Profiting from crisis
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Profiting from crises can take various forms, from legitimate business pivots to more questionable practices. Below are insights from experts on how businesses and individuals navigate and sometimes capitalize on crisis situations:
Navigating Business Pivots
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Moriarty's Gem Art: During COVID-19, this Indiana jewelry store adapted by launching YouTube live streams featuring their special stones. This pivot enabled them to maintain and even increase sales during the pandemic by engaging directly with customers online 1.
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Ellen Kullman: The former CEO of DuPont highlights the importance of identifying controllable factors in a crisis. Focusing on actionable steps and long-term strengths can help avoid paralysis and guide a business through tough times. Companies should adapt their strategies to leverage their unique strengths 2 3.
Identifying Opportunities
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Reid Hoffman: Emphasizes that crises can shift market landscapes, opening up new opportunities. Companies with the ability to play the long game or leverage their unique advantages can emerge stronger. Evaluating macro strategies and adaptability are crucial 4.
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Brian Chesky (Airbnb): During the pandemic, Chesky focused on showcasing Airbnb's core values and adapting to changes in travel behavior. This crisis-driven shift helped the company align with emerging travel trends and ultimately boost its valuation post-IPO 5.
Ethical Considerations
- Simon Johnson: Discusses how financial chaos can lead to "looting" where executives exploit confusion and government interventions to amass personal wealth. This highlights the importance of price stability and regulatory oversight to prevent such unethical practices 6.
Case Studies
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Buzzfeed: Faced with significant financial challenges, Buzzfeed's CEO Jonah Peretti focused on cutting costs and leveraging their strengths in e-commerce and digital media to position the company for future growth. Identifying long-term tailwinds was key to navigating and eventually benefiting from the crisis 3.
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Brent Beshore: In aerospace, Beshore saw initial adversity during COVID-19 but leveraged the situation to acquire valuable assets and talent, ultimately strengthening his businesses. His approach underscores the importance of not just surviving but using crises as opportunities to improve operational efficiency and long-term prospects 7.
By understanding what can be controlled, focusing on core strengths, and adapting strategies, businesses can navigate crises effectively. However, ethical considerations and long-term impacts must always be weighed to ensure sustainable and responsible growth.
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