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Impact Of Covid-19 on Businesses and Opportunity Spaces During Covid-19

Hit by Covid-19, crowded roads leading up to locked factories have become a common sight in India. Businesses apart from those manufacturing and selling essential commodities have been temporarily shut to prevent the spread of Covid-19. A large number of businesses are facing losses due to the situation prevailing around the globe. No matter how established the businesses are, they are having to re-look at how will they manage and operate their businesses and the reality is that it is spreading quickly. According to Johns Hopkins dashboard, it looks like COVID-19 is here to stay longer and affect us deeper than what we are ready to accept.


 With 40,263 confirmed cases in India, as on May 03,2020, the effect of this lockdown will have a key impact on India’s economy, as all business sectors are getting affected. Small and medium enterprises (SMEs) and multinational companies (MNCs) are suffering. Goods have been stranded at ports for weeks, consumers are resorting to panic shopping, there is a strain on global supply chains, unemployment rates have hit a record high and the financial markets have been disrupted. The hospitality and travel industries have been damaged brutally the most, thanks to travel cancellations, closure of restaurants and bars and lower consumer confidence.  Experts are hinting at recession. Investors fear that the Covid-19 will destroy the economic growth and the government actions will be not be enough to stop the decline.

However, several companies are not silently watching the show but are rapidly adjusting to the changing needs and stretched their brands, reshuffled their production lines and catered to new needs of the consumers. Covid-19 has forced the businesses to operate in new ways for the new needs. For example, LVMH switching from producing perfume to making hand sanitizer. 

In this current crisis situation, the biggest challenge is the demand peak in daily demand for consumables such as Personal Protective Equipment (PPE kits), respirator masks, gowns and swabs. A Kearney analysis estimates a demand surge of about 1,600 percent for masks. Companies are repurposing their R&D capabilities and production lines to support the fight against COVID-19. For example, industrial companies are making face masks, luxury hotels are turning into quarantine centers, distilleries are creating disinfecting alcohol and automotive companies are evaluating options to produce medical devices such as ventilators. Repurposing helps in protecting their own workforce while keeping operations running for as long as possible. This means that their production lines will keep on running even in the times of low demand and generate moderate revenue while keeping a positive reputation.

We made a list of opportunity spaces where the companies can divert their production line in this hour of need :

  1. The FMCG sector is shining in these rough times – producing fresh groceries and meat, cold storage spaces, efficient delivery of the same is helping the 
  2. Healthcare and health technology – pharmaceuticals, medical devices, personal protective equipment (PPE), quarantine centers, online consultations, self-diagnosing medical devices – the demand for these medical supplies is on rise given the current situation. Companies have repurposed their production lines to meet the new needs.
  3. Entertainment – gaming industry, generating new content, promoting small businesses, online cooking classes, online painting sessions – new online games, online platforms for conducting online sessions, online streaming platforms are booming.
  4. Education – virtual classes – education and knowledge is being provided virtually currently and thus, this sector is also shining.
  5. Fitness  – online fitness and wellness classes are conducted online.
  6. Service industry – enhanced delivery services, remote banking services, too, are needed in today’s scenario.
  7. Software platforms and cloud-based services for workplaces – once the world economy goes into post-COVID-19 recovery mode, employers would want to keep their office costs in check and this will open up many opportunities across multiple sectors such as building remote work systems, software platforms and cloud-based services. These sectors will see a significant rise.

If there is single takeaway from this crisis that has impacted businesses all over the world, it is to have a clear understanding of disaster recovery. Companies should always have their disaster recovery plans in place. Businesses who come out of a crisis situation are the ones who have planned for worst-case scenarios. It helps in thinking-on-feet and making quick, effective and fruitful decisions in the favor of the company and it’s workforce.