MIT Sloan Management Review Article on To Cut Costs, Know Your Customer
- 4m
- Roger Best, Shrihari Sridhar, Vikas Mittal
- MIT Sloan Management Review
- 2020
The economic disruptions caused by the ongoing pandemic are forcing myriad decisions on CEOs of B2B companies. Often, the most pressing decisions are whether and how to cut costs.
As in business downturns past, some CEOs are implementing across-the-board salary cuts and widespread furloughs, while others are taking a more piecemeal approach — renegotiating vendor contracts; trimming underperforming products, regions, and divisions; and shifting to lower-cost sales channels. Our research shows that both of these approaches can be misguided.
A more effective cost-cutting strategy should begin — and end — with customer focus.
About the Author
Vikas Mittal is the J. Hugh Liedtke Professor of Marketing at the Jones Graduate School of Business at Rice University. Shrihari Sridhar is the Joe Foster ’56 Chair in Business Leadership and professor of marketing at Mays Business School at Texas A&M University. Roger Best is professor emeritus of marketing at the Lundquist College of Business and cofounder of the Sports Product Management Program at the University of Oregon. They are coauthors of the seventh edition of Market-Based Management (forthcoming).
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MIT Sloan Management Review Article on To Cut Costs, Know Your Customer
