The “Winners of the Low Touch Economy” report details how society and the economy have changed due to Covid-19. Low-touch encounters, health and safety regulations, novel consumer habits, and long-term structural changes in key industries are all hallmarks of this period. The report details how businesses may rebound and expand in the face of the new normal. The era of low-contact commerce is sure to last. It provides previously unimagined opportunities for pioneers to take risks immediately. In addition, the paper guides how to expand and prosper in the corporate world after the COVID-19 pandemic, taking into account the intensity and length of the economic effect on the firm based on the industry you operate in.
Critical Issues
One of the most critical aspects of this study is the restrictions and measures that people and companies must adhere to during this pandemic. As a result of these restrictions and measurements, consumption patterns and how businesses conduct their operations have changed. Because of this, businesses have been compelled to modify their business models. They may do so by adjusting to the new normal while maintaining the same market share and commodities, or they might explore potential markets while trying different services and goods.
The shifting habits and expectations of customers are another critical matter. While before the epidemic, a customer may have been interested in purchasing a vehicle, now that they can work from home without the need for transportation, their priorities may have moved to purchase a treadmill for use in their house because gyms are closed. E-commerce, such as purchasing things online, will become the new normal, including e-therapy and e-services, in my view, after consumers begin behaving in a new manner for a length of time and they adjust and continue doing so in light of the epidemic (De Ridder & De Mey, 2020).
Additionally, businesses struggling to connect with their customers today should take note of this trend and rethink their strategies accordingly. This requires an analysis of changing consumer habits and the development of new strategies for reaching today’s consumers. Organizations came up with the phrase “Low Touch Economy” to describe the new business environment in which face-to-face contact between workers and customers is limited. The term “Low Touch Economy” encompasses a wide range of restrictions, including but not limited to travel prohibitions, limits on big gatherings, isolation of vulnerable populations, and more (De Ridder & De Mey, 2020). There will be much upheaval in the Low Touch Economy age. Fast change is required of organizations.
Businesses need to be able to foresee what is likely to happen and have a series of scenarios ready to be performed based on the internal and external aspects of their organization, as well as microeconomics, and a time frame is the third most critical component to consider. Companies that will be successful in this period will be the ones that modify their business strategies so that they can deal with the many health measures and other problems that Covid-19 brings. As a result of the immediate closure of brick-and-mortar businesses caused by Covid-19, Shopify was able to assist large corporations in making the transition to online sales rapidly and successfully.
Notably, Many Shopify retail shop clients have moved their sales online using the company’s curbside pickup or delivery alternatives. Panera Bread swiftly adjusted its business strategy in response to the Covid-19 problem by implementing several new ideas. They established a partnership with the digital channel Grubhub the previous summer, enabling them to offer cashless delivery in less an hour. Additionally, the restaurant began offering pickup service at the curb.
Lessons Learned
One important thing that I have realized is that nothing stays the same for very long and that everything, including people and businesses, must be willing to adapt to new circumstances. This has been seen over many years with the development of the internet and many streaming service providers. This time, however, people have faced the problem of adjusting to a pandemic. I feel they must search for opportunities rather than focusing on the negative aspects of the situation and how they might prevent more harm. Instead, everyone has to consider the possibilities and prepare for the next step to stay one step ahead of our rivals.
Another essential lesson to be learned is the significance of being well-prepared. While it is true that no one could have foreseen the occurrence of this pandemic, I can guarantee you that in the future, enterprises will be ready for even the most catastrophic events; they will have a strategy in place to deal with any contingency, be it a war, an invasion by aliens, or something else entirely. This will force people to be prepared and to constantly think about the next step of what is next; as a result, they will be able to stay one step ahead of whatever is going to happen and will be able to anticipate it.
