Are there crisis sustainable business (models)? part I

global_financial_crisisIn 2008 we learn that the top 10 of Fortune 500 companies Energy represents 60% of the ranking, the Car industry 20%, Banking 10% (ING) and Retail 10% (Wal-mart on number 1). How would the ranking nowadays look like in February 2009? Who is going to replace the position of the Car and Banking industry?  

Take a look at the industries now during financial crisis. Are there any crisis sustainable models to find? In the Energy industry we see Exxon and Chevron boosted there revenues. Maybe as a result of the oil barrel price going down from 147 to 35 in 4 months time. In the Industrials Cargill reports profits whereas BASF and Sabic cut costs sharply. Aviation is hit strongly for Boeing and Airbus after cancellation of orders. No need to talk about the Car industry. All carmakers – if still exist – cut costs. Fiat mentioned 2008 as their toughest year ever.

In Transport Iberia sees her profits go down by 90% while Easyjet sees more and more passengers. Easyjet is taking measures as the board has an internal conflict about their strategy. Sir Stelios wants to limit the expansion of the airline’s fleet to a minimum in the face of the deepening recession.

P&G  (Retail & Consumer) sees their first loss since 2001. P&G is exploring the web as a new strategy. Starbucks is cutting costs and closing stores. Is this a result of the crisis or also coffee sold through new competitor McDonalds? WSJ online reports it is not easy for McDonalds to sell coffee as consumers prefer to make coffee at home now and franchisees are not willing to invest USD 100k on infrastructure. Still McDonalds is a winner. Like Wal-Mart, McDonald’s has been one of those companies that has proven itself resilient despite our ongoing and serious recession. And of course, it’s obvious both companies appeal to consumers because they provide wares for those on tight budgets. Amazon, the world’s largest online retailer, saw its shares jump more than 10 per cent as it announced quarterly sales that outperformed both its bricks-and-mortar competitors and the US e-commerce sector as a whole.

In Transport Airlines see a drop of 22% in cargo. Fedex is reporting a downturn in revenue as well as Singapore harbour. The business model of the successful Somalia Pirates is also questioned now as more and more vessels find protection from different countries. 😉

This short journey along the industries show that there are sustainable models. Tendency towards the lower priced products. However, in the same industries we see out performers (!) with better business models eg. Exxon (!) vs. Shell, McDonalds (!) vs Burger King, Amazon (!) vs. Ebay, Easyjet (!) vs. KLM. 

To be continued traveling through other industries next week… as Motorola, Cisco and Walt Disney will come with their figures…