Companies that may Point to Recovery

There is no question that we are now in a recession and it is a severe one at that. Now the thing people will look for are indicators that the economy is improving. Some companies might provide the signs of when the economy is finally heading in the right direction (according to 247WallSt.com).

Target. The giant retailer is known as one who caters to people who are seeking a little more than what they can get from Walmart. That "little more" includes slightly higher prices (if, for no other reason than the fact that Target cannot buy at the volume of Walmart) and that has led to some economic slowdown for the store. So far Target sales has seen a noted drop this year. When Target begins to see an increase in sales, you might also see a turn around in the economy.

Starbucks. At the height of rapid economic growth, Starbucks was an economic pleasure palace for the happy middle class. However, with declining prosperity, people are bailing out on the coffee shop and many have remorse for the dollars they spent on a small cup of coffee. Part of the problem is plain out saturation. Even after closing hundreds of stores in 2008, I personally know an area in the very affluent Galleria section of Houston that has at least 4 locations in less than a square mile area. When these come back, the economy will be on the mend as well. You will likely see that after a turn around at Target.


CBS. It is now the only major broadcast TV network that largely has all its eggs in one basket (TV). Its competitors -- Fox (which owns radio, print, web platforms, and TV), ABC (Disney World and other entertainment venues), and NBC (whose parent company is GE, which seems to own everything) are far more diversified. The Stock Market has punished CBS' lack of diversification as its shares have dropped. When those shares rise, so will the economy's prospects because this form of broad base advertising is expensive and it will show businesses are believers in the prospects of growth. This too will come a little later in the recovery process, in my opinion.

Dell. The Dell Computer company, which was once considered a leader in its industry, is now considered one of the weakest. In spite of its efforts towards innovation and customization, it still finds itself limping behind. When Dell has a turn around, the economy as a whole will be enjoying serious recovery. Mind you though, Dell was struggling when the economy was fairly strong, so it too may take a while to catch up.

E*Trade. The weakest of the big three online trade companies has been among the longest to suffer. This company, too, is an indicator of how the economy is fairing.

With the current policies of the Obama Administration, it will be surprising to see these (or other businesses) improve. However, when their is a turn around, these five companies will be among those to watch.

Kevin Price is Host of the Price of Business, the longest running show on CNN 650 (M-F at 11 am), AOL Radio, and CBS Radio. Eric Bolling of Fox News and Fox Business says that Price’s Blog “is very influential and moves the blogosphere.” Steve Moore of the Wall Street Journal calls Price the “best business talk show host in the country.” Find out why and visit his blog at www.BizPlusBlog.com and his show site at www.PriceofBusiness.com.

Where are You Spending Your Time?

I am reading a very interesting and useful book to entrepreneurs and business leaders called Always On, about how consumers are taking control of media, marketing, and advertising. The book, by Chrisopher Vollmer with Geoffrey Precourt, boldly asserts that the "thought leaders of Booz Allen Hamilton and strategy + business magazine have collaborated to create an up to minute exploration of this turbulent yet promising new digital era and its implications for corporate executives and marketing and advertising professionals." Its a funny statement coming from a book that praises the far reaching power of the Internet, which is about the only place that is close to "up to the minute" in its ability to keep us informed. Books, including this one, typically have portions that are obsolete before the ink drys. In spite the boldness and the potential inaccuracy, this book is fantastic and I highly recommend it.

The "Media Migration" section of the book shows the shift in where people spend time being entertained or getting information between 2001 and 2006. Here is a breakdown of some of the most interesting numbers:

* There has been an 18 percent decrease in the amount of time people spend listening to music. This is one of the many problems facing the music industry.

* There has been a thirteen percent decrease in the amount of time spent watching broadcast television.

* An 11 percent decrease of time reading a newspaper. This was a surprise to me, I expected it to be a much bigger number.

* A 5 percent decrease of time reading magazines. This is surprising, considering the huge increase in business magazines.

* A 2 percent decrease in time on the radio. Although I know from (HoustonBusinessShow.com), many are going online to hear radio programs.

Where have people moved their attention?

* There has been a 3 percent increase in book readership. This is one of the more startling statistics.

* There has been a 15 percent increase in video game playing.

* There has been a 28 percent increase in cable and satellite viewing.

* There has been a 31 percent increase in home video (much of which shows up online).

* There has been a 41 percent increase in Internet usage. This is no surprise at all.

* There has been a 1,264 percent increase in mobile usage. This was the most startling increase of all. I have a Blackberry and spend a huge amount of time on it now, I must admit. I am not only looking at my email, but surfing for information online, but this is still an amazing number to me. It is a little distorted, since people largely only used their phone for conversation five years ago, but these numbers are significant.

The last figure explains why we are increasingly told on TV, in magazines, and on the radio to not only get additional information on the Internet, but on mobile devices. Smart businesses are certainly focusing their energies on the Internet to attract customers. The smartest ones are figuring out how to reach them via mobile.

This book is a relatively easy read and the information is crucial for those in business who want to compete in our competitive environment today. Order that important book here.

For a copy of the free report, "Why Your Marketing Isn't Working," email Info@HoustonBusinessShow.com and put "marketing" in the subject line.

Kevin Price is Host of the Houston Business Show (M-F at 11 AM on CNN 650) and Publisher of the Houston Business Review. Hear the show live and online at HoustonBusinessShow.com. Visit the archive of past shows here.