Catching of a small fish in muddy water.
Catching of a small fish in muddy water.
The companies with good balance buy up competitors, reduce the prices
Also conduct active marketing.
Unlike the other heads of hotel business searching
Consolation and the help to the seriously suffered sector in
Washington, the general director of a network of hotels Hilton Stephen
Bollenbah (Stephen F. Bollenbach) approaches to business in another way. It
Not stinting spends money for repair of such objects by the first
Sizes, as Hilton and Towers in San Francisco. Thanks to the low
Population of a complex on 1900 numbers behind once full
- from drapri to furniture - 10 floors, instead of 5 are exposed to alteration,
As it was planned.
Add here repair cost in branches Hilton in New
Anatto tree, Clevelend and Salt Lake City also receive the sum in 40
Millions dollars. Here do not enter 25 million dollars, which
Bollenbah plans to spend for tower building on 319
Numbers in Portland, the State of Oregon, a new ballroom in La
Dzholle, the State of California, and new restaurant to Alexandrias, staff
Virginia. Bollenbah it is assured: "Now it is a high time to select at ours
Competitors a market part ".
The uncertainty called by recession in a combination to dangers and
New expenses which are involved by terrorism, connects
Hands to considerable number of large managers, and here resourceful people
Type Bollenbaha see in it magnificent possibility
Strategic advancement. Their purpose - to outwit, bypass or
Easier to push away weaker competitors to be pulled out
Further away, when lifting will begin. "In the presence of the strong
Financial structure the rate on market capture during time
Economic recession often it appears perfect strategic
Course ", - David Vajss (David A makes comments. Wyss), main
The economist of company Standard and Poor's.
Here not simply strong nerves unequivocally are required and
Readiness to stake all. Investments during recession
Business activity demand good balance, powerful base of the company
And it is frequent those advantages which are given by position most
The economic manufacturer in the market. At whom all it are,
Reduce the prices, increase investments in marketing, invest
The considerable sums of the new equipment also buy the weakened
Contenders in hope to leave a dive much stronger.
If to look on the other hand, it very much an opportunity,
To press competitors to a wall. The companies, capable to take
Benefit from recession, have approached to it in a full financial order, and
Many have continued balance strengthening. Unlike sicklier
Contenders, such endurance allows them to grasp
Additional sites of the market, not being afraid of the short-term
Financial consequences. Actually, this tactics quite often
It is directed on increasing financial pressure on
The weakened firms. "For lack of strong balance the company simply
Does not presume some kinds of risky operations, be
That operative risk of job at a loss during the defined
Time or business risk of any acquisitions or expansion
Business ", - Robert Atkins (Robert G speaks. Atkins),
The vice-president of company Mercer Management Consulting Inc.
However financial health is only the beginning. A question in that,
As it is better to use it. The majority looks at it simply:
To get the property. Today actions of the majority of the companies
Stand essentially less, than one and a half years ago, therefore on
Hunting there were many fans of cheap sales. The leader of the retail
Electronics Best Buy Co sales. Has considered the concept of supershops
Insufficiently perspective also has actively started to buy more
Accessible shops of other formats. Thanks to the recent
To acquisitions, among which network Future Shop Ltd. In Canada,
Switching on 91 shop and costing 377 million dollars,
The number of shops Best Buy has increased four times. "If
To compare to the prices for other trading houses in this region,
We have received this hardly more cheaply ", - the head of the financial speaks
Services of company Darren Jackson (Darren R.
Jackson).
There are the resourceful businessmen, wishing to use
Situation, even in the industry of mass media, though
Mass media stays in the hardest for last 10-15 years crisis.
Tribune Co. namerena to increase the share holding of broadcasting companies,
Despite serious losses because of falling of volumes of advertising.
In parallel it puts 100 million dollars in the joint
The enterprise with Knight Ridder Inc. On acquisition of the network
The newsletter on vacancies Headhunter.net, taking under
The control that is no time was considered as terrible threat to all
To newspaper business of thematic announcements. "As speak the exchange
Brokers, it is necessary to buy on pessimism peak ", - confirms
President Tribune Dennis FittsSimmons (Dennis J. FitzSimmons).
Purchase of the new property for someone is good, but is and
Faster way to strengthen the position at the expense of competitors:
Sharp reduction of prices. If as it became absolutely clear after
Christmas season, when trading networks from Gap to Nordstrom
Operatively and often entered discounts, so it that the strong
Declared price war for market repartition. Here a key to success
Simply powerful positive balance serves not. To break,
The lowest level of expenses in branch is required. Then any
Price war garantirovanno will more strongly strike on profits and
Market position of competitors, instead of on the company rushing ahead
All downwards on a spiral of the prices.
