Turnaround and Performance Improvement Advisors

 

Where to find New Opportunities – Look, Listen, Learn
Many researchers and demographers believe that U.S. consumption has reached maturity and certain economic factors are likely to support a future of reasonable consumption, incurred debt and savings levels. The “Baby Boom” population burst and related consumption of these folks as they reached peak earning periods of their lives, supported by easy credit and inflated real estate values, is unlikely to occur again for many years.
Fortunately many of our corporations have survived and are likely to be sustainable entities (and that is not to imply the same future of those bailed out as “too big to fail”). Our corporations have finally taken actions that were inspired by fear. They cut costs and continue to do so. They slashed excess inventory. They reined in wasteful capex and began to manage for positive cash flow and to de-leverage their balance sheets. Non performing assets have been sold or otherwise shut down. Corporations began to go-global for revenue growth in some countries that may be at the lead-point of their economic development. These actions were long overdue, yet the impact in the U.S. may not be all that beneficial to our citizens:
·         Employment has been reduced;
·         Jobs have been outsourced and replaced by technology’
·         Capex and development capital has been directed outside the U.S.;
·         Consumer spending has been de-railed, perhaps forever;
·         Tax revenues have been reduced, leading to unpopular cuts to services and the prospect of higher and new taxes, federal, state and local;
·         Government has continued to grow as a percent of our total economy, yet government has not done what our corporations have done by slashing costs and reducing losses (e.g., US Postal Service)
Now, our corporations have a reborn challenge that is “how to grow revenues domestically and globally”, how to develop new products and services that meet the needs and pocketbook of the “new American consumer”. To do so requires that our corporate leadership invest in research, listen to real consumers, and watch behavior of people that visit and patronize the traffic-central retailers of 2010:
·         Staples, Office Depot, Office Max
·         Wal Mart, Target, Kmart
·         Best Buy, GameStop
·         Dollar General, Family Dollar and other dollar stores
·         Walgreen, CVS. Rite Aid
·         Grocery and convenience stores from the high end to the lower-moderate positioned players
·         FedEx/Kinko’s and UPS
We MUST observe what they buy, what they spend, and what innovative behaviors they embrace to maintain their lives within their financial constraints. We MUST test, partner and lead to develop new products, new services, new sources of revenue and new jobs.