PA’s Mark Thomas, a business strategy expert, is quoted in the Financial Times State of the Economy Report, in an article about the opportunities for companies to increase market share, even in today’s slow growth environment.
Mark argues that we are living in a “zombie economy” where consumers, banks, governments and companies are limping along without seeing real growth. He states that the companies that will succeed in this economy will be the lowest-cost producers and the most liquid and agile.
Mark highlights the importance of liquidity because it can dry up suddenly or become prohibitively expensive and says, “Those that do have that access [to liquidity] will be able to act opportunistically to strengthen their portfolio”.
Mark also argues that companies need to think about how to do business differently because consumers are behaving differently. They are prioritising and only buying what is important, trading down and postponing big purchases.
Mark goes on to highlight how some companies have adapted to these changes such as luxury goods businesses that have introduced cheaper “bridge lines” or Waitrose which introduced an Essential value line. He concludes that this means companies need to focus on their best prospects for profitable growth, citing the example of Holiday Extras, an airport hotel and parking provider, which found that 80 per cent of its profits came from families and so is now concentrating on offering those customers extra services.
To find out how PA can help your organisation be agile in the zombie economy, please contact us now or click here to visit our pages on how your business can be fit for the future.