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Trend to Watch: Industries Taking New Shape

Great Blog Post on new trends as a result of the recession and global economy. Check it out!

-DF

Trend to Watch: Industries Taking New Shape

3:55 PM Monday July 13, 2009
by Eric Beinhocker & Elizabeth Stephenson

Tags:Economy, Recession, Strategy

Authors’ note: Each week in July and August, we’ll introduce a new trend you have to watch from our HBR article in the July-August special issue. We also invite you to comment on this trend and suggest what trends you think you have to watch.

People often equate downturn with slowdown, but for many trends, a downturn can be anything but a slowdown. In particular, industry structures change more during recessionary periods than in periods of prosperity and growth. One only need look at that fateful week last September when the entire investment banking industry upended to see an example of just how fast an industry can shift shape. Similarly, the speed with which GM passed through bankruptcy shows just how quickly an old stalwart can fall–and be reborn in entirely new form.

Yet, it is not just the news makers: other industries are making big moves too. Big pharma, for example, has gone through a spate of mergers this year. Cisco explicitly raised capital to help take advantage of buying opportunities during the downturn.

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Written by David Frederick

July 30, 2009 at 4:44 PM

Posted in Business, Economics, General

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