Viable strategies in volatile times

Abstract

The article aims at the description and assessment of strategic options for companies which have necessary resources to take the advantage of the current economic downturn. The theoretical framework is based on two predominant approaches to competitive advantage and the practical implications for actions to be adopted are derived from the recommendations published recently by the leading consulting firms. While quick fixes ensuring a short-term survival (mostly financially based cost-saving measures) are an essential first step, a longer-term success lies in the effective adoption of the scenario-planning techniques, active competitors intelligence and a proactive attitude to restructuring through a combination of mergers, acquisitions and divestment decisions.

Keywords

• economic downturn
• crisis
• competitive advantage
• strategic choice