What Did the Companies Do Different for the Success?
WHAT HAVE THE COMPANIES, WHICH ARE AFFECTED NEGATIVELY DURING THE COVID 19, DONE DISTINCLY FOR THEIR SUCCESS?
Most companies have been struggled to survive along with the COVID 19. So, they focused on how they could survive. But this crisis was a little bit different from the others. It was like a two-headed monster!
One was about the necessity of continuing the work without failure because of the pandemic, and the management of the health of employees, while the other was about creating the technological infrastructure and business process, which would ensue a safe business continuity. In this rocky road, all of these were able to be done in a blink. (We owe a debt of gratitude to technology, which enables to take these vital decisions throughout the pandemic.)
We remembered why we drive the car after we fend off a dangerous thing on the car glass. We thought immediately about, how we should try to adapt to the crisis for the sustainability of the company, and we began the works. In this way, leaders brought their usual crisis instruments into play, such as credit/debt management for cash balance, supply chain optimization, suspension of others except urgent investments, cutting the costs, debt restructuring, capital increase.
Managements of almost all company concentrated on the above-mentioned two main issues, and the great majority of them were successful. Companies, which are in sectors, such as transportation, accommodation, catering, contracting, retail, and manufacture of ready-made clothes, and were badly affected throughout the pandemic, were less successful according to others. However, some others were just grateful for that they were still alive.
At first, they noticed that adapting to the crisis is necessary for strategic goals, but not sufficient. This crisis differed from previous ones: the