The World Bank says that the global economy may be facing its most massive contraction since the Second World War. The massive amount of job cuts in line with the slowing of the US economy has made one fact obvious. Businesses facing this dire situation have had to adapt or face their demise.
The Core elements needed to pivot successfully
1. Understand a pandemic-fueled trend
Because people have changed how they work, play, and shop, the only way a pivot would be successful is to consider the new trends in these areas. Remote work, along with an increased dependence on technology due to social distancing, provides ample opportunity to businesses who want to find new, exciting ways to capitalize on their market. Companies have shifted to using online storefronts and mobile apps to interact with customers. Those that embrace this new digital lifestyle stand to outpace their competition that is patiently waiting for physical meeting spaces to reopen.
2. Extend the company's existing business model
Successful pivoting doesn't rely on entering a brand new space. Some companies are associated with doing certain things. Prada, for example, is known for making fashionable accessories. If a company needs to be successful in their pivot, they should look at related areas to their primary product. Prada's new line of designer face masks shows that they leveraged their brand awareness to produce a viable product that appeals to a post-pandemic world.
3. Pivots must be profitable and sustainable
If a business intends to pivot, it needs to be both profitable and sustainable. The product or service the company offers must preserve and enhance brand value, and encourage customers to buy into the new idea. Over time, the business will be able to switch over from its initial profit generation business model into a new one that's sustainable over the long term in a Covid-affected world.
Times of crisis tend to favor small businesses that can change their configurations quickly. Larger businesses that have to go through layers of bureaucracy tend to be much slower when they have to change. Pivoting allows a company to redirect itself while maintaining its momentum. During this pandemic, it's the most effective method of ensuring that a business remains profitable over the long term.
A source
1. Understand a pandemic-fueled trend
Because people have changed how they work, play, and shop, the only way a pivot would be successful is to consider the new trends in these areas. Remote work, along with an increased dependence on technology due to social distancing, provides ample opportunity to businesses who want to find new, exciting ways to capitalize on their market. Companies have shifted to using online storefronts and mobile apps to interact with customers. Those that embrace this new digital lifestyle stand to outpace their competition that is patiently waiting for physical meeting spaces to reopen.
2. Extend the company's existing business model
Successful pivoting doesn't rely on entering a brand new space. Some companies are associated with doing certain things. Prada, for example, is known for making fashionable accessories. If a company needs to be successful in their pivot, they should look at related areas to their primary product. Prada's new line of designer face masks shows that they leveraged their brand awareness to produce a viable product that appeals to a post-pandemic world.
3. Pivots must be profitable and sustainable
If a business intends to pivot, it needs to be both profitable and sustainable. The product or service the company offers must preserve and enhance brand value, and encourage customers to buy into the new idea. Over time, the business will be able to switch over from its initial profit generation business model into a new one that's sustainable over the long term in a Covid-affected world.
Times of crisis tend to favor small businesses that can change their configurations quickly. Larger businesses that have to go through layers of bureaucracy tend to be much slower when they have to change. Pivoting allows a company to redirect itself while maintaining its momentum. During this pandemic, it's the most effective method of ensuring that a business remains profitable over the long term.
A source