By such logic is guided Dell Computer Corp.,
Reduced the prices for computers in 2001 on 16 %. The concrete prices
On concrete cars have fallen in some cases to 47 %. Result:
Market Dell share has grown on 1,1 % to 14,5 % in comparison with
The last three months (last month comparisons -
September). Data International Data Corp are that., engaged
Marketing researches. Reduction of prices has allowed Dell to beat out
Soil from under feet Gateway, ottjapat a part of market Hewlett-Packard and
To pull out at Compaq a title "Number 1" on sales volumes of computers.
In addition to all for this year Dell has caught 36 large
Corporate clients with a package of orders on 270 million
Dollars. "We work in a mode of an intensive set of clientele, -
The head of the company Michael Dell (Michael S confirms. Dell). - On
The market at all decline. At us lifting "proceeds.
How? Thanks to flexible systems of supply,
Manufacture and deliveries Dell has a low point of a recoupment,
Allowing firm to reduce the prices, remaining afloat. However, Dell
The company was necessary to reduce thousand workplaces, and recently
Declared the first negative quarter balance for the last
8 years. But for the quarter which has terminated on November, 2nd, Dell has received
Profit of 429 million dollars at a 7,5 billion turn
Dollars. And when technics sales will be included again into norm, Dell
Expects new profits. They will be provided with the clients already involved
The offer of cheap personal computers and weak servers. Now they will come
Behind more expensive equipment.
Certainly, only on reduction of prices far you will not leave. nesmotrja
On a tightening of the belts, some companies continue to put
Money there where it is required. In a network of shops Wal-Mart Stores
Inc. Do not despond. Here undertake the greatest in the
Histories expansion. Being assured that will be possible to them
To intercept the market of companies Kmart and Sears, and also separate
Supermarkets, in this cheap trading network namereny to spend in
Current year on capital projects of 10 billion dollars (on 1
Billion more than in 2001) and to increase the trading areas
Approximately on 4,2 million sq. metres. "We consider ourselves, perhaps,
Unique in the world the growing company with a turn in 200
Billions dollars ", - speaks J.
J. Fittssimmons, the senior vice-president on financial questions
(J.J.Fitzsimmons).
The marketing, usually one of the first victims of recession in economy, in
The companies similar Sara Lee and Wendy's International, on the contrary,
Receives a powerful charge. Sara Lee makes the big spectrum
The goods, switching on rich cheese cakes, stockings and a cream for footwear.
In 2002 the company increases the advertising budget by 25 % - to 434
Millions dollars. It is considerable growth even for the best times. And in
Present circumstances, when quotations on television advertising
Have decreased, the brand will get the most serious advertising support.
Head Sara Lee K.Stephen MakMillan (C.Stephen McMillan) even
Has warned the managers what not to see it a bonus, if they
Will try to leave on the planned financial indicators for the bill
Reduction of expenses by marketing.
Taking into account economic and political uncertainty,
Complicating planning, actions MakMillana it is absolute
Are opposite to natural reaction. Certainly, set of the companies
Blows a signal to deviation. And still it is not excluded, that in the best
Position there will be those players who will move in the risky
Opposite direction. And to do correct rates in this
To game the strong can only.
Dzhuli Forster (Julie Forster) in Chicago from Andrew Parkom (Andrew
Park) in Dallas, Christopher Palmeri in Los Andzhelese and materials
Bureau Business Week. - Business Week.
The rate on growth.
Despite the difficulties, some companies use
Possibilities of economic recession for strengthening of the positions.
The basic strategy:
Reduction of prices.
The lowest expenses for manufacture in the computer industry
Have allowed company Dell Computer to reduce the prices and to grasp a part
The market of competitors Gateway, Compaq and Hewlett-Packard, let
Even by strong pressure upon profitableness borders.
Growth of capital expenses.
Bad prospects for retail trade? Only not for
Companies Wal-Mart which namerena to open next year 415
Shops, realising the most scale plan of capital expenses in
The history. At the expense of it it is planned to select a part of profit at
The weakened competitors, such as Kmart.
Aggressive marketing.
Expenses on advertising are cut down almost everywhere, but the companies
Sara Lee and Wendy's plan to enclose in advertising accordingly on
25 % and 30 % are more.
Falling of the prices for advertising in mass media
Will allow them to receive the big return for each dollar.
Acquisition of the new property.
The prices fall, therefore the network of supershops Best Buy has solved not
To miss possibilities to close up a gap in the strategy by
Acquisitions of trading network Future Shop in Canada, and also others
Retail networks of a smaller format for trade in electronics.
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//* an information Source: the Profile, 14.01.02
//* Reg. Nom. - 1120100097.10-------------------------------------------
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