The coronavirus (otherwise called COVID-19) has now been recorded in excess of 100 nations and domains. Businesses are facing significant and unique challenges as the coronavirus keeps on unleashing devastation on business sectors and enterprises around the globe. Successful navigation of these challenges will require thoughtful and comprehensive planning.
Wuhan, which is the epicenter of the latest coronavirus is considered as an important manufacturing center in China and around the globe. The spread of the virus has impacted other manufacturing hubs leading to an impact on the global economy and supply chains in ways not seen since the SARS outbreak in 2003 or even in the 2008’s recession.
This whole situation impacted every company in a different manner. For example, companies like Netflix, Disney and other content providers including the gaming industry are flooded with some unexpected number of customers whereas the retail industry and tech companies already suffered a lot. Let’s consider these impacts one at a time
1. SUPPLY CHAIN DISTRIBUTION
Most companies decided to close some of their manufacturing plants and offices in order to reduce their costs leading with limited productivity for the first quarter of this year. While many companies depend on china, the technology industry has been hit especially hard with production delays of smartphones, laptops, smart speakers and more. Big-box retailers like Best Buy are not working at their full capacity because of the pandemic. I have worked for a cellphone company for almost 2 years and therefore I can imagine the situation especially in the Canadian market where the sales were already low because of the increased monthly rates since the fall of 2019.
If supply chains around the world continue to break down, all product supplies are going to be dramatically decreased. If the supply chains continue to break in the current flow, all product and equipment supplies going to be decreased significantly and as the pandemic calms down, this will affect the economies as 60-70% of North America’s GDP is related to consumer purchasing.
2. Industry Capabilities
Most of the tech companies employees are working remotely leading to test their workforce capabilities. This for sure creates greater stress on the VPN networks and conference call systems for whom this has been really good so far. Companies like Zoom and Skype are being widely used even for distance education. The major problem lies with low-scale companies and new startups as they might now be prepared and will face the challenge of upgrading their technology in an effort to relieve some stress. Also, Cyber-Security is something that may need more attention at this point where the majority of the companies are operating remotely. At this point, versatility of operating systems comes into the vision and lot of companies are already trying to develop some operating systems for future and unify the way we interact with our devices to reduce security risks. I have been working remotely since the state of emergency was declared here in Canada and this is a bit overwhelming for me being a first work term Coop student. According to my experience so far, I can say that the efficiency of the workforce does decrease up to a certain extent.
3. Cancelled Tech Conferences
Some gatherings around the globe have implemented additional safety precautions, such as hosting the event virtually, while others have been called off or moved to a later date. Most remarkably, Mobile World Congress (MWC), which was set to happen February 24-27 in Barcelona, was dropped because of worries over the infection. MWC is an important event in the connectivity industry as it brings together the most important companies in the space to network, share innovations, and forge new business partnerships.
Beyond MWC, Facebook dropped its F8 Developer Conference and Global Marketing Summit, Google moved its Google Cloud Next occasion to online-just, and IBM similarly needed to Livestream its designer’s meeting, which a year ago facilitated more than 30,000 participants. Through and through, the undoing of significant tech occasions has brought about over $1 billion in direct financial-economic losses, as per estimates from PredictHQ referred to by Recode.
With the leading number of cases, coronavirus can leave a greater impact on our economy. Governments across the world are trying their best to find an antidote and hoping this to end soon with everyone coming back to their lifestyles. Also, corona virus