The rule of thumb here is simple: In an economic downturn, consumers consume less of many products. Invariably, this creates the need for substitutes ... at least for some of the most essential products. Another outcome of a drop-off in consumption and employment is a need for products that become more valuable during such periods when consumers have more time on their hands.
Chakravorti goes further and warns against the cost cutting mentality that has so infected businesses,
Think business model, says Chakravorti. Consider the unintended consequences of cost cutting, and instead focus holistically on the interconnected parts of your entire business model.
