Companies Use Recession to Stomp Hurting Competition

By Kevin Spak,  Newser Staff
Posted Aug 25, 2009 9:37 AM CDT
Companies Use Recession to Stomp Hurting Competition
In this May 31, 2008 file photo, a woman enters a Linens 'N Things store in Glendale, Calif.   (AP Photo/Reed Saxon, file)

When the recession hit, Bed Bath & Beyond saw an opportunity. Chief competitor Linens ‘n Things was laden with debt, so Bed Bath & Beyond “decided to destroy them,” says one analyst. It matched every Linens’ discount, issued a barrage of coupons in Linens’ key markets, and, sure enough, Linens soon went bust. It's one of several canny, cutthroat companies that saw the recession as a chance to grab market share from wounded competitors, the Wall Street Journal reports.

Ford gained share by touting its self-reliance as its rivals filed government-backed bankruptcies. Builder Toll Brothers, which stopped buying land during the bubble years, is now scooping it up at a discount. New York Life, flush with cash and stable, no-nonsense insurance policies, boosted its advertising budget 24% to tout its financial strength, and swiftly blew past AIG, Hartford, and Lincoln National. “This is a crazy environment,” says its president, but “we’re built for times like these.” (Read more market share stories.)

We use cookies. By Clicking "OK" or any content on this site, you agree to allow cookies to be placed. Read more in our privacy policy.
Get the news faster.
Tap to install our app.
Install the Newser News app
in two easy steps:
1. Tap in your navigation bar.
2. Tap to Add to Home Screen.