Business Intelligence

A Time To Harvest: This Could Be The Time To Cut R&D And Marketing

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Executive Summary

"At the M Planet Conference in late January, Anne Mulcahy, Chairman and CEO of Xerox Corporation, remarked that this is the time to invest in R&D. Wharton Professor of Marketing David Reibstein, also a speaker at the marketing conference in Orlando, disagrees. ""If this is the time to invest in R&D, when is the time to harvest?"" he asks. ""Now more than ever, I would think this would be the time for harvesting."" Reibstein concedes, however, that some of resources for R&D may be cheaper in this environment, which could provide an advantage. On the other hand, to address immediate cash flow, this could be the best time for some companies to throttle back on R&D and even on marketing investments, says Reibstein, who is academic co-director of Wharton's Competitive Marketing Strategy program and on the faculty of the Essentials of Marketing program."

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