Going for an unfair share

During volatile economic times, some companies—understandably—become a bit conservative.

Others get down-right aggressive.

In the past few days, I’ve noticed stories about two companies that are planning to stomp on the gas pedal at about the same time many others are still tapping on the brakes. In one story (MediaPost), Del Monte is reported to be increasing their marketing expenditures by up to 40% in the coming year. In another article (TIME/Yahoo Business), Wal-Mart has launched an initiative dubbed “Project Impact,” which takes aim at key competitors in a variety of categories.
Implications: One of the most prudent things a company can do is anticipate—correctly—that a recession is at hand, and preserve resources accordingly. But one of the most profitable things a company can do is anticipate—correctly—that a recovery is at hand, and make a move to gain market share where competitors are still in “caution” mode.

Nobody can predict, with absolute certainty, when it’s “the right time” to shift from recession to recovery tactics. But if you scour the major media, you’ll see that a few pretty impressive players are starting to place their bets.

Mike Anderson