The success story of Apple is probably the most well-known example of a successful turnaround strategy. After CEO Steve Jobs left the company in 1985, Apple went into a decade-long downward spiral, as cheaper competing products such as Microsoft Windows took over the personal computer market. A turnaround strategy is essentially a plan to reverse a wrong decision and transform a company from one with losses to one with profits. The “Plan to Win” strategy is an excellent example of how a recovery strategy can help companies facing challenges to reinvent themselves and remain relevant in a rapidly changing market. Kohl's, one of the strongest companies in its sector, still faces many of the same issues as other department stores, including a market that is divided between shoppers looking for value and convenience on one hand, and those seeking luxury and ambitious lifestyles on the other.
Dennis Cantalupo, president of Pulse Ratings, believes that Best Buy's strong cash flows in relation to its debt give it an advantage in achieving a lasting recovery. J. C. Penney, like many department stores and clothing retailers, has been recovering for years.
Target is another example of a company that was already in good financial health and was able to achieve a change of direction thanks to that. According to Cantalupo, retailers need three things to achieve successful recovery: strong cash flows, a solid management team with vision and understanding of what is currently not working and what will work in the future, and a restructuring strategy. A restructuring strategy is a plan to reorganize and revitalize a struggling company or organization. Recovery strategies are plans that companies implement to reverse a decline in performance and improve profitability.