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International Business And Unprecedented Trends During COVID-19 Pandemic – OpEd

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The COVID-19 pandemic has taken its toll on every walk of life. The dynamics of society as well as business, have changed beyond recognition. While the resultant upheaval has meant catastrophe at the international level for most of the business, it has also produced an ideal environment for other businesses to thrive in.  Products (like petroleum) are witnessing record negative prices, making the associated multinational companies suffer huge financial losses. On the contrary, the prices of gold are predicted to be doubled if the situation prevails. 

Now that the social life across the globe has changed drastically, people are exploring new means of fighting boredom during the lockdown. This has had a tremendous impact on the entertainment industry. For instance, the cable operators are suffering losses as the number of subscribers has nosedived in recent months.

But, at the same time, digital streaming services like Netflix and Disney plus are making the most of the situation. Netflix’s subscription has increased by 16 million in three months, making its total subscription of 183 million. In comparison to the initial three months’ profit ($344 million) in 2019 the profit of the initial three months in 2020 is $709 million, which doubles the profit of the previous year making total revenue of $5.07 billion. Experts believe that the time till sports are banned the viewers will suspend their cable services and, therefore, the pandemic is making Netflix a popular streaming device.

A single documentary “Tiger King” is watched by more than 64 million households. Similarly, Disney Plus being one of the competitors of Netflix is also excelling at a faster pace and its subscribers have become doubled since February 2020 making the total number of subscribers to 50 million. Disney plus has taken 5 months to reach the number of its subscribers to that level while Netflix has taken 7 years to initially reach a subscriber number to 50 million. 

Likewise, chain store businesses are suffering huge losses because of product expiry but e-commerce and online selling platforms are making huge sales and profit. As per the business experts, nowadays Amazon is selling products at a rate of $10000 per second. To meet the increasing demands of its customers, Amazon is planning to hire more than 75000 new staff, which will take the Amazon workforce to a million people while the other businesses and companies are laying off their employees. Amid the global pandemic, Amazon shares rise to 42%, reaching a value of $2400 per share and the net worth of amazon has reached nearly $1 trillion. The wealth of Jeff Bezos, the CEO of Amazon has grown by $24 billion, bringing his net worth to $143.1 billion, nearly $40 billion higher than the second-place Bill Gates, and is almost twice that of Warren Buffett. 

Moreover, the travel industry is incurring huge losses during this pandemic. Airlines such as British & Jet Airways (British), Delta & South West Airways (US), Air China, and Korean Airways are facing huge financial losses daily due to the pandemic.

The vehicle industry is no exception as well, but on the contrary, the cycling manufacturing industry is enjoying this extreme situation and the cycles are selling like toilet papers in Australia. Due to the increasing use of bicycles the people in Australia have requested their government to extend the passages for cycles on the roads in the country. An extra shift has also been introduced for the employees related to the bicycle sales. Even on weekdays, there is a sale of the bicycle ranging from $10000 to $40000. This increase in the use and sale of bicycles is just because of the pandemic helping to fulfill the requirements for social distancing as well as keeping a balance in exercise during the lockdown.

The story doesn’t end here. Many of the multinational companies are introducing a new product range in their existing businesses. LVMH, a French multinational corporation specializing in luxury goods has announced to convert three of its perfume manufacturing facilities where it normally makes fragrances for its Christian Dior, Givenchy, and Guerlain brands to make hand sanitizer instead.

Similarly, a newfound need for ventilators has made interesting partnerships among the medical device makers and car manufacturers. Ford, General Motors (GM), and Tesla are making ventilators to fight Covid-19. With such moves, these multinational companies are aiming to achieve several things. Responding to a shortage of hand sanitizer and ventilators on one hand while on the other hand, they are successfully positioning their selves to both of their consumers and employees as doing what’s in the public interest. By reacting to these trends, the multinational companies are justifying the continuation of operations. All of those things are helping to make their image being more purposeful and less commercial. 

Could anyone, in their wildest dreams, have predicted such a gigantic change in business trends? Well, its anybody’s guess! For now, all we can say is that when nature dances, everything dances along.

