Exploiting the Economic Downturn

1329 WordsJan 11, 20185 Pages
Exploiting the economic downturn Recession is defined as the economic slowdown or decline characterized by slowing down of trade, a magnitude decline in the GDP, and a decrease in employment usually lasting between 6months to a year. This was the situation in the USA the hardest times being from 2008 through 2009 and the early months of 2010. America is still recovering from the effects of the recession that the country experienced from 2007 to 2009. The slow down in economy triggered a massive job loss and unemployment rates that shot through the roof, the prices went up and a great deal of uncertainty rippled through the country. This situation has now seen a reverse trend albeit at a slower rate than was expected by many. The unemployment rate in November 2011 fell by 0.4% to 8.6% unemployment as the nonfarm payroll employment climbed by 120,000. Niche or "hit items"? Varying companies respond differently to recessions within the economy and one of them is the concentration in the niche of the particular business. Williamson P. & Zeng M. (2009) define a niche as that small section of clients to a company that are willing to pay a premium price for goods as well a services that are custom made to suit their peculiar requirements. Such companies do not check to see if there are several other customers locked out of their goods and services due to the high price and the customized nature of their goods as well as the less value for money. On the other hand, the 'hit
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