The global coronavirus pandemic is causing crisis around the world and the costs, both human and economic, are high. During this time of turmoil, the businesses that are staying afloat best are those that already had a multi-sided platform business model, or those that have been quick to adapt to one.
At this stage in the pandemic, there is more uncertainty than there are hard facts, and no-one yet knows when it will end or what the final toll will be. People are consuming in vastly different ways than before and seeking out products using a different set of values and priorities. Those businesses that are most likely to survive the crisis are those that understand this shifting paradigm and are able to update their strategies accordingly.
Nilesh Waghela worked for many years as a small business consultant, providing expert independent advice on business strategy. In these unprecedented times, unprecedented strategies are called for.
The embedded infographic looks at the economic effect of the COVID-19 outbreak on retail in the UK so far.
Systemic Risk
At the current rate of infection internationally, it looks as if businesses will be battling the challenges posed by COVID-19 for many months to come. Adapting business strategy to ride this wave is essential for those businesses that want to stay afloat. However, so is creating strategies for renewal and growth once the crisis is over.
This crisis escalated due to systemic risk in almost every area of life, contaminating systems in healthcare, politics, business, society and the economy. The embedded short video provides a definition of systemic risk.
As technology advances at a rapid pace, our global systems become ever more complex, leaving many business owners and management teams lacking a full understanding of the systemic risks to their business. Systemic change does not just affect one area of business, but every area of business.
New plans are therefore required that can adjust the entire business model quickly and effectively. Most businesses leaders have risk management plans that can be implemented to rescue one area that may be struggling to meet challenges, but few are prepared to respond to the current threat with a full business overhaul.
Changing Consumer Needs
Necessary government-imposed restrictions and wholesale business closures in many industry sectors have resulted in higher numbers of people than ever before in recent history suffering financially.
Unemployment rates are rising exponentially, consumer confidence is low, and household incomes are reduced. Consumers are therefore shifting their own priorities towards essential rather than luxury items and price is becoming the most important factor to a large percentage of the population.
A multi-sided platform facilitates meeting this demand, either by promoting existing product lines or adding new offerings. This also creates opportunities to connect with customers and provide the best service possible, which can help increase consumer confidence in the brand.
Humanising the Digital Experience
With large swathes of the global population being told to stay at home as much as possible, there has been a natural shift towards increased online shopping activity. As people are also feeling increasingly isolated, it is essential that online businesses humanise the shopping experience as much as possible.
People are looking online not only for the products they need, but also to make the connections that are currently denied to them in their physical lives. Businesses that understand this – and deliver a personalised service that acknowledges how people are feeling – may find that their sales continue to rise.
The PDF attachment provides a series of tips for humanising the digital experience for consumers.
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