The actions taken by 13 successful and globally competitive companies, all of which have been on the Global Fortune 500 list for at least three recessions, have been analysed to understand how they were able to increase growth and profitability during or after the recessions.

The companies are:

·         3M Corporation

·         Arrow Electronics

·         Cisco Systems Inc

·         The Coca-Cola Company

·         Emerson Electric Company

·         General Electric

·         IBM

·         Johnson and Johnson

·         Procter and Gamble

·         Toyota

·         Shell

·         Xerox

·         Wal-Mart

Seven key factors were identified as impacting on companies’ ability to emerge strongly from recessionary periods:

1.       Focus on core business - apply resources to core business to create opportunities to gain market share from competitors who diversify and split focus

2.       Improved process and efficiency – be flexible and take fast action when executing recession strategies such as trimming costs through process efficiencies or correcting wrong turns

3.       Strategic divestment – shred non-core operations to improve liquidity and/or focus on the core strategy. Operating non-core business splits both focus and resources

4.       Contingency planning – it is never too late to prepare for a downturn. Quickly assemble a plan and put in place a strategy for dealing with adverse conditions. This could be formal scenario planning or careful structuring of the business to maximise resiliency

5.       Acquisitions and strategic alliances – these help strengthen, re-focus and position the company for increased growth and profitability. Prices are likely to be lower and there may be less competition for acquisition targets. Acquisitions can also help accelerate access to new markets, products, technologies, customers and talent

6.       Increased advertising and marketing – spend more to increase market share and take advantage of greater advertising reach, possibly at more competitive rates

7.       Research and development – carry out R&D to create new value in core products and services to sway recessionary customers. New product releases can have greater impact in a downturn as competitors are slower to counter with a ‘me-too’ offering

A decline in the economy increases risks for companies but it also provides opportunities to increase competitive advantage, profitability and growth, using the right strategies and approaches.

Download the full Changing the Game: Recession Survival Strategies research report for more detailed analysis on how globally successful companies have survived and thrived during and after economic recessions.