When the economy isn’t doing well, innovation can be a challenge for businesses. Resources and expenses may have to be adjusted, which hampers progress. Even so, it is still possible to seek out innovations without straining the budget. A good course of action would be to focus on moderate advances instead of large-scale breakthroughs. Additionally, companies should cultivate an environment that encourages workers to voice creative concepts and explore them without feeling apprehensive about potential repercussions.
Outside of scale back innovation, believe it or not companies have a chance for expansion. They can expand their relationships with their already built in customer base. By focusing on the customers you have and their needs, companies may find hidden business opportunities. An example of this is T-Mobile’s acquisition of Ryan Reynolds’ Mint Mobile. T-Mobile spent 1.35 billion dollars for Mint, which provided phone services for 15 dollars per month and allowed them to secure two to three million users. Mint was already taking advantage of T-Mobile’s virtual network to provide its customers with service; making the purchase all the more practical since subscribers wouldn’t have to be moved over onto its own platform at additional cost. It proved to be mutually beneficial; offering prospects of expansion and growth while utilizing limited resources for a further positive result.
All in all, businesses have a unique opportunity to seize and create new opportunities during the economic downturn. To do so, some companies are implementing some of the strategies I mentioned such as going lean, executing smaller projects, expansions that focus on customer needs with calculated risk and more. This can be scary, but it also presents a chance for growth.