Economic Impact of Coronavirus
The past few months have been catastrophic for international business. Experts such as Christian Ellul have suggested various strategies that companies can use to recover from the impacts of the COVID-19 coronavirus pandemic. Most of them focus on coming up with newer plans if a second wave of the virus hits. We have highlighted some of them below.
Getting Ready for Increased Demand
Due to lockdowns and isolation, many international businesses are struggling to get adequate customers. For instance, the California lockdown or as they called it, “The California Stay at Home Order.” They were fast to react and went into lockdown quite quickly. Cases at first were low but they have now seen a rise which is causing a lot of issues. One being their economy.
Therefore, through the months, they have experienced a sharp drop in sales and revenue. Thus, most companies have tried to reduce their production levels and supply as a way of mitigating further a financial crisis.
Though this might be a good strategy, businesses should be careful not to overdo it. While some nations have still not begun to flatten the curve and still have some travel restrictions alongside having to work at home, some countries still seem to be making good progress. These are countries that have started to experience low cases of the virus and have, therefore, started to reopen their economy.
Evaluating the Supply Chain
It is vital that, as a company, you consider analyzing your supply chain. By so doing, you will be able to expose any possible vulnerabilities. This means starting with the most important products and focusing far beyond first and second-tier suppliers all the way to the raw materials. For instance, if you are dealing with products originating from an isolated country, ask yourself whether there is a secondary supply so you can last better long term. The virus might spread, and this would make contingency plans to run into difficulty.
Consider Your Clients
The impacts of COVID-19 have been felt by all companies across the globe, including buyers. Therefore, as an entrepreneur, you must understand how your clients’ needs have changed and how you can provide for them. You need to have an arrangement in place to answer all calls from your clients, regardless of their locations. Note that your customers might need more than just weekends or after-hours call answering. By doing this, you will be able to create rapport with your clients, and they will keep coming for your products or services.
Have New Sales Channels
One of the things that many businesses have learned during massive lockdowns is the need to have many sales channels. Those firms with a single channel like customers coming in for products or services are now struggling to survive the global economic slowdown. In such instances, with weeks and months of lockdowns and quarantine in place, they have little, if not zero, revenue. To gain market strength, international companies must now reinforce tools such as internet and email marketing to reach their clients worldwide.
Get Communication Right
During the pandemic, we have seen many businesses working hard to ensure that their workers are kept informed whilst working from home. Remote working is new to many which is why it is crucial to keep on top of your clients and your employees.
However, there have been many cases of confusion and disinformation spreading with COVID-19. You will learn that your workers will consistently seek reassurance from you that they are safe and that they will not lose their jobs because the business is fully prepared. As a leader, your employees should get the truth from you every time they need clarifications. Therefore, to survive the crisis, it is vital to ensure consistency and accuracy at all times.
The virus has caused a lot of hiccups in the global economy. As a result, many businesses have closed down, with many struggling to survive. Therefore, the best way is to implement the right measures, like the ones mentioned above. No one is sure whether or not there will be a second wave of the virus, which is why there is a need to always ensure that enough resources are put in place, with a solid plan to survive in case it happens.