Track 2 - Embracing Value, Innovation and Change
Wednesday, 11/11, 11:30 a.m. - Growth Beyond the Downturn
Moderator:
Mark Gaumond, Americas Senior Vice Chair – Markets, Ernst & Young
Panelists:
- Frank Jaehnert, President and CEO, Brady Corporation
- Patrick Lo, Chairman and CEO, NETGEAR
- Adarsh Sarma, Managing Director, Warburg Pincus
- Angela Braly, President and CEO, WellPoint, Inc.
No matter what shape the recovery – or whether it has even begun – entrepreneurs stand ready to steal market share from competitors and capitalize on emerging opportunities.
Participants at the “Growth beyond the downturn” panel discussed external forces that are driving change in their businesses. Angela Braly, President and CEO of WellPoint, Inc., said she's concerned that healthcare reform will increase costs to individuals and businesses. But she's optimistic: “ We're preparing ourselves to deliver great value no matter how the healthcare debate plays out.”
Patrick Lo, Chairman and CEO of NETGEAR, is focused on emerging markets, because that is where economic growth is accelerating. C onsumers in Western countries are more focused on paying down debt, he said.
Frank Jaehnert, President and CEO of Brady Corporation, watches economic indicators, including inflation, the US dollar, and worldwide economic growth. Mostly, “I'm watching out for the players who don't exist today but will be our competitors in three years – the new players, and new business models, that are going to create problems for us in the future.”
To Adarsh Sarma, a Managing Director at Warburg Pincus, it's not all about reigning in expenses. “ You've got to reduce costs, but you must understand the voice of your customer,” he said. “Don't limit investment in R&D. This is the time to steal market share.”
NETGEAR has taken advantage of the downturn. “We use cash to do acquisitions,” said Lo, noting that prices have fallen to attractive levels. NETGEAR has also poached disaffected employees, scooping up engineers, accountants, general managers and others.
Panelists and audience members were asked for their expectations of the economic recovery. About one third (34%) said they believed that the recession has not yet ended. Thirty-one percent expect a double-dip recovery, 27% a v-shaped one, and 7% a U-shaped recovery.
“The world won't end and we're not going to live in caves, but we're not building new homes,” said Sarma. “It'll take time for companies to see top-line growth because consumers are shell-shocked and won't spend freely.”
Lo told the audience the future is in their hands: “Every time we come out of recession, it's because of entrepreneurs.”
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