References:

  1. https://www.forbes.com/sites/richardkestenbaum/2020/03/15/lvmh-converting-its-perfume-factories-to-make-hand-sanitizer/#63ad6e604a9a.
  2. https://web.facebook.com/GeoUrduDotTv/videos/664735020984620/.
  3. https://www.vox.com/recode/2020/4/10/21209709/tesla-gm-ford-ventilators-coronavirus.
  4. https://qz.com/1841031/coronavirus-secures-amazons-jeff-bezos-as-worlds-richest-person/.

*Dr. Abdul Latif is working as an “Assistant Professor” at the Department of Management Sciences, Abbottabad University of Sciences and Technology (AUST) Pakistan, and has a decade- long experience in teaching and research at the university level. He earned his Ph.D. Degree from School of Management, Zhejiang University, China. He can be reached at [email protected]


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9 thoughts on “International Business And Unprecedented Trends During COVID-19 Pandemic – OpEd

  • Avatar
    April 26, 2020 at 12:39 pm
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    Very informative article on the changing trends of world trade. One another industry garment industry also changes from designer clothing to word medical clothing PPE s.
    Where This virus put a negative impact on alot of industries at the same time there is also an opportunity for some business to grow

    Reply
    • Avatar
      June 4, 2020 at 1:20 pm
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      First of all Thanks alot ! Sir
      for letting in our knowledge by such fruitfull info about the Novel COVID 19 which now becomes a Global Pendamic .
      Your Research & Reviews in Mentioned article help us to sight in those trends that miricaly got the edge of Rising sun and seek the opertunity floating in external environment of domestic market as well as in Global market amid COVID19. In the Era of Worldwide business the novel Crona virus causes many crises which result heavy unemployment rate as well as poverty ratio also stands high worldwide on Contrary this Pendamic also provide Gold digging opertunity for Digital Businesses all these things switches dynamically so we can conclude that in this Dynamic World where things are happening quickly we must adaptive and pro active for Change in our business and we have to stay updated about the trends happening around us as there is always an Opertunity behind Every Problem .

      Talking about the trends that appears in this situation i observed are from different sectors. As global Pendamic compelled peoples for maintaining social distance meanwhile peoples are finding their means to stay connected with their Dear ones through smartphones which increases the Usage of different applications like Facebook, Instagram, WhatsApp etc. Avoiding boredom young Generation after Kids diverting towards Online Mobile Games, Tencent Games with PUBG brand got record users which are Millions in figures. Apart from this as Novel Covid 19 brutally impact Transport industry including local transport which faces strick lockdown in whole world. Online transport services like cream Ubber took great advantage of the situation . Beside these many businesses who are primarily directly deals people are upgrading their system to provide access to the customer at their doors local stores of goods and services are shifting their panel toward online and home Delivery services.

      Awais Rashid your obedient student From Mgt Sciences Aust

      Reply
  • Avatar
    June 3, 2020 at 3:38 pm
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    Also the Covid-19 lockdowns have boosted user engagement with video games and esports. Revenues for many gaming companies and platforms have increased during the pandemic. The pandemic is accelerating existing trends within the gaming industry. Instead of outdoor games, the children and young ones are locked at home and bored of course. The schools, colleges and universities are off or some taking online classes as well but to kill the time, people prefer video games or mobile gaming. With the practice of social distancing, reducing consumer and business activity to a minimum, gaming offers an engaging distraction for people at home looking for social interaction and initial data shows huge growth in playing time and sales since the lockdown began.

    Reply
  • Avatar
    June 3, 2020 at 9:34 pm
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    International Business

    This article gives us the very good overview of current pandemic situation in which we are facing a great human loss and the economy of every suffering country ha fallen .
    In such situation the international businesses are facing a great trouble and some of them had avail this opportunity and they have made there a businesses a great success.

    Explanation

    The business firms which were making beverages item and food items with some expiry dates has experienced a great loss because in the situation of pandemic no one was able to get out of homes and people were not interested in eating from outside due to COVID19 on the other hand the firms which were giving services had a great experience of succes they avail the opportunity they made things and delivered them to the door step of people online shopping mals online food items services online apps who give entertainment opportunities online apps for games have earned a great number of customers and followers .

