Challenges
The effects of the recession have most of the Western world in their grip. Tepid growth, public debt, and the euro’s crisis have unsettled governments, industries, and consumers. For the foreseeable future, unfavorable conditions will challenge companies on two fronts: They must survive in the aftermath of the crisis while at the same time identifying and utilizing the opportunities that the new realities offer.
Businesses can make use of a slow-growth economy to develop their strengths and enhance their long-term competitive position. Every company must find its own response to the postcrisis landscape by answering these important questions:
What path will markets take, given the world’s new economic and political realities?
What will the consequences be for our business activities?
Are we moving toward inflation or deflation? How should we respond?
What opportunities are there for us in stronger, more rapidly developing markets?
BCG Competencies
The speed and depth of the changes unleashed by the financial crisis—some sparked by it, some accelerated by it—are unparalleled in recent history. In many industries, the waves have receded and recovery has set in. But shifts in regard to customers, capital markets, growth, and profitability will permanently alter the competitive landscape.
BCG provides comprehensive expertise in the development and evaluation of scenarios for the aftermath of the crisis. We use our industry know-how at the local, regional, and global levels in combination with our functional expertise to analyze the impact of the crisis on our clients’ industries, competitors, and positioning. We also work with clients to design action plans to strengthen their competitive position and achieve their earnings targets in times of slow growth.