Professor Jorge Sá (PhD Columbia University; MBA Drucker University; Jean Monnet Chair) just gave a talk on:
“Opportunities During Depressions – Lessons from the Subprime and Covid crisis on resilient businesses”
This conference presented five basic facts (based on Eurostat data):
First: during the last (subprime) economic crisis (from 2008 to 2014) some business activities (both industries among 88 of them in the economy and industry segments among a total of 615) were highly resilient;
Second: their resilience was of two types: 1) some kept on growing during the crisis (first type) and other even 2) accelerated their growth (second type).
Third: that happened across the economy. For instance:
Photographic equipment (e.g.) increased its growth year rate from +3,4% (before the subprime crisis: years 2000-2007) to +4,6% (during the subprime crisis: years 2008-2014). But computers and peripheral equipment went downhill from -3,3% to -11,8%.
Also (e.g.) poultry meat augmented from zero growth (before the subprime crisis) to +1,1% (during the crisis), but vegetable juices went from +1,8% to -2,9%. And ice cream from +2,5% to -5%.
Fourth: the data for the Covid crisis year (2020) confirms that the resilient industries and segments are similar to those of the subprime crisis years (2008-2014).
So (fifth), during recessions:
- 5.1. In spite of economic decline;
- 5.2. It is possible for any firm, in any industry, to find safe heavens: resilient businesses to move into, with marketing or/and technical synergy.
The talk was based on Professor Sá’s book “Opportunities during Depressions” (cover, index and back cover below):
Check Professor Sá short bio at: https://www.vasconcellosesa.com/jorge-sa/
For more information on this and other conferences please check our website at: www.vasconcellosesa.com or contact us at associates@vasconcellosesa.com .
