The impact of corona virus on businesses
Impact of Corona virus (Covid-19):
As it is known worldwide, the impact of Corona Virus (Covid-19) has been negatively affecting most businesses and resulting in slowing down the world economy. The world has been facing now for a while one of the most impactful pandemics which is influencing the way we live and the way we deal with our daily simple tasks. Precautions are necessary in every step we take whether at home or at work.
While the Corona Virus has a negative impact on many industries globally, the self-hygiene and online businesses have been positively affected since they are becoming a necessity due to the pandemic. One of the most negatively affected industries is the travel industry due to the travel restrictions, cities lockdown, and the concern of socializing. This is resulting in an unprecedented crisis for airlines, hotels, and rent-a-car companies.
Another sector that has been severely affected is the Food & Beverage industry, while restaurants, pubs, and nightclubs had to close down their doors to the public among the concern of the spread of the virus. Traditional retail channels have also been negatively affected by consumers shifting to online shopping, a trend expected to continue post Covid-19. Electronics such as laptops, mobiles, and TVs are expected to rise in sales due to the e-learning requirements that were imposed by the pandemic. E-commerce is booming and it is expected to continue in that direction as consumers are making it a habit to shop online.
As companies are trying to remedy to the impact of corona virus (Covid-19), they are taking a series of decisions that could hurt them in the long run and after the crisis has passed. They are trying to reduce costs by laying down employees or giving mandatory unpaid leaves. Consequently, the pandemic is causing waves of layoffs, but also some mergers and acquisitions, in addition to some bankruptcies. However, the businesses that would be able to survive this world crisis will be able to recover fast and grow in the marketplace.
Despite all the changes the pandemic is imposing, we shouldn’t forget that it is temporary with all negatively affected businesses waiting for the promised vaccine to see the light.