Companies should exploit an economic downturn by identifying and meeting emerging customer needs that competitors can’t—or don’t even see. For consumers, the world is changing: Fuel prices are volatile, jobs and compensation are in jeopardy, loans are harder to get, and debts are more difficult to pay off. For B2B customers, volumes and margins are shrinking, credit is tightening, and suppliers are getting tougher. Under these pressures, customers need new types of offerings. It’s an ideal time to go on the strategic offensive and innovate.
Change with Your Customers—and Win Big
Companies should exploit an economic downturn by identifying and meeting emerging customer needs that competitors can’t—or don’t even see. For consumers, the world is changing: Fuel prices are volatile, jobs and compensation are in jeopardy, loans are harder to get, and debts are more difficult to pay off. For B2B customers, volumes and margins are […]
Summary.
Reprint: F0812B
Downturns naturally reshape customers’ needs. While competitors mindlessly cut costs, you should divide your customer base into new segments, whose emerging needs you can serve—and invest in—profitably. You’ll increase market share and market capitalization.
A version of this article appeared in the December 2008 issue of Harvard Business Review.