Businesses all across the industries have taken a blow, and developing COVID-19 response tactics seems to keep some afloat. Organizations had to restructure their working model and business strategies after experiencing massive losses due to the pandemic. They have mandated work from home, increased cost efficiency, rearranged supply chain management, and applied for government aid to survive. In this article at Sloan Review, Michael Wade and Heidi Bjerkan share three COVID-19 response tactics that can revive your business.
What Are the COVID-19 Response Tactics?
The authors have discovered three COVID-19 response tactics you can leverage. With an agile mindset, you can overcome the business shortcomings with these tips:
Same Product, Varied Channels
One of the COVID-19 response tactics is to sell your products online. You can make a digital prototype and provide services through available technologies. Nike had to close 5,000 out of its 7,000 stores in China, but it continued to engage customers through online workout sessions. Between December 2019 and February 2020, the company experienced 35 percent more online sales than the previous year. Its online business is fast-tracking towards ‘triple-digit growth levels’.
Same Framework, Differing Products
Due to the pandemic, product and service demands have lessened. Empty restaurants and understuffed factories prove that office infrastructure requirement is less. While some of the popular needs are declining, new customer requests are coming up. Some companies are rushing to leverage this opportunity by repurposing their existing infrastructure for modern products or services.
LVMH, Pernod Ricard, and Skyrora shifted gears to making sanitizers when the world was running low on them. GM and Ford have started to utilize their abandoned production lines for medical equipment. Best Western and Hilton are now offering their hotel services to hospital employees and COVID-19 patients in their British branches.
Same Products But Another Infrastructure
Customer demands have shifted online, which made brick-and-mortar companies like clothing brands to move too. Changing the infrastructure from the ground up is easier said than done. However, brands like Amazon have come up with solutions to address the issue. It has partnered up with Lyft and plans to hire a million staff to address the U.S. home delivery service gap. Walmart would recruit 150,000 employees and has set aside $550 million to reward bonuses to the existing ones. Employees of Scandinavian Airlines, Virgin, and EasyJet are training staff to support the U.K. hospitals. McDonald has leased out its employees in Germany to help Aldi manage its growing grocery shopping service demands.
Questions to Be Proactive:
Organizations have seen the consequences of being reactive. So, here are questions to build proactive COVID-19 response tactics:
- ‘Can we offer a version of our products and/or services through an online channel?
- Can we use our existing infrastructure to produce products and/or offer services that are in demand?
- How can we rapidly increase our capacity to produce and distribute products and/or services?’
To view the original article in full, visit the following link: https://sloanreview.mit.edu/article/three-proactive-response-strategies-to-covid-19-business-challenges/