At the end of the recession tunnel there is a decision point
During a recession every company and every decision maker will cut on costs thus buying less services or products.
There will be no decisions on new directions for the company or implementing new solutions: companies stay with existing proven solutions and services as there is no room for experiments.
Example: The recession started when email marketing was in use and is being used throughout this recession.
Recession tunnel
As the world keeps wandering through the recession tunnel, business will be spending less and less on services or solutions. The journey through the tunnel is long, cold and dark.
However one day the end of the tunnel is there. Not all businesses or markets will emerge at the same time from their tunnel, but all will eventually get out as their business starts growing and expanding again.
Recessions bring new solutions to adoption
At that moment decisions will be taken fast as new opportunities with new business are present and lie ahead for companies. These decisions concern the services and solutions to run or operate their business.
The more efficient and more beneficial these services and solutions the more likely find adoption.
This is the dangerous decision point as it is a point of inflection.
At the end of the tunnel people and companies will decide how to proceed with their business.
Some of the previously used solutions will be reordered, whereas other solutions will be compared with new offerings of solutions on the market. As market constraints and economies of scale have changed the outcome can be or will be different influencing the decisions that have to be taken.
All recessions have always leaded to the adoption of new solutions. In many cases new solutions that have been around for a while (even before the recession), but couldn’t find a market that would accept and implement the new solution in large quantities.
Change at the end of a recession
Thus your current solutions can sell still relatively well into your market even during this recession, but once the business of your customers starts picking up again, it might just be your customers choose a different solution as they have evaluated and analyzed competing solutions sometimes not directly from the same pool of solutions.
Example: instead of using email marketing solutions for lead generation, web services that reveal the company names of the website visitors could be preferred. This can be for many different reasons as people get fed up with the emails received or have become more educated in researching and retrieving information from the Internet.
Thus even if your current business is not doing to badly during this recession, it is not a guarantee for further success once the recession is over. Change can happen rather fast.
Successful solutions to laggards and challengers to leaders
Although we don’t know how long the journey through the recession tunnel will be, change is upon us when this recession comes to an end.
The problem is nobody knows what will be next: as successful products can become laggards overnight and the challengers can become leaders.
This change can be driven by technology that has become outdated, social preferences that have changed or new economics of scale have become possible.
Will you solutions, products or services rise to become leaders or become the laggards?
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