juarezlowe » business http://juarezlowe.com/blog Management lessons made simple Wed, 04 Jan 2012 00:59:41 +0000 en hourly 1 http://wordpress.org/?v=3.3.1 Dealing with a recession/downturn http://juarezlowe.com/blog/2009/01/20/dealing-with-a-recessiondownturn/ http://juarezlowe.com/blog/2009/01/20/dealing-with-a-recessiondownturn/#comments Tue, 20 Jan 2009 11:06:53 +0000 Juarez Lowe http://juarezlowe.wordpress.com/?p=145 Everywhere we go people are talking about recession/downturn and a gloomy economic outlook. In fact some studies show that more millionaires are made during a downturn than during a boom.

If you have a relatively small market share in a fragmented market, this is your opportunity to grow market share. Why?
1) Some of your competition may go out of business. This will mean that you have a new potential market which needs your service/product (albeit in reduced quantities)
2) Your consumer may now have a reduced budget. Overall your market will shrink – perhaps from RM100million to RM70million. Is that a large contraction? Yes. However, in your fragmented market, your business may have 1% or less market share. That still gives your organization large room for growth while some competitors shut down.
3) Your product pricing may have to be amended. We are currently offering a product where we tie in our fee with the customers performance. If their organization increases its profits, our fees increase with it.

Do post your thoughts on this.

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