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In a downturn, companies should capitalize on the cost levers at their disposal. For many, that means focusing a higher level of attention on strategic, structural improvements such as streamlining their infrastructure, adjusting their service delivery model, and redesigning their business model. These types of improvements can generally deliver cost savings that are both larger and more sustainable than an incremental approach to cost-cutting. Strategic, structural cost improvements can position a company to prosper during a downturn by helping it protect its margins, capitalize on opportunities, and capture market share.
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