Marketing and Growth Lessons for Uncertain Times | CXL
The HBR examine contrasts Workplace Depot and Staples through the 2000 recession:
Workplace Depot reduce 6% of its workforce, nevertheless it couldn’t cut back working prices considerably. Though the corporate created an incentive plan to spice up gross sales, its gross sales progress fell from 19% earlier than the recession to eight% after—5 proportion factors under Staples’ postrecession gross sales progress fee.
Against this, Staples closed down some underperforming amenities however elevated its workforce by 10% through the recession, primarily to help the high-end product classes and providers it launched. On the similar time, the corporate contained its working prices and got here out of the recession stronger, greater, and extra worthwhile than it had been in 1999.