Business strategies during recession: retail sector

Abstract

A contraction in an economy's business cycle slows down the economic activity of a country which when persists longer than two consecutive periods, results in negative economic growth marking a recession. The implications and consequences of a recession are not just confined to those two quarters but are extended to a larger time frame. In addition to the macroeconomic factors such as employment, GDP and interest rates, even social and behavioural repercussions come into play such as reduced spending, significant losses, job insecurities, and even bankruptcies. This paper explores the competitive strategies essential for companies post the recession, segmented into two buckets-sustainable strategies (BCG Model) and competitive strategies (Michael Porter) and then further analyses them through a case study of Big Bazaar (Indian retail company) and explains how those strategies were implemented by Big Bazaar resulting in them sailing through a recession.