    Examples

    The suffering businesses

    1. The shopping malls
    2. The food items hubs
    3. The cars showrooms
    4. The sports complexes
    5. The cable operators
    6. All industries (sports , cotton ,)
    7. The transportation services
    8. The parking services
    9. The private education services(schools .colleges .universities)
    10. The tution academy’s

    The new trends successful businesses

    1. online shopping malls
    2. The internet services
    3. Digital businesses
    4. Entertainment apps (tiktok ,youtube ,instagram, Twitter)
    5. Online food items services
    6. Online mobile accessories
    7. Daraz
    8. Ali baba
    9. Amazon
    10. Private clinics for checkups of patients

    Reply
  • Avatar
    June 4, 2020 at 9:23 am
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    The article you wrote gives a good over view of current ongoing problems caused by covid-19 and the hurdles faced by organisation due to lockdown but some business flourished during lockdown.

    As we know the world wide problems of unemployment and the economy of many country’s are on the edge of collapse but some business got the opportunity to do the record growth such as digital marketing and online service providers.

    The clothing brands faced many hurdles because no one wants to go outside for shopping due to the current paramagnetic everyone wants to get their desire products on their door steps so the online business got the focus of consumer and the brands that provide online deliveries make huge amount of profit.
    Due to social distancing people connect with their loved ones through social apps such as Facebook, WhatsApp, IMO etc
    Students who are unable attend university’s now take classes online through Zoom app and Skype etc
    By looking on your research the transport industry faces hurdles becomes of serious lockdown situation and if they follow the Sops they face huge loss and the online service like Uber and Creem took the advantage of the situation and make record profit.
    Due to lockdown people get struck at home and to avoid boredom they watch online moves and seasons and subscribe to Netflix and amazon etc and kids play online games like fortnite and PubG these online services provider make a huge some of profit and cashed the current situation into their favour..

    Reply
  • Avatar
    June 4, 2020 at 5:29 pm
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    Due to this virus a huge change is observed in the world business .this virus affect all countries with all aspect of business like small or huge. During virus those business will earn huge profit those who provide online service or online facilities and other business will suffer loss. It is observed that a lot of hotels and restaurant are closed due to 19 covid even if they are open people don t want to go out due to disease . during this pandemic disease people rely on home delivery services . so emerging company in Pakistan FOOD PANDA seem to grow due to their food home delivery service.

    Reply
  • Avatar
    June 4, 2020 at 6:18 pm
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    This new virus puts a huge and gigantic impact on the business locally as well as across the borders one of the big reason for this big change is that this disease is very new for the world and its ability to spread very fast
    By reading that article I become to know that due to this pandemic business suffers a lot and as mentioned a lot of business which were leading the list suffer a lot like petroleum industry, tourism industry, manufacturing and construction industry and a lot more but with this some business like Amazon(online store), Netflix(online entertainment application) flourished, due to change in buying behavior of customer
    What I thing is that trend in international business will change in future as doctors and WHO said that “we have to live with this Disease”. So now many Business will try to go online As online shopping increases one another business will flourish is home delivery and courier services, the companies which produce medical equipment ( PPEs , Ventilators and other equipment) will grow

    Reply
  • Avatar
    June 5, 2020 at 9:07 am
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    Due to this covid-19 all international bussiness are distrub in the world but some business are growth.In this article read some business are grow to this virus and some business are fall down.some business like Amazon(online store), Netflix online shopping malls,Online mobile accessories,Daraz,Ali baba,flourished, due to change in buying behavior of customer but some business are fall down due to this virus like petroleum industry, tourism industry, shoping malls, university’s, Hotels etc

    Reply
  • Avatar
    June 5, 2020 at 8:07 pm
    Permalink

    An informative article that tells us that every problem have an opportunity in this pandemic Covid-19 situation although this is worse condition after world War-11 but as a business student after reading this article i come to the point that digital business is best opportunity for entrepreneur to develop a digital business.
    As Covid-19 has already become a reason for closing the multiple businesses and closure of supermarkets which seems empty nowadays. Therefore, many economists have fear and predicted that the pandemic could lead to inflation.

    Reply

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