Introduction
COVID-19 has forced companies to adopt and enhance information technology systems to stay competitive in business and economic environments. As many people work from home during the pandemic, digital systems are essential to handle professional tasks and ensure business survival. Additionally, many firms have utilized technology to meet the demands of clients who have moved to online systems for shopping (Nah & Siau, 2020). Besides, technology maximizes a company’s productivity by improving innovation performance, making operations easy and speedy, reducing human errors, and improving productivity. This paper examines how technology has influenced the survival and failure of businesses during the pandemic by comparing two companies.
Levi Strauss company
Levi Strauss company based in San Francisco has significantly increased sales since it embraced digital services. The most prominent global leader in jeans has applied technology to attract more customers and increase profits. The company changed its strategy after realizing the transformation of customer purchasing behavior during the pandemic. Investments in digital technologies allowed Levi Strauss to react and survive as customers switched to e-commerce channels effectively. The company launched a mobile app to enhance its connection and engagement with consumers at home (McKinsy Digital, 2020). Also, it enhanced delivery services by launching curbside pickup in U.S based stores to respond to online orders in time, which attracted many clients leading to a profit boost.
Escada America company
Escada America, a women’s fashion retailer company, has been struggling to survive in a competitive market for the past few months as it filed for Chapter 11 bankruptcy in Jan this year. Escada America has failed to invest sufficiently in the technology required to create and maintain online functionality during the COVID-19 pandemic. Besides, poor technology has contributed to the company’s mismanagement, which has left it less equipped to endure the pandemic impacts. Furthermore, it has failed to provide shoppers with great online shopping experiences, which has pushed customers to other competitive stores. Additionally, the lack of a secure e-commerce platform has reduced their online services, thus frustrating customers.
Moreover, by enhancing technology in Levi’s company, the business has a considerable advantage over other companies which have not shifted digital. Besides, having an effective digital tool in business strategy contributes to the company’s growth by reducing costs, promoting a brand, and ensuring quality customer service. Levi Strauss has a great connection and interaction with the consumers, which has gained them more loyal clients. On the contrary, the lack of technology resources in Escada America has pushed the firm to bankruptcy. Escada is still struggling to channel its digital ambition, contributing to poor business management and productivity.
Conclusion
The pandemic has left many businesses struggling to survive in the current competitive economic environment. However, some companies that have utilized technology have remained in business today. Technology has a positive effect on business by changing the face of a company, allowing people to work from home, reducing costs, improving brand awareness, enhancing productivity, and ensuring clients satisfaction. Technology helps a company run smoothly and reach many customers who have turned to online channels for purchases. A company with an effective technology model like Levi Strauss has a greater chance of surviving the effects of COVID-19 and maintaining its leading position.
References
Evans, C. (2020). The coronavirus crisis and the technology sector. Business Economics, 55(4), 253-266.
García-Madurga, M. A., Grilló-Méndez, A. J., & Morte-Nadal, T. (2021). The adaptation of companies to the COVID reality: a systematic review. Retos Revista de Ciencias de la Administración y Economía, 11(21), 55-70.
Nah, F. F. H., & Siau, K. (2020, July). Covid-19 pandemic–role of technology in transforming business to the new normal. In International Conference on Human-Computer Interaction (pp. 585-600). Springer, Cham.
McKinsy Digital. (2020). How six companies are using technology and data to transform themselves. https://www.mckinsey.com/business-functions/mckinsey-digital/our-insights/how-six-companies-are-using-technology-and-data-to-transform-themselves
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