Another essential insight is that a new routine will emerge since many things will not return to how they were in the past. Because the pandemic required certain circumstances to be met, some businesses will fail if they cannot adapt, and certain items will never be able to live up to their previous standards. Zoom meetings will be the new standard for addressing any problem that might have been an email. Since many individuals have discovered that they perform better while working from home, this change was likely brought about (De Ridder & De Mey, 2020). This epidemic inspired individuals and organizations to go above and above, go the additional mile, and let us recognize that we can adjust to our surroundings and survive.
In addition, there will be a significant decrease in the number of office spaces required since more individuals will work from home and spend most of their time there. Hygiene concerns will increase, and courier and drop-off services will become crucial for a company to keep existing consumers and attract new ones. Technological advancements will make tremendous strides forward. Concerts, sporting events, performances, and movie theaters are likely to drop in popularity due to health issues; thus, these types of enterprises will need to reinvent themselves to become safe sources of entertainment. Most significantly, the amount of time spent interacting with other people has decreased, and this trend is expected to continue for at least the next several years.
Best Practices
Businesses could foresee customer behavior and meet their evolving requirements as one best practice. Understanding how the epidemic has altered customers is crucial for business. Businesses must convey that they care about their customers’ health and want them to feel comfortable. Whether a client is visiting a restaurant or a hotel, they must ensure that they are kept apart from other customers and that everything will be hygienic. In the case of e-services, businesses must reassure customers that their information will be secure so they will not worry about being hacked or having their credit card information stolen, to mention a few instances.
Notably, businesses must have a strategy. Any business requires a short- and long-term strategy that takes into account the demands of the market, customer preferences, and habits, as well as the tactics that will be put into action. Top-level managers can decide whether it is time to invest, enhance competitiveness, develop a new position, or exit the market by knowing what to anticipate from the industry in which their firm operates.
Businesses must also know when to completely overhaul their business models and, in the case of this pandemic, be ready and able to do so with an eye toward the future. In other words, rather than trying to change their strategies to survive the global epidemic, businesses must restructure their strategies for the long term and their future (De Ridder & De Mey, 2020). Recognize that society, demand, and consumer behavior are changing and that this will not endure for a few weeks or months.
Another criterion is that companies should have the choice to rearrange their operations so they may either concentrate on bringing their present goods or services to untapped markets or test out new goods and services to enter a new market or sector. Furthermore, businesses must assess their internal operations and reorganize in light of how the pandemic impacts their supply chain, workforce, production, and logistics. Additionally, as companies convert from defense to offensive, quick and decisive movers will triumph. The COVID-19 epidemic made it necessary to make adjustments, advancements, investments, risks, and new market and concept development. To avoid falling behind and losing customers, businesses must now be ready for the next stage and advance at the same rate as technology and their rivals (De Ridder & De Mey, 2020). To ensure future success now is the moment to be bold.
Relation to the Topics Covered In Class
This report relates to the lecture material by showing how the pandemic has positively impacted certain businesses and that change is unavoidable. It is essential to stay current with technology and to constantly research market opportunities and white spaces where businesses may concentrate. A business model should be a long-term dream and goal for the organization, so I can understand why it can be challenging to make changes from day to day. However, in the wake of the pandemic, organizations must recognize that the future is unpredictable and that they cannot remain in their current comfort zones. It is crucial to continue researching consumer habits, developing markets, and new technology to gain a competitive edge over rivals.
The report is consistent with a few ideas discussed in class, such as company strategy. To put it another way, a business strategy is a blueprint that outlines the many strategies, activities, and choices a firm intends to follow to accomplish its objectives. After this pandemic, I recognize that it might be difficult for an organization to change its business model because it is not straightforward. I could see the anxiety and the desire to remain the same and keep doing what has always worked. A corporate strategy should be consistent with the vision and mission of the company. On the other hand, thanks to the report, people can see that the companies that have been successful in the face of the pandemic have been gradually reorganizing their business plans and have transitioned their priorities so that they are better equipped to weather the pandemic.
References
De Ridder, P., & De Mey, N. (2020). The winners of the Low Touch Economy: How companies can recover and grow in the new normal. Board of Innovation.
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