A crisis can happen in any company, the economic decline may hit even highly developed corporations such as Ford, Coca-Cola, Nike, P&G etc. Crisis does not distinguish the enterprises according to their size or popularity, it can strike when the company least expects it. On the international stage of continuing economic crisis, all companies are trying to survive as they can, applying all sorts of “rescue operations”. Let’s explore the experience of international brands in order to not only survive in the period of crisis, but come out of it with a big advantage and reload your business process.
Way 1. Keep abreast of innovations
Many companies do not pay enough attention to innovation and creativity, although it would seem such companies as Microsoft, Starbucks, Xerox and others have proved that innovation in design is the key to success. It is essential that innovation must be global, not only touch the product, but also the structure of the company. In the result may emerge a new production process and advanced items that will satisfy the needs of the market. As interesting example of such change - the company LEGO, the world-renowned manufacturer of toys. Between 1993 and 2004 the company was faced with many problems related to sales regression.
The new president of LEGO Plagman Paul understood that the company needs innovations. After analyzing the market and consumers, he found that the children become smarter and forward thinking. He reorganized the production in the way they could produce improved LEGO blocks and use them not only in one toy suit. In 2006, LEGO was named the fifth-largest global manufacturer of toys with a profit of £ 717 million; they managed to increase its profit by 6.5%. Do not be out of the swim, innovations are important and inevitable.
Way 2. Have a broaden look: product diversification
Product diversification is a high-risky strategy but nowadays the concentration on a single product may be destructive for your company. Let see how this approach works on the example of "Samsung Electronics". Managers of "Samsung Electronics" claim that all the revolution ideas could have remained on paper if the company had not confronted the financial crisis in 1998. Up to 1995 the company received 90% of the profit from the sales of memory cards. Due to the price crash, the governing body of the corporation realized how risky it was to depend on one product. Today "Samsung" increases the market producing computer products, consumer electronics and communication devices. Nowadays "Samsung" is a world leader in all kinds of technique industry as they are conscious how important it is to set goals for product diversification.
Way 3. Change your brand positioning
Sometimes it may be very efficient to change your brand positioning and examine the outlet area. In the late ‘90s Russian confectionary "A.Korkunov" successfully predicted the migration value of the goods after the crisis and entered the market in the segment of expensive chocolate taking 57% in VIP sector of all chocolate production in the country. Lack of competitors in such segment and fallen prices leaded to the significant leadership in the market and created strategic control of the brand. As a result of successful anti-crisis operation "Korkunov" increased their sales and in 2007 80% of the company was sold to the "Wrigley" for $ 300 million.
In a nutshell, a good crisis management plan without application is like card-castle. There must be a balance between planning of anti-crisis operations and management of the process. The best plans are always simple but attention to detail is extremely important. To reload your company management in the crisis period you may follow one of the strategies indicated above or to combine them in order to create overall strategy and use your "secret weapon" over competitors.