Recession-proof? Only if you know how . . .

Yesterday we joined the Xerox investor conference and by coincidence (?) HP also reported their quarterly / annual results on the same day.  These companies are good illustrations of the capabilities of well-positioned companies to perform well even in a difficult economic environment.

Someone may argue that these companies can keep business and positive results rolling because of their size.  But we would argue that HP and XRX are big because they are successful, not the other way around.  In fact, a few years ago nobody would have given XRX any credit for being big.  Their CEO, Anne Mulcahy, put it bluntly:  a few years ago, they were suffering a business model crisis, and size was neither the cause nor the solution.  What is driving their business now is a combination of revitalized execution, strong products, broad sales and service capabilities, and new additional offerings which leverage different aspects of the imaging equation.

In fact, we hear from other smaller companies (for example, dealers and solutions providers) who are doing just fine and are optimistic about their prospects in the current economic climate.  The product offerings and sales approach may need to be adjusted, but the imaging industry always has an angle to offer.  Buy new equipment, they earn; retain and keep using the old equipment, they earn; implement a print management program, optimize the fleet, even go electronic, amazingly they can still earn.  Not all can exploit such opportunities equally, but the opportunities are definitely there.

At the same time, some less than stellar results are getting blamed on the economy, when the real cause can probably be found closer to home: missing offerings, neglected market segments or sales channels, or pure and simple execution discrepancies.

So while we wouldn't really want to say that the imaging industry is essentially recession-proof (but there you go), you can find some good opportunities even in the bad times.  

And while we wouldn't really want to call some companies whiners for blaming the economy (but there you go), it would be prudent to take a closer look at any company's fundamentals and their chosen markets and strategies if this argument arises.  We can think of a few choice examples . . .