During a downturn it is easy to make the mistake of fixating on dangers. As a result managers may miss out on the many opportunities that can arise during volatile times.
By Donald Sull

In the midst of a downturn, most managers focus on the bad news : demand is down, prices are falling, credit is scarce and layoffs are likely. However, worr ying about threats obscures a surprising but crucial truth – the worst times for the economy can be the best for individual firms to create long-term value.

In previous downturns, some firms, such as Toyota, Nokia, Cisco, Samsung and Emirates Airline, emerged from economic crises stronger than when they entered. Like the ancient Greek wrestler Antaeus who gained strength when thrown to the ground, these companies derived strength from hard times.

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