Lemmings and the mind of crowds

We just got back from a fun few days in Madrid where we had a good dose of both high and low culture. Unfortunately on the drive down we were too busy checking out the sunset to notice the Madrid exit and were a good way to Oviedo before realising our mistake.

Everywhere you go now it is impossible to escape a discussion about 'the crisis'. It seems like our collective conviction that we are in for some fiscal punishment to expurgate the sins of our over-consumption will become a self fulfilling prophecy and only exacerbate the situation.

In a professional context, businesses dramatically cutting their investment, staff and marketing spend helps to ensure that the downturn will be deeper and more prolonged than it may otherwise have been. In this environment fortune favours the brave - many successful businesses have been started in downturns when market gaps were left open by the larger players and investment opportunities are beginning to abound.

We hear talk of clients cutting their advertising expenditure - understandable given the current climate - but at the same time a course that can carry a heavy opportunity cost. In many markets competitors significantly cutting their marketing activity creates a rare opportunity to attack and gain market presence and market share. A recent Wharton article examines some of the implications of these scenarios and the opportunities that arise.

As a side note it was good to see a local wine, Martin Codax, nominated as the best imported white wine in Australia. This could seem a bit like sending ice to the Eskimos but the personality and Atlantic flavours of Albariño wines are a refreshing alternative to Australia's traditional Rieslings and Chardonnays.

As our sojourn in Madrid reminded me, a change is as good as...