Article

Advantage in Adversity

Winning the Next Downturn

Martin Reeves, David Rhodes, Christian Ketels and Kevin Whitaker

Boston Consulting Group, 2019

Read the article

Read or listen offline

Amazon Kindle

自动生成的音频

1×

登录收听有声浓缩书。

自动生成的音频

Editorial Rating

Qualities

Applicable
Well Structured

Recommendation

The next economic downturn is coming. It’s just a question of when. Economists aren’t able to predict the timing and severity of an impending economic slowdown, but that shouldn’t prevent companies from preparing for one. In this report, experts from the Boston Consulting Group’s Henderson Institute provide practical, evidence-based recommendations for how businesses can not only survive economic downturns but come out stronger than before. Business leaders will appreciate the authors’ encouraging advice on how to turn adversity into a competitive advantage.

Summary

Economic downturns present opportunities for companies to pull ahead of the competition.

During the last four economic downturns, an average of 14% of companies succeeded at increasing their sales growth rate and EBIT margin (the ratio of Earnings Before Interest and Taxes to net revenue earned), while 44% of companies saw those metrics decline. With proper foresight and strategic planning, companies can indeed take advantage of various downturn-related developments that will allow them to emerge from a downturn stronger than before.

Greater competitive volatility, for example, can present openings for companies to pull ahead of the competition. Slowdowns also provide opportunities for investing in operational improvements or acquisitions. Companies with considerable cash reserves may look to purchase or merge with a struggling...

About the Authors

Martin Reeves, David Rhodes, Christian Ketels and Kevin Whitaker are managing directors and economists at the Boston Consulting Group’s Henderson Institute.

Advantage in Adversity

Winning the Next Downturn

Read or listen offline

Editorial Rating

Qualities

Recommendation

Summary

Economic downturns present opportunities for companies to pull ahead of the competition.

About the Authors

My Highlights

Comment on this summary or 开始讨论

More on this topic

By the same authors

Learners who read this summary also read

Related Channels