When a storm or crisis starts in business, it destroys many. And there are a few who survive that. After World War I, Europe and the United States went through 11 crises. An example is the .com bubble, which occurred between 1994 and 2000.
Of course, now the world is in a corona crisis, which, in addition to reducing demand, has also caused health risks. Thousands of companies were destroyed in the “dot com” crisis. And some, like Amazon, survived. It is interesting to know that the value of Amazon shares was 107 billion dollars, which reached $ 7 billion after the crisis. As Amazon did not make any profit for several months.
What policy do you think saved Amazon?
Here, the company looked at which of the available items provided the most liquidity. What do you think was the answer? That’s right … the book is the same strategy as before.
Second, they implemented a policy of austerity and spending right. That is, for each task, they first acquired the necessary knowledge and information and then acted. For example, to keep costs down, they made tables from wooden boards. The next company was Google, which earned $ 19.1 million in its first year of operation in 2000. But the following year, its revenue more than quadrupled to $ 86.4 million.
Why when the big giants had no income, and the company of many was destroyed, why did such a start-up have such a high income? Google’s goal was to outperform competitors such as Bing in search engines and to be number one.
One of the largest companies in the world, which has a history of more than 100 years and produced over 55,000 products, is 3M. The company consistently used a decentralization strategy. And somehow entered new markets and new goods, from shoes to video tapes. The time of recession and crisis is the time to take risks and you have to share the risk like 3M.
With the help of savings, you can get through the crisis. But by providing high quality, you can earn money in that period.