The Coronavirus has led us to re-evaluate our behaviours and habits, particularly when it comes to the business world. Activities that were once considered the norm are now being viewed under a new light.
Companies around the globe have been forced to shut down to minimize human contact and curb the infection rate. The question is, how are specific companies going to be impacted by the Coronavirus?
Coronavirus Business Winners and Losers
There are three categories to distinguish between:
- The winners – industries that will benefit
- The losers – industries that will suffer
- The middlemen – industries that are stuck in the middle
The Winners
The winners will benefit from this pandemic, and could even come out higher than before. Companies in this sector only need to apply basic levels of competence to prosper. Additionally, they should take an aggressive approach by investing in new business opportunities and promoting growth.
Ecommerce
Due to the increased number of people sitting at home, online shopping is seeing a massive boom. Giants like Amazon have even filled 100,000 new positions due to the demand. Smaller companies, who were unprepared for this sudden surge, have had to temporarily halt new orders to clear their backlog.
Entertainment Platforms
Video streaming services such as Netflix and Amazon Prime have reported higher views and are more popular than ever before. Online gaming platforms, like online casinos, are also experiencing a spike in demand.
Since land-based casinos are closed, players are flocking to satisfy their gaming urges in record numbers. Our gaming expert, Michelle H. Thomas, says that Canadian free slots at casinos are the top go-to, along with live dealer games like roulette and blackjack.
The Losers
The losers are going to suffer the most through this crisis. Even if these businesses manage to stay afloat, they’ll experience a lot of financial damage and strain. This warrants a cautious approach that includes cutting costs, ceasing risky operations, and preparing for the future when conditions stabilize.
Tourism
Social distancing rules currently prohibit non-essential travel, which means the tourism sector is starting to suffer. The US Travel Association projects that approximately five million jobs in the travel industry will be lost due to the Coronavirus. The situation is bleak across the globe, with European ski resorts closed for the entire season.
Retail
The need for typical retail stores to remain open is gone, as people aren’t allowed to venture outside their homes. Malls, boutiques, and specialty shops have been closed for weeks and will require many months to recover. Grocery stores and pharmacies are the only exceptions, as they are considered essential.
The Middlemen
The middlemen have a serious decision to make. If they continue without adopting any changes, they may fail. But, if they evolve their business model to suit the current climate, they can succeed. At the very least, they’ll have a solid foundation for the future.
Banking
Many individuals and businesses alike will struggle to pay off their debts, and the banks will be directly impacted. However, they can accommodate for these events by offering assistance to at-risk customers, and forming good relationships with new clients.
Manufacturing
Manufacturing companies may struggle to keep their head above water as their products decrease in demand. However, more adaptable businesses can capitalize on this by offering different products that fit the needs of the current climate. For example, BYD, a Chinese vehicle manufacturer, has started new production lines for items like hand sanitizers.
Conclusion
The Coronavirus crisis is going to impact every industry in some form. The way that each business decides to respond will be the determining factor in its future success. Industries that can adapt their business model to suit the evolving needs of consumers will benefit a lot, while those that sit back and do nothing will suffer. It’s vital to keep a fresh outlook and be open to change in order to come out on top as a business against the impact of the Coronavirus.
