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There are a lot of predictions regarding which businesses will survive the “bust” brought about by the recession and which ones will not. Difficult economic times usually act as a “business accelerant” that forces business operating at the margin over the cliff.
One of the businesses most often identified as being in trouble are the newspaper and magazines. The costs associated with producing their product is relatively high. Paper, ink, printing press equipment and relatively high labor costs have all contributed to their profitability problem, but the Internet has been the main culprit for their demise. There is so much free information on the Internet that is accessible in seconds that it is hard to compete with it via alternate media. Many of the newspapers and magazines have seen the light and started to transition their businesses to an Internet model.
Another example of a business in trouble is the pay phone business. Just about everyone is carrying around one or more cell phones. It’s tough to get into a car with another person and not have 2 phones at your disposal, yours and your passenger’s. When you consider just how cheap cell phones are becoming, with disposable phones and by-the-month plans, it’s hard to believe that there will be much use for the pay phone in the next few years.
How about some easy ones. . Television antenna manufacturers, arcades and the CRT Tube manufacturers. It’s hard to believe that antenna manufacturers will not be in trouble as we now transition to digital TV, and CRT’s have been on their way out for some time and there are few manufacturers still around. The prediction that arcade games are less popular since home gaming systems have improved is hard to argue with.
The recession has gone beyond causing the closure of real estate agencies, mortgage brokers and title insurance companies. I have seen the closure of many high-end food establishments as the recession has progressed. There are fewer $ 10 a Sundae ice cream stores, fewer $ 35 per steak restaurants and it seems to me that even branded restaurants with marginal locations are closing their doors. So it’s not just the businesses that have lost out because of modernization, changing trends and the real estate debacle, there are many meat and potatoes business that are also failing.
Survival of a business in the current economic climate has to do with consumer preferences. That’s why places like Wal-Mart and MacDonald’s are thriving. They are relatively cheap, well located, branded and offer necessity items (food and clothing).
Popularity: 29% [?]
There are several examples of newspapers going down in recent times.
An example of a business doing well in these times, is the Canadian company Campbell’s Soup. They produce cost-effective comfort food that’s historically done well in recessions.
Nice
Hmm… Honestly I’ve never thought about it until now when I’ve read this… As for me you really can’t tell who’ll survive..
I think the business that provides the “needs” of the baby boomers will survive
Sound like you are putting your money on the drug manufactureres, hospitals and nursing homes.
On the way I see it, restaurant businesses are what’s going to survive at these kind of times. Food is a necessity so of course there will always be customers.
I’m sure some of them will survive, but I have seen many already close their doors here in Vegas. The trendy steak restaurants, high-end ice cream and we have even had several Starbucks close in town. Most surprising was the announcement that they are closing several grocery stores.
I never really thought this would happen to Las Vegas even with this kind of economy. Its always full of life but not now.
By the way I agree with jayson. At times like these I think necessity sure is the name of the game in business. Like what you mentioned about how news papers & magazine business are falling, I mean you wouldn’t it of course if you don’t need it. Specially now that, yeah, you can read these articles on the internet.
I also agree with mitzirecio that the businesses that provides the needs of the boomers will survive. Yeah admin was right. These are the drug manufacturers, hospitals and nursing homes
Like gyanlee. Even I was shocked when I’ve heard about what happened to Las Vegas. It was the hub fr people who wants to enjoy themselves. Now its lonely there because of the economic crises.
The funny thing is that the massive overbuilding that happened in Las Vegas has slammed prices down so low that we may again be heading for a time when Vegas will look cheap to buyers. The average home is down to $ 149,000 from about $ 345,000 and the prices are still falling. The recession has not affected everyone uniformly, and there are people out there already taking advantage. You are right, however, about the overall economy . . that probably won’t turn until the national economy turns (whenever that may be).
“Who will survive?” Regarding business evolution, they said that food business is the top priority to thinking of a kind of business to put up. It may be true considering that this is the first basic need of human. From a simple potato turns into yummy potato fries with cheesy bacon and mushrooms. Well, I think if you just know how to adopt new environment or changes from the thread and learn to acquire it for developing more, know the current needs of the people and statistic rates of the economy. By adjusting to every aspects of the business and every aspects of the individual, you will survive, we will survive.
Speaking of business evolution, I hear the anecdote that when the emission laws were going to be passed, the US auto companies hired lawyers, while the Japanese companies hired engineers.
I don’t know how literally true that is, but I think it underscores two very different approaches.
There are lots of existing business today. Living in the modern technology is not the reason to lost business. We could still do a business with this, like our cellular phones we need load to make a call and text to anybody. We can have an E-loading business. What do you think?
I’m not sure what an e-loading business is, maybe you can explain that one. There is no doubt that cell phones and other wireless business will continue to thrive and evolve.
E-loading business is selling a load using your cellular phone. There are some cellphone users that are not using a postpaid card. You can sell a load to them through e-loading. By just giving their mobile number to you and they’ll pay you the amount, then you’ll send the load to them. You can start you business here, it’s very easy. Cool?
i think as we become more highly develop in terms of technology its expected that some business will be affected..but i think it can be reverse if they will adjust to what is in demand in the market..
Technology has its own advantages and disadvantages, do you agree? For me, all kinds of business may continue to exist. However, in the long run, businesses involving food, medicines, communication and others that deal with the basic necessity of a person would most likely to survive.
I’ve seen some of restaurants that going closed though food is a basic need for every individual.Some may continue to boom but not all.
Customers play an important role as to the survival of a business. If you don’t have customers, that would end up closing the establishment, right? I guess, food, clothing and communication businesses will survive in the future.
Business evolution is closing linked with technology evolution and businesses change their shape and identity with newer technology. I do not consider it as death of a business but look it as a change in response to the new innovations and market needs.
You got it right, millionaireman. I hardly believed that those basic needs you’ve mentioned above are true. However, recently we encountered slowdown of this business today, but we still have to think positive of about this, that in the future it will still survives.