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Strategies in Economic Downturn

by on February 9, 2010

By analyzing three different cases of adopting new marketing strategies in economic downturn: 1) Sysco’s Business Review program, 2) Starbucks’s new instant coffee, and 3) PG&E‘s investment in energy-efficiency programs, this emerging issue paper several important factors that should be considered when organizations try to implement innovative strategies such as downsizing and introducing new products. Innovative marketing strategies have various benefits, risks, and challenges and affect the future of organizations. However risks in implementing innovative strategies need to be avoided or mitigated.

In the economic down turn, companies have to adjust or change their marketing strategies to keep market share and competitive advantages. Adopting innovative marketing strategies can be lucrative, but however risky. Managing or mitigating the risks in implementing strategies is equally important as the creation of innovative strategies. To manage those risks, companies could 1) make the effect of new strategies measurable and traceable, 2) make sure new strategies do not contradict companies’ existing business values, 3) not base strategies on implicit business assumptions, and 4) try to find multiple profit sources in strategy implementations.

Xiaopu Yu

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From → Coursework

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