Question

By now, you know all bout CORONAVIRUS (COVID-19) as a pandemic threat to the world. COVID-19 has and will have stressful effects on all of us--individually, family,socially, culturally, nationally, economically, technologically, and what not. Given the stressful and dangerous threat, what do you think COVID-19 will have on ECONOMIC manager's decisions--segmentation, product decisions, promotional activities, pricing, supply chain (distribution), and customer relationships. You can use any company that you are familiar with, including the ones you have worked for in the past or currently working, etc. And what do you suggest companies/corporations should to handle COVID-19 effectively and efficiently? organize answer with subheadingsWhat economic impacts do you think that covid-19 would have on the product/company , and what measures would you likely take as a manager/owner of the company .

Answer 1

Economic impacts covid-19 will have on the product/company Apple: Decline in productivity and sales as consumers will increasingly turn price conscious and will cut down discretionary spend. The traditional sales modes will be disrupted with online sales and increase in online marketing to create awareness. Less marginal propensity to consume expensive products and opting for more cheap alternatives or second hand alternatives. Decreased customer reach as employees won't be present physically. Thus customer relationships will suffer which will decline the long term attachment to the company, impacting sales. Plus as increase in income will be marginal, and only highly skilled employees will think of buying the products, the customer reach will narrow and people will try to cut down on such heavy capital expenditure as they will choose to save, looking at how the future pans out.

As a manager/owner of the company: I will try to increase online sales, introduce cheap variants which are affordable and worth the spend, introduce second hand official sales so that the company is able to take advantage of the reused sales. Increase the reliance on monthly repayment schedules so that consumers have enough liquidity on hand. Focus on customer retention by selling accessories more. Customer relationships by focusing on repair and maintenance issues. Increased supply chain distribution by creating contacts and maintaining them in times of such crisis.