I thought the following research was interesting given all of the talks I have been give lately about developing a compelling value proposition:
Companies that concentrate on their core business dramatically improve their odds of success in a downturn. About 95% of the companies that qualify as "sustained value creators" — those that maintained at least a 5.5% real growth rate in revenue and profit over ten years while earning back their cost of capital — are leaders in their core businesses. They not only perform better during expansions but recover faster when growth rebounds from an economic slump.Source: Bain & Company -- click here.
During the last recession, for example, the average net profit margins of this group bounced back to 6.5% in 2002, only slightly below pre-recession levels in 2000. Their competitors fared much worse, with average net profit margins falling to around 1% during the same period, a drop of about 3 percentage points.