Staying Calm in A Stormy Economy

I spend a lot of time reading articles relating to marketing, leadership and economic outlooks for our economy.  One recent article I came across discussed that most economists believe the economy will decline through the middle of 2009.  This would make this recession the longest since postwar era, 18 months in length.  Some think it could last longer, according to the Wall Street Journal.  Economic downturn is likely to be steep, long and turbulent.  How are you going to adjust and position your company and play on your strengths?

Be sure you determine where you stand.  A tropical storm viewed from a weather satellite looks more or less uniform, as if every area is touching with equal force.  However, on the ground the picture is much different.  I remember when my parents were hit with a tornado in Pinellas Park, Florida back in October 1992.  Their home was hit hard as many in the neighborhood were with losing roofs, walls and entire homes – yet others were still intact.  One community is devastated while its neighbor a mile away escapes unscathed.

So it is with business storms:  even a sharp downturn affects everyone differently.  Look deep at your strengths and vulnerabilities.  Each will have different answers to three critical questions: 

• How is the slowdown affecting the industry I compete in? 
• What is my company’s overall strategic position within that industry?
• What level of financial resources can your company draw on to weather the downturn?

Your best strategy in a downturn depends on where you stand on these three dimensions. For example, if your company is strong financially and has a positive financial position, then your strategic and industry position give you a variety of options.

• You may want to out-invest competitors in marketing to increase customer loyalty.
• You could also attack or even acquire weaker competitors, or you could price products to gain share.
• You may be well-positioned to lead consolidation within your industry, or to dominate critical market niches by concentrating your financial and marketing strength.

Remember, having a positive attitude and being well prepared makes anything seem possible! 

Happy Holidays!!!