A recessionary economy is different from a booming economy, but we don't stop creating value during a recession. Japan's been in a recession for a decade. And yet companies like DoCoMo Inc. have invented new business designs and created new value for customers in the midst of a stagnant business environment. Right now, we're seeing broad layoffs and conservative decision making. Not at all.
Recessions are hell, but they provide unique strategic opportunities.
Smart companies have demonstrated that it's drastically easier to improve relative position during a downturn. In 1997 in Asia, the economy was terrible, and companies like Cisco Systems and Cemex turned on the heat, magnified investments, and picked up assets for 50 cents on the dollar. They dramatically improved operations. Intel achieved comparable goals in 1991. They can make cuts across the board and hope that this recession ends soon.