- 20 March 2020
- Posted by: badamowicz
- Category: News
The current impact of the coronary virus pandemic on the situation of entrepreneurs
At present, the prevailing coronovirus has limited people-to-people contacts to the necessary minimum, which has made it difficult to provide such services. At the moment the most suffer industries: tourism, catering, entertainment, fitness clubs / sports clubs, recreation centers and passenger transport. It causes the expiration of the current level of activity or its abandonment. This results in the dismissal of some or most employees, which translates into an increase in unemployment. The situation also affects almost the same way the associates of such companies and we get an almost unstoppable chain reaction. Large companies sent their employees to paid and in some cases unpaid leaves.
The biggest problems will concern those companies that have already struggled with financial problems before, and the current situation will only aggravate this situation. It is primarily about the unplanned absence of a large number of employees, or the shortage of products, especially goods imported from Italy and the whole of Asia.
Where has the demand increased?
Although many entrepreneurs have to come to terms with huge losses caused by a pandemic, others earn on these changes and very high sums, all you have to do is look at the largest companies in the e-commerce industry. And this is not about a food niche (which is also now experiencing a real siege, similarly to farmers), only companies like Amazon (in Poland, e.g. Allegro), which can boast of a recent increase in earnings. Governments in many countries around the world recommend or even order citizens to stay at home, shopping malls are closed, so they have online shopping for five minutes, and thus transport their items. I’m talking about forwarding and postal companies. InPost and its Parcel Lockers are doing the best in Poland right now. At present, there is such occupancy that parcels are delivered even with a few days’ slip.
The sale of medicines and medical equipment is also growing. As a result of a pandemic, the demand for anti-influenza drugs, disinfectants and masks is huge and is constantly increasing. In extreme situations, patients stand in queues to the pharmacy to buy them up to several hours. Often, however, they do not get some products because wholesalers do not make deliveries. In this situation, companies that manufacture disposable medical equipment can seize the opportunity associated with increased demand caused by the current global situation.
The demand for streaming portals like Netflix or HBO GO also increased. In the era of quarantine and spending time at home, the most commonly used method of spending time is a movie or favorite series, even console games. Companies providing this type of entertainment cannot exceptionally complain about the difficult period. They even need to enlarge servers, increase service efficiency, prepare promotions and special packages.
In the next part of the series of articles on the impact of coronovirus on entrepreneurs, we will present the opportunities that open to businesses at this time, how consumers behave and what actions should be adopted to improve their situation in this difficult time on the market. We invite you to read. The article is available here!