Now that the coronavirus epidemic is having a serious negative impact on the economies of many countries, economists are making the most unfavorable forecasts for the future.
However, a number of experts recall that there are examples in history of how companies that emerged during a recession in the economy, eventually managed to succeed and became the strongest players in their industry.
Below we will talk about these companies in more detail.
The company was founded in 1908 during a recession in the economy.
The panic in the financial markets in 1907 led to a recession in the country’s economy, which lasted until 1910. The panic was the result of an earthquake in San Francisco in 1906, as well as speculation that led to the bankruptcy of two brokerage firms.
General Motors was founded in 1908. In the future, the company began to buy various automobile brands, such as Oldsmobile and Cadillac, and in 1918 add the Chevrolet brand to its portfolio.
Today, the cost of General Motors is valued at almost $32 billion. The company employs 164 thousand employees.
The company began operations during a recession which lasted from 1937 to 1938.
This recession began when the world was on the verge of World War II. US GDP fell 10% and unemployment reached nearly 20%.
It was during this period that William Hewlett and David Packard decided to create the Hewlett-Packard. The company officially opened on January 1, 1939. HP later became famous thanks to computers and peripherals.
Today its value is estimated at $22 billion. As of 2019, about 56 thousand employees worked in the company.
The first restaurant opened in the midst of a recession after the Korean War in the 1950s.
The recession lasted from 1953 to 1954 and was caused by a shift in government spending. US GDP at that time fell by 2.2%, while unemployment rose to 6%.
And the first Burger King restaurant was opened in 1953 in Jacksonville, Florida. Initially, the restaurant was called Insta-Burger King. In 1954, the company began to expand opening restaurants in other cities.
According to the company’s website, today 11 million people visit restaurants annually.
The first hotel of the popular chain was opened during the recession of 1957 – 1958. It lasted eight months, during which time GDP fell by 3.7%, and unemployment reached 7.4%.
According to information on the Hyatt website, in 1957, entrepreneur Jay Pritzker bought the Hyatt House Motel, located near Los Angeles International Airport.
Together with his brother, they were engaged in business development, and as a result, the company expanded and became an international powerhouse.
Today Hyatt Hotels Corporation is valued at $5.6 billion. As of 2019, the chain has 913 hotels in different countries of the world.
The company was founded during the oil embargo recession of 1973 – 1975.
At that time, OPEC countries embargoed countries that supported Israel. Oil prices soared, and the stock market was in a state of panic. GDP fell 3.4%, while unemployment rose to 9%.
In 1987, Bill Gates, the founder of the company, at the age of 31 became the youngest billionaire.
Today, Microsoft is valued at $1.3 trillion. The number of company employees is 148,465 people.
The channel began broadcasting during a recession in the 1980s.
The Fed raised interest rates in an attempt to stem inflation, which reached 22% in 1980.
This led to a slowdown in the economy, GDP decreased by more than 2%. The unemployment rate reached 7.8%.
June 1, 1980 began broadcasting around-the-clock news channel Cable News Network or CNN.
As of 2019, the average number of viewers in prime time reaches about 1 million.
This company is a major player in the video game market. EA began operations during the financial crisis of 1981 – 1982.
Then the Fed imposed more stringent restrictions in an attempt to reduce inflation.
GDP fell by 3%, while unemployment rose to 10.8%. The recession was aggravated by the crisis in the global economy, which was primarily associated with the crisis in the energy market.
In 1982, Electronic Arts was established. Later, this company became the market leader in video games and games for video game consoles.
Today, EA is valued at $33 billion, and they employ 9,700 people.
This company came on the scene during the last major financial recession which lasted from 2007 to 2009.
At that time, US GDP fell by 4.3%, and the unemployment rate reached 10%. The recession lasted 18 months.
At that time, there was a collapse in the real estate market, and a crisis in the banking sector led to the failure of many financial institutions. Experts emphasize that the effects of the crisis are felt to this day.
As noted on the company’s website, Uber appeared in March 2009. As of June 2018, passengers used the Uber app for 10 billion trips.
Airbnb is a startup that, like Uber, emerged during the 2007-2009 crisis.
Initially, the idea of creating a website for renting rooms was not very profitable, but by 2019 the company had already reached a value of $31 billion.