If we stop and examine how businesses and organizations respond to a recession, there are five basic strategies beyond short-term steps to conserve cash. They can be used individually or in combination and the best choice is a function of market conditions, your current capabilities and resources, and your goals.
I’ll be discussing the what, when, and how of each one in future posts. But first, I’d like to get this blog launched by discussing recessions in general and some of the long-term economic changes that organizations should consider in crafting their strategy. To do that, look for a series of posts entitled “Gauging economic climate change.”
***Update 2/22/2009: I’ve refined one of the strategies in the graphic (Substitute) and will be exploring these five strategies in some of my next posts. A shout out to my friend Dan Lasman whose insightful critique led to this change!
***Update 3/8/2009: With the Economic Climate Change completed, I will begin writing more about these recession strategies this week. Sign up for email updates and you’ll receive them as they come off the presses!
Topics: Adaptation, Competitive advantage, Farming the gaps, Hyper-competing, Pivoting, Retrenching, Strategy, Substituting
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