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Blue Sky

Rising corporate debt looms threateningly around the world, and highly leveraged firms rightly focus on maintaining liquidity. Often it takes more than cutting costs to stay afloat, however. Companies in this predicament must also revisit key strategies – in particular, product marketing. Financial distress scares customers, and if customers go away, revenues dry up, and liquidity concerns can quickly become cash flow crises.

Although Management 101 suggests that corporations should differentiate their products from competitors&#39 offerings and erect barriers to switching once a customer is on board, we believe the better strategic choice for distressed companies is to undifferentiate their products, so that it is easier for customers who feel nervous about the company&#39s future to switch or replace their product with those from another maker.

Customers see risk in buying from companies they think have a chance of going under. Indeed, when a company is perceived to be unstable, a product&#39s uniqueness may be just the reason a company loses customers and market share.Extract from Undifferentiate Your Way out of Debt by Gyöngyi Lóránth, a research fellow at the London Business School, and Stefan Arping, assistant professor of finance at the University of Amsterdam


BMS aims to show how online services can help

BM Solutions has launched its &#39Owl&#39 campaign, which aims to highlight the role of online services in meeting the compliance burden The company says it is one of the few lenders in the market to have announced its plan to offer a fully compliant and guaranteed KFIs. The campaign, which includes advertising and direct mail […]

Savills sells UK&#39s largest mortgage

Savills Private Finance has overtaken Chase De Vere Mortgage Management as the broker behind the largest-ever mortgage arranged in the UK – a staggering £15.2m deal. The loan, arranged by Savills&#39 managing director Mark Harris, was taken out by an unnamed foreign businessman on a five-storey property in plush Belgravia in central London. Chase De […]

OneSearch Direct completes record 350,000 local searches over year

Electronic local search provider OneSearch Direct has completed a record 350,000 local searches over the last year, as it celebrates the first birthday of its nationwide service in England. Backed by 3i and HBOS, OneSearch Direct says it is now the largest private supplier of local searches in the UK and the company is anticipating […]

Premier Mortgage Service facility is still available

From John MaloneIn a recent article, Richard Griffiths questioned the Premier Mortgage Service proposition in the changing mortgage market (Mortgage Strategy May 24) . I would like to reassure all your readers – and our many users – that the traditional Premier Mortgage Service facility i.e. yellow label and procuration fee direct payment, is very […]


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