Article

Downturns Are Roller Coasters for Weak Firms

3x to 5x. During downturns, weaker businesses are the shock absorbers of their industries—their margin swings are often three to five times that of the leader.

By Bain Global Strategy practice

First published on febrero 19, 2010
min read


3x to 5x. During downturns, weaker businesses are the shock absorbers of their industries—their margin swings are often three to five times that of the leader. That gives companies with strong, focused cores the opportunity to invest and gain ground on their competitors during the downturn and the subsequent recovery. Source: Profit from the Core: A Return to Growth in Turbulent Times by Chris Zook and James G. Allen Bain Book Profit from the Core Learn more about how companies can return to growth in turbulent times.

3x to 5x. During downturns, weaker businesses are the shock absorbers of their industries—their margin swings are often three to five times that of the leader. That gives companies with strong, focused cores the opportunity to invest and gain ground on their competitors during the downturn and the subsequent recovery.

Source: Profit from the Core: A Return to Growth in Turbulent Times by Chris Zook and James G. Allen