How companies save themselves during Corona
Three examples of company pivot to save revenue
The Corona crisis is hitting companies har, especially small service companies like hairdressers, cafés and other stores. Not to mention everything related to the tourism industry.
In Denmark, some companies have managed to Pivot their services to reduce the financial damage from the Coronavirus.
Example 1 — Changing channel
The Danish store, Søstrene Grene, opened for business in 1973 and has since then been known for selling all kinds of Knick-knacks at low prices (Between 1 and 5 dollars).
They also sell more expensive stuff like cheap furniture and some foodstuff as well. The store has moved internationally and has more than 180 stores around the world.
During the Corona crisis, they launched their first webshop going online for the first time since opening in 1973. In truth, the webshop has been planned before the Corona crisis but the launch timing was so great that the shop overheated as locked-up customers started shopping in throngs.
Many fitness companies have done the same and started online subscriptions on live fitness programs online during the day. These programs can help sustain them while all their centers are closed for business.
Moving your business online is a great strategy during a time like this, even for a store known for inspirational Knick-knacks. The impact is yet to be seen though.
Example 2 — Repurposing products & Services
Several hotels in the Copenhagen area has repurposed their rooms from the classic overnight stay to a mini office in isolation.
The conference hotel Bautahøj was quick to start advertising their rooms as offices where people needing a break from family obligations could go and work for the day without interruptions and still being in quarantine from other people.
They reduced room prices and started small campaigns on SoMe to attract office workers needing some time and space. International hotel chain Clarion soon followed suit.
Many restaurants have tried moving from classic table services to take-away to retain some revenue. With an existing market of take-away, this is a challenge but may save some revenue.
Repurposing your product or production capabilities to fit the emerging needs in a crisis shows great agility and creativity and can be vital in retaining some revenue during a lockdown.
Example 3-Repurposing production
Early during the crisis, people started hoarding not only toilet paper but even more hand rubbing alcohol. That made a few quick-thinking companies to change their production from Juice, Cocktails, and hand creme to producing rubbing alcohol instead.
One of these companies is a har liquor producer, that saw the potential on Wednesday and started producing on Thursday.
More than 10 companies (That counts for something in small Denmark) switched to rubbing alcohol within the first week of Corona lock-down. Other companies are starting to produce visors for healthcare professionals as the need has increased tremendously.
They quickly saw a great need in the market and managed to pivot their production facilities to meet the new needs in the market to save both revenue and jobs in their companies.
The Corona crisis and lockdown of the country will be hard on many businesses and even with great financial support from the government, it will be tuff times.
The companies that manage to pivot and retain a business will not only have a greater chance of survival but may come out with new products and services to grow their business in the future.
A pivot can come in many shapes and forms, consider how you can
- Change your sales and delivery channels
- Repurpose your products to fit new needs
- Repurpose your production to meet new demands
How are you using the crisis to pivot your company?
This article was originally published by Oliver Brunchmann on medium.