Very interesting report on the Deloitte’s website into cost cutting by Fortune 1000 companies. Because of the global turndown, Deloitte started surveying these companies in order to see how they were behaving and performing. There most recent report has found that, whereas before cost reduction strategies were being carried out in response to a decline in demand, this year the main drivers are different. Companies are seeing this as a way to establish or reinforce their competitive position, and/or to finance their growth strategy.
This does not mean that all firms will now be competing on a low cost strategy, but it does mean that operations across all functions of the business will have to be lean and mean.