[Editor’s Note: With the announcement of the latest series of tariffs, most economists see a period of increased costs for consumers and businesses, supply chain disruption, and decreased demand for higher-priced goods. It remains to be seen if this disruption in the global economy will lead to recession, runaway inflation, or stagflation. Many companies are paralyzed by the uncertainty; others are overwhelmed by the potential scale of the disruption. I thought it might be a good time to reflect on how some companies have used previous periods of disruption and downturn and turned it into opportunity and long-term competitive advantage. – dpm] |
________________________________________ Think back to several large disruptions – DotCom Bust /Recession in 1999, Great financial crisis in 2008, Covid in 2020. Most companies hunkered down, dramatically reduced costs and tried to ride out the storm. Some managed to survive, some didn’t. There were companies that continued to invest in their brand and product during these times, recognizing opportunity to be prepared when demand came back. Below are some examples: Apple (2001-2003 during DotCom Bust and recession) continued to invest in product development, releasing the iPod in 2001 and laying the groundwork for iTunes and the iPhone. Their competitors were pulling back on product development. It resulted in a huge opportunity for Apple to capture market share. Lego (during 2008 Financial Crisis) continued to invest in innovation and product design during a period when demand for toys and games was in the tank. Lego launched new product lines (e.g., Lego Friends), increased market share, and became one of the world’s largest toy companies by 2014. AirBnb (launched in 2008) Saw the opportunity to promote low-cost travel options during the downturn and scaled rapidly as consumers looked for less expensive alternatives to hotels. Great product-market fit in a tight economy! Firehouse Subs (grew through 2008 downturn) Saw the opportunity to double down on franchise expansion by taking advantage of cheaper real estate in secondary markets. Market share increased as competitors were retreating, yet consumers were still spending in affordable meals. Fastenal (Started small, scaled through 2000 and 2008 downturns) As an industrial and construction fastener supplier, it reinvested heavily in inventory and distribution centers. It became the “Go -To supplier when others were out of stock. It captured huge market share, especially in underserved areas. What is your company’s unique opportunity? Is your market ripe for new ideas, a new delivery model, lower cost alternatives to take advantage of the new realities? The Mead Consulting Group has helped companies identify and execute on opportunities in the last several market disruptions. One example - In several situations, companies transformed from “low -or-no” margin product sales to comprehensive product/service solutions with good margins that dramatically expanded market opportunities. In others, companies were able to offer a new delivery model that addressed customer issues, or reduced cost. Don’t be a victim of this market disruption. Let us help you be active participants with new opportunities in this new world economic situation. Contact me for more information. Mead Consulting Group has worked with many companies to help them transition to a more positive environment that sees the potential and collaboratively works to achieve possibilities. Contact me at (303) 660-8135 or meaddp@meadconsultinggroup.com to explore how to begin to transition your organization to one more focused on executing the strategic future. Best regards, Dave Mead |
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