PREVAILING DURING THE PERIODS OF ECONOMICAL CRISIS AND RECESSION THROUGH BUSINESS MODEL INNOVATION

Companies trapped in the traditional patterns and unable to keep up with the pace of change cease to exist. The change for a company usually appears as a necessity of a new market or a new technology. In both cases, the change is required to retransform the company to ensure a competative advantage. Another reason for the change is economic recession of markets. There is a consensus among economists on the measures to be taken in economical means during an economic recession and crisis. In this context, these measures include establishing and managing capital structure in a way to cover costs of long term losses and expensive loan payments, avoiding borrowing to finance the losses, being cautious on the use of long-term bank loans only for long-term loan needs, managing stock’s levels efficiently and, if possible, reducing inventories, making savings, changing business model since the current economic conditions may well be very different from the pre-crisis environment, even if the economic crisis is over. There are many companies, in Turkey and in the world, that outlast and increase their market shares and profits through changing their business model in this regard. Serious problems and insurmountable obstacles are considered as a boon for creativity and innovation in business model and in the mean time; innovations are reported as a powerful trigger in times of crisis (Chakravorti, 2010). Jeffrey Fox identifies that companie