The cost of developing an app is pretty high nowadays, even if it is a small app. For businesses, the recession is one of the toughest phases of their time. The engagement rate with apps is low, and customer demand for products is limited, resulting in declining growth.
The last global recession happened between 2005 and 2007. There’s no indication that it will happen anytime soon; however, its occurrence is undeniable. Let’s suppose a recession occurs.
So what apps are more likely to survive it? In today’s blog, we’ll explore top smartphone applications likely to strive during a recession and the factors that can bring them a step ahead.
TeamLogic IT app offers consulting services and IT solutions for small businesses. Do you remember the recession of 2007?
When most apps struggled to cope with their customers, their user base was consistent. They overcome that phase without damaging their customer base and business growth. Now the question is – will TeamLogic IT be able to survive another recession?
The IT sector has grown so much to touch $227 in 2022. Moreover, the industry is expected to grow more than 103% by 2023. Also, customers have become highly dependent on newer technologies.
Therefore, companies in this sector generally perform better during a recession than others. Moreover, TeamLogic IT has strong fundamentals. Also, since they have experienced the last recession, their chances of surviving another strike are high.
Everyone knows about Netflix. It’s the world’s biggest media giant. Let’s take you back to the 2007 recession.
What do you think they might have gone through? Like many people, you might also think, “Netflix is a huge brand. It would have survived the recession easily. And since they survived that period, they will survive future recessions too”.
But that’s not the whole reality.
In 2007, Netflix wasn’t a portion of what it’s today. But adapting to innovation helped them control the damage from the recession. Now the interesting thing is – Netflix has become better because of their last encounter with recession.
They have a large team of creative minds and innovators. Plus, their work principles and future plans for the world are crazy. They plan to part with Microsoft around 2023. To conclude, I am sure Netflix will survive the recession pretty conveniently.
The Federal Reserve Conducts a stress test every year to determine how much reserve banks will be left with if subjected to hefty losses. Interestingly, the same test was conducted on Citigroup in 2014, with surprising results.
Citigroup was discovered to be one of the only federal banks to grow their assets ever since the 2007 recession.
This isn’t just a conclusion of a test but a fact.
When other banking apps were struggling, Citigroup grew even in the situation of economic stress. There were two master reasons behind their exceptional growth – they offered premium quality service and worked better on branding than others.
Moreover, currently, their market capital and presence are pretty good. Plus, with their experience, we’re pretty sure they can handle future recessions better than many banks.
Lego is an interesting brand to study, especially when we talk about recession. Many people think that apps related to toys and play centers aren’t really important. Therefore, this industry would suffer miserably in a recession.
But that’s not the case. In the last recession, Lego did what most brands feared to do – EXPAND. They entered the global market, worked on their expansion, and succeeded.
Today, Lego is considered one of the biggest toy brands in the world. Moreover, their smart marketing choices and techniques have made it one of the most profitable apps during the last recession.
The leaders of the company are highly experienced and great minds. In addition, their market capitalization has grown so much in the past few years that it’s hard to imagine struggling during a time of recession.
These were some popular brands whose apps and businesses can easily thrive in a recession. Each one of them has strong business fundamentals; therefore, they are more likely to overcome the recession phase.
If you have any other queries related to the recession, share them with us in the comment section below.
If you have a business idea that is likely to strive during the next recession, consider to start creating a proof of concept. If your proof of concept succeeds, recessions are always periods where opportunities emerge and the market shares are restructured.