Companies: Surviving To Thriving

Times are tough and, no matter what business you’re in, companies are struggling to keep the doors open through the “Great Recession.”

Fortune 500 companies and small start-ups alike are grappling with the worldwide slowdown that has shrunk payrolls and profits since late 2007.

Despite adverse conditions, some companies are not just surviving but thriving. We at WMB take a look at six of these high performers:

1. Amazon (NASDAQ: AMZN)

Amazon literally began in a garage, similar to how many large corporations started in this country. Amazon’s founder, Jeff Bezos believed the Internet could meet consumers’ needs in a different way. He began shipping books to his customers worldwide in 1995. His vision and sales plan proved to be profitable.

Amazon has grown to be the first place most shoppers go to when placing an order for a book. The company grew sales by 28% last year, even though 2009 was a tough year of deep sales declines for most companies and businesses throughout the world.

The company’s secret was to focus on the long term. Amazon plans to develop new products such as its Kindle 3. The firm plans to expand its market share and is always looking toward its next move.

2. Ford (NYSE:F)

Not too many years ago, the company founded by industrialist and inventor Henry Ford was in deep financial trouble, along with the rest of the American auto makers. The industry was plagued with recalls, safety issues and declining sales. It even looked like Ford might fail until CEO Alan Mulally took over the helm.
It took three years of losses, deep cuts in jobs and expenses, but Ford posted a $2.7 billion net income in 2009. The company also recently announced second quarter profits for April through June of $2.6 billion. Additionally, the company expects to end 2011 with less debt than cash. This is an amazing success story compared to a few years ago.

A complete overhaul, eliminating models from its line, cutting costs and revamping its image got Ford Motor Co. back in the game during a time when competitors, such as General Motors Corp., were on the verge of bankruptcy.

3. Domino’s (NYSE:DPZ)

It’s not easy to admit your product lacks appeal on national television, but Domino’s Pizza did just that. Motivated by a consumer survey (with video clips on TV), the company overhauled the recipe of its pizza, proving that change is good for business.

Under the new marketing change and new recipe, profit more than doubled in the fourth quarter of 2009, increasing sales for that quarter by $23.6 million. People must still like to eat.

The secret to Domino’s turnaround was novelty. The company changed the self-proclaimed cardboard crust and ketchup sauce to a new, improved pizza that brought people in the door.

Time will tell if they can sustain sales but, for now, the pizza giant has turned this new product into a financial success.

4. Snuggie

This company is a surprise success story. How many people would have believed this product would take off the way it did? Snuggie has been called a robe you put on backwards by “Tonight Show” host Jay Leno.

It has been parodied all over TV, but the Snuggie was undoubtedly last Christmas’ hit. The blanket with sleeves was purchased by more than 20 million people during 2009. While sales are not readily available, the product has turned out to be recession resistant.

The one thing we all did last year to save money was take fewer trips. While we were at home many of us turned the heat down and watched TV. The Snuggie is proof that novelty, the right price, and timing can translate into big bucks.

5. Intel (NYSE:INTC)

Intel last year recorded a profit of $2.89 billion; much higher than expected! Intel sat tight during the recession while client companies held off on computer purchases for their employees.

Now, the company is seeing an upswing, with profits soaring to a 10-year high. Intel’s secret to success is simply patience. By waiting for pent-up demand to return, it’s back to raking in cash.

6. Lego

Last year was a tough year for almost all toy companies, except for Lego. During 2009, when most companies were holding tight to ride out the recession, Lego’s profits soared 63 percent. With the toy market stagnant in the United States, Lego expanded to Asia and increased its sales in Europe.

A recent boost to Lego’s cash flow came when soccer star David Beckham admitted he was building a Lego Taj Mahal during his downtime; sales soared 663 percent! This proves celebrity endorsement can influence consumer buying more than other factors and boost profit dramatically.

The Bottom Line

The Great Recession in many ways may not be over, but it prodded corporate giants to think outside the box to not only survive but better position their company for future growth.

The companies profiled above demonstrate that with patience, innovation and an occasional dramatic change, you can overcome a deep recession and see profit even when competitors face extinction. And, of course, a well-placed celebrity endorsement doesn’t hurt either.

This post is from TechMan, WMB co-author who blogs about trends, issues and ideas affecting business, industry, technology and consumers. If you like this post, please share it with family, friends and colleagues!