All the key industries across the globe are presently dealing with the distressing impacts of coronavirus. From manufacturing to advertising, 2020 has drastically changed the way companies operate due to the fatal pandemic.
In this blog, we’ll take a look at the impact of COVID-19 on businesses and how companies are pivoting to survive through this critical time.
How COVID-19 Has Impacted Businesses
It’s indisputable that COVID-19 has destructively impacted companies all over the world. However, a number of companies still believe that the adverse influence of coronavirus will be short-term.
According to a survey, only 28% of respondents are anticipating a lasting adverse influence while 65% are anticipating a short-term adverse influence on their company.
Here’s how COVID-19 has impacted businesses all over the world:
Since the beginning of 2020, businesses have been facing a sharp decline in their revenues because of the rapid spread of coronavirus. This substantial decline in revenue is having a trickle-down influence on the economy as businesses are struggling to modify their approaches in preparation for a financial recession.
From shutting down production and operations to a decline in customer spending, COVID-19 continues to influence companies and the way they work. As a result, many business leaders are forecasting that an economic downturn will be the ultimate consequence.
This is because the government has imposed serious restrictions and there is a constant health risk to customers, especially in main urban areas. Many countries are likely to bear the maximum personal financial effect as individuals continue to observe social distancing measures and travel bans.
Shift Toward Remote Work
With government restrictions in place and the closure of non-essential services, several corporations have adopted remote working model to make sure that COVID-19 doesn’t spread within their company while they can continue operations routinely.
Transition To Online Business
COVID-19 has forced businesses to embrace technology to switch online. Many cities have some form of lockdown in place and the risk of another round of shutdowns looms as coronavirus cases increase in some regions.
As per the US Chamber of Commerce, nearly one-fifth of small businesses reported having to temporarily shut down since the pandemic began. As a result, most of these businesses have transitioned to the digital world in order to keep them afloat.
How Companies Are Pivoting During COVID-19
COVID-19 has considerably influenced the way companies operate across several industries. That’s why many business owners are developing new plans and policies to prepare for a post-COVID world.
Source: Roland Berger
Many organizations are already equipped for an extension in long-term remote work circumstances in case there’s another movement restraint by the government. Moreover, several companies are also concentrating on business continuity planning (BCP) and scenario planning to cope possible risks from a second or third wave of coronavirus.
Apart from remote working, many companies have also decided to suspend business events and activities to decrease social contact.
In a nutshell, preparation will be important in a post-COVID world and companies are already taking measures to assimilate initiatives, like improved work-from-home (WFH) abilities, and steps to decrease the adverse influences of major plagues.
COVID-19 has forced many major industries all over the world to face the worst financial recession in recent years. Yet, there is some light at the end of the tunnel as business leaders and entrepreneurs are hopeful that once the dust settles on coronavirus, companies and customers will quickly get back to normal.
Get in touch with Skison Digital Consultants to know how we can help your business bounce back successfully.