search this site - type your query and submit

Daily Email Newsletter (Sign-up Free)

Good Examples: Top Companies That Could Come Out Of Financial Crisis

In the current unstable economic situation, in order to provide a way out of the crisis, companies are looking for different ways of development and are working to increase their efficiency. We decided to study the experience of international brands and gathered several cases of well-known companies that could not only survive the crisis, but also get out of it with great advantages over their competitors. Although it sounds barely possible, such companies exist! Here we will walk through the top examples of successful take-offs after failures related to the external economic situation. Reading these examples, you will not only spend a couple of minutes on reading something interesting but also, hopefully, will make some analogies for yourself and your business!

Matsushita Electric

In 1929, NYSE has collapsed. The Great Depression that began after this rapidly came to Japan, affected the whole planet and, of course, this led to massive layoffs around all the big companies of that time.


Konosuke Matsushita took an unexpected decision that shocked all his companions and competitors. The head of Matsushita Electric addressed the workers and employees of the company with a fiery speech: “We will not dismiss anybody! We will not cut wages to anyone! Now everyone should understand that we are a single entity and business is not the most important thing, each of you must attach maximum efforts to make our products the most successful on the market”. After that, the company reduced production costs. At first, it seemed that the business was getting back to the previous level. However, by December 1, 1929, their sales had fallen by half, the stores began to overdo, and it was a threat of a major financial disaster for the entire company.

Then Matsushita declared: “We cut the production halfway immediately, right from today, but we do not fire anyone. We will cut our production. Not for the workers' dismissals but will give them a shorter working week – they will receive the same salary for their work but we will turn to our workers with a request to help us deal with the sale of stock in warehouses”. The workers rejoiced. Matsushita became their idol. Each of them tried to sell some of the products from the factory he worked at for several hours a day and, because the production was halved, soon all stocks in the warehouses were successfully sold out.

Avon

This is another story from the time of The Great Depression. This period was the hardest trial for the most of the companies of that time but Avon did not just manage to survive it, the company began to grow even more rapidly.

During the period of severe depression and unemployment, the women tried to please themselves with something at least nice and inexpensive cosmetics were suitable for this purpose. Women strive to look well at any time. By the way, experts’ studies have shown that any financial crisis causes a significant increase in the volumes of sales of such typically female goods as lipstick, mascara, and other cosmetics as a rule increase in several times. Therefore, during the economic crisis, sales volumes of Avon grew by more than 70%. Moreover, it is important to say that though their prices were already low enough, they were practicing the politics of discounts and sales. It was the biggest success that a company might have. The financial collapse of 2008 was not such a big problem for Avon either; just look at their production, prices, and sale rates today and you will see how successful this company actually is. It is almost iconic.

This company is a good business role model to study if you are a student of Business, Finance or Economics faculty and its success story can be a good topic idea for your research paper (if you are looking for one). If the need to write a research project is exactly what made you read this article, we hope that this information will come in handy for you, and although making some research is always a hard and painstaking thing, maybe you just need someone to pay for research paper today.

Nike

This story isn’t about a global financial crisis. It is about the crisis inside of the biggest company in the sports industry.

In the early 80's, the company chose the wrong marketing strategy and it formed the depository of sneakers in warehouses that could sink even some giant corporation. Nike was a small company in the 80’s, so this trouble could easily end their history.

It took them about three years to overcome this failure. During this time, Nike began to offer the contracts to the different athletes and, at the same time, in 1985, the corporation signed a contract with Michael Jordan. Having invested millions of dollars in an advertising campaign involving Jordan, Nike made him a part of corporation’s culture and therefore, many American teenagers dreamed of having a pair of the same sneakers as the “King of the Air” had. A lifetime contract with the NBA star has not been terminated even today. Jordan participated in the development of some models of boots and sneakers.

In 1987, Nike released the first AIR MAX and it became the second important turning point in the development of the company. For the first time in the practice of the sports shoe market, the customer was able to see how the cushion pad works; by this time, the company has finally come out of a short crisis and started to gain momentum.


Each of these examples is unbelievable and inspiring. With these examples, we could say that any company that wants to come out of the crisis has to build its own strategy, follow it, and be able to adapt to the environment and financial situation in the world.

No comments:

Post a Comment

In comment with "Name/Url" option, only Name is mandatory to be filled.