.Under the wrath of the coronavirus pandemic, companies are forced to rethink everything from their management to their business models. Whether a company should start pivoting its business is no longer the question. The question is, how can we pivot our of this Covid-19 crisis successfully?
According to Harvard Business Review, there are 3 key considerations we need to look at when pivoting a business:
- A pivot must align the firm
- A pivot must be a lateral extension of the firm’s existing capabilities
- Pivots must offer a sustainable path to profitability
(one that preserves and enhances brand value in the minds of consumers)
In times of great change, the CEO of the company will need to transform into the Chief Learning Officer. They will need to learn about the market, customer, product, its impact on people as fast and as much as they can. Additionally, find new problems to solve, and identify collaborative opportunities along with the potential risks that come with it. Let us look at some successful cases where companies have pivoted in the right direction to kickstart some ideas for your business.
Companies who repurposed their assets:
Commercial airline company offers cargo flights
With an unprecedented drop in commercial passengers, Lufthansa has canceled up to 90% of their scheduled flights. Hence, they have converted their flights into cargo-only flights. Using the empty passenger cabins to transport much-needed items like groceries and healthcare provisions.
Hotel offering Day Rates For WFH Employees
While many employees who are working from home are running out of space and patience, on the other hand, hotels are nearly empty. As a result, Hamilton Hotel started offering day rates for remote workers, and it comes with a bag of breakfast goodies and a Keurig coffeemaker with unlimited pods.
From B2B to B2C:
Brewery company shifts from B2B sales to B2C
Trouble Brewing kicked off looking to the business-to-business (B2B) route, selling primarily to bars, restaurants, and hotels directly. But when pandemic hits and circuit breaker starts, their team leaped into action immediately to change their business model from an offline B2B brewery to an online B2C direct sales business. By offering same-day home delivery, their orders have increased to more than 200 within the first 48 hours.
Fitness and entertainment companies turn to live-streaming
Fitness and Entertainment industries had to find ways to pivot their way out of the COVID 19 crisis. MMA Gyms are live-streaming exercise classes and releasing at-home workout plans. Entertainment night club Zouk has also launched Zouk Digital. Likewise, they have moved their DJ sets to online streaming live from their DJs’ homes.
The COVID-19 pandemic has changed how businesses everywhere operate. Undergoing a digital transformation and pivoting to a new direction could be the only way for many companies to sustain their business. Since the circuit breaker, consumer behaviour is starting to change as well. As more people get used to shopping online, we need to start thinking about our online presence. How can we ease the consumers’ journey throughout our website for a more enjoyable shopping experience to keep them coming back? At Marqqee Digital, our Branding and Digital Marketing powerpack is the perfect launching pad for businesses who are looking to pivot their business out of the Covid-19 crisis. Click here to find out more about us and how we can help you to target your new audience.
Related article: Digital Transformation – Get On Board Or Get Left Behind