But savvy executives may try to continue innovating through a slowdown to avoid crimping long-term growth. It's very hard to gain market position in a boom because everybody is adding capacity and spending, but in a downturn, companies have more chance to distinguish themselves,'' said Adrian Slywotzky, a vice president at Mercer Management Consulting. Businesses that solve a problem, or create products and services to fill needs people didn't have before, gain an enormous edge over rivals. That's a recipe Intel Corp., the Santa Clara, Calif., chip maker, is following. Demand for Intel products has been weak in recent months.
Profits are down sharply.
Competition and slumping orders are forcing Intel to lower prices. Its stock price has dropped substantially. Meanwhile, Intel is selectively paring other costs. It plans to cut about 5,000 jobs through attrition from its roster of 90,000 workers over the next nine months. An effort to give every employee a home computer is on hold.