at best defered and as far as ongoing projects are concerned capital cost are bound to go high. This area will be a major challenge for business leaders
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