![]() To use the semiconductor industry as an example: most companies have just reported their disappointing Q3 numbers. Texas Instruments reported a 30% drop in net income in Q3. NXP's revenues in Q3 decreased 5.4% compared to Q2 similar to ST Micro's, which reported a 4.9% decline. The numbers are especially daunting as the third quarter is normally the one with the highest revenues and earnings for the year. The outlook for Q4 does not look any better. Both NXP and ST Micro anticipate a sequential drop of 8% or more and Atmel is topping that, estimating a decline of at least 12%. IC Insights has a good article summarizing the 2010-2011 Semiconductor market. The expectation of various market research companies for 2012 is that quarter one, whilst not better than Q4-2011, should be the turning point. Now where did we see this before? Bad times happenThe above looks bad, but independent whether you are in this industry or any other, you will eventually face a bad time. The good news is… and so is your competition! For many frontline people however, the go-with-the-flow attitude prevails unfortunately. Those that refute that behavior may actually find an abundance of opportunities. To stay with semiconductors:
What to doThere is essentially not much difference in selling to customers in bad or good times. The trick is to create a positive atmosphere for yourself and your team and to continue as if times are good. Not paying attention to ‘the downturn’ actually helps you! Here are some practical tips that can guide you and your team in bad times:
Final wordsBringing your products or services to market under bad industrial or economic conditions in essence is not that different from when times are good. The question to ask therefore is why we behave different. Stop paying attention to the negative side of the situation and focus back on the basics of the job. It will get you in a better position compared to competition for now and the future. |
Articles >