How businesses are fighting back against the Coronavirus Pandemic
The Coronavirus is a pandemic that has affected more than 2.5 million people in the world, shutting down entire countries and putting millions into quarantine.
The Coronavirus pandemic is proving to be a tectonic shift for the entire human race. It has rattled our feathers and has established as a wake-up call for people living in the comfort zone. It has reminded businesses that you can never stop innovating and never let your guard down.
Along with health impact, the economic effect of Coronavirus is proving to be a huge blow for various businesses and a major headache for policymakers all over the world.
The Repercussions of COVID-19
The Coronavirus pandemic has proven to be a hard stop for the world economy. With people being forced to stay home due to the fear of the virus, the impact on the global economy is enormous
Impact on different Industries
Let us evaluate the effect of the Coronavirus pandemic on various industries.
The Insurance Industry
The reputation of many insurance companies is going south, as customers realize that their present insurance policies do not cover the impacts of a global pandemic.
In many countries, the premiums of insurance policies are being deferred, and governments are supporting it. It will hurt the bottom line of the insurance companies.
The renowned rating agency, Fitch, has already warned that the Coronavirus pandemic would wallop many life insurance companies. It is because of the double whammy of falling stock markets as well as increased mortality rates. Add to this, the litigation costs that these companies will incur in defending themselves in various courts across the world. It is expected that many litigants will file legal cases against insurance companies for supposedly not honouring their commitments.
We have not even taken into account the payouts that the insurance industry will have to give to their customers for cancelled travel plans.
The Tech Industry
Every year major tech giants like Google, Apple, and Facebook have their tech conferences. Due to the Coronavirus outbreak, the conventions of Google and Facebook have been cancelled. The Mobile World Congress, which was supposed to be held in Barcelona from February 24- 27, was cancelled due to Coronavirus.
On the other hand, companies like Zoom and Slack have reported a surge of interest in their products. Zoom has quickly risen to be one of the most downloaded apps in the world.
Apple has already experienced the supply shortages of its iPhone because the company’s primary supply chain partner, Foxconn, has shut down its production in China.
We can see a potential uptick in the 5G technology adoption rates, as companies realize the need for lightning-fast internet speed. Many companies are facing congestion issues on the prevalent 4G networks, affecting their work from home plans adversely.
Travel and Tourism Industry
By far, the worst affected sector due to the virus is the travel and tourism sector. The World Travel and Tourism Council, which is a trade group representing major global travel companies, has projected that the industry will be poorer by $2.1 trillion, and 75 million people will lose jobs.
With all the major airlines grounded, many airlines are asking employees to take pay cuts to survive. Some airlines like the British airways are taking more extreme steps, and they are expected to fire around 36000 people in the wake of the Coronavirus Pandemic. International Air Traffic Association (IATA), predicts that there will be a $113 trillion revenue loss in 2020, and this was before the USA imposed travel restriction on a number of European nations.
The Las Vegas casinos and its hotels have gone silent, affecting many lives and decreasing millions of dollars of revenues.
The sad part of the tourism industry is that the timing of the Coronavirus was such that it coincided with the peak tourist season in many countries. The cruise line industry also has taken a hit not only in terms of revenue but also on reputation. There were Coronavirus cases in individual cruise ships like the Diamond Princess, which was a cruise liner harboured near Japan. The difficulty that the passengers had to face has impacted the reputation of these cruise liners in a meaningful manner.
The Entertainment Industry
The Entertainment Industry is one of the most severely affected industries in this pandemic. Major theme parks like Disney and Universal Studios have shut down their operations. The NBA, Olympics, and the IPL in India are suspended. Movie Theatres are locked down in many countries to limit the spread of the CoronaVirus.
Production houses like Disney and Sony have delayed their movies. Sony has even gone on to the extent of postponing all its films until 2021.
We, humans, are resilient; we have faced two world wars, countless epidemics which were of epic proportions (Spanish Flu, The Black Death), and many natural disasters.
Industries are fighting back the Coronavirus pandemic in many innovative ways.
Many IT firms realize the benefits of working from home. We can say that IT is one of the least impacted sectors especially the development and software part of the industry from Coronavirus for now at least, as a significant portion of their work is still relatively unaffected. The productivity levels haven’t dropped drastically, and people are working with full commitment.
Due to Coronavirus, we see a sudden surge in demand for certain insurance packages. Companies have come up with special COVID– 19 insurance packages. Insurance companies are putting their hands up and evolving with changing times.
Other entertainment services like online games and video-on-demand services like Netflix have seen a surge in the number of subscribers worldwide. Online gaming companies will benefit from this pandemic, as they will gain many loyal customers.
Major production houses like NBC Universal have decided to release their films digitally on the same day that they are released in movie theatres.
One of the leading global breweries, AB InBev, is using the wasted alcohol after packing and helping in making hand sanitizers.
Many pharma companies like Sanofi and GlaxoSmithKline are joining hands to build the COVID-19 vaccine.
Thus, all industrial sectors are innovating and adapting to survive and thrive in this global pandemic.
What can your company do to stay ahead?
A question plaguing the minds of entrepreneurs and top-level managers is, what can they do now to ensure that their company emerges victorious from this pandemic? Here is our two cents worth of advice.
Brainstorm new ways of doing business
This is the time to think out of the box. If yours is a company that relies heavily on face to face and in-store interaction with clients, you can think about going digital. Having a digital presence will not only expand your business to new geographies, but it will also save you in case of such situations. Approach the professional web development companies, who will help you in drafting the perfect digital strategy to take your business online. Additionally, if you have already have set up the digital presence for your business then it is best that you opt for efficient digital marketing agencies that can help a business build a better presence while the market gets back to normalcy.
Find out new Customers and Leads.
While everybody is focusing on dousing the fire, struggling to maintain normal running operations, you could be the company that thinks ahead of its time and tries to find out new business opportunities. You can put your valuable time and effort in generating new leads. It will ensure that you have a luxurious pool of customers to rely upon, once things have calmed down.
Every problem is an opportunity.
The Coronavirus has disrupted your business, and it has also disrupted the lives of your customers. Ask yourself how your product or service can help your customers sail out of this crisis? Adapt your marketing efforts to reflect this, and you would have improved your brand image and also garnered some additional revenues. For this, you can opt for mobile apps, as Mobile apps have become an essential part of a business in such kind of occasions to stay connected with your customers.
Even if you cannot find how this situation can prove to be beneficial for you, you can always increase your marketing efforts to convey to your customers that your business is open and still going strong. This will increase the confidence of your customers in your industry. Everybody trusts companies that can weather the storm.
China, the country where the pandemic first began, is offering a glimpse into the future. The pandemic being reportedly under control, the restrictions are being lifted. The factories and other businesses are slowly but surely returning to normalcy. We will overcome this, and we will survive the Coronavirus pandemic. Whether it’s business or individuals, humankind is one of the most resilient species on earth. But as Charles Darwin famously said, “Survival of the Fittest”. In this case, the businesses that adapt will be the ones who will see the light of the next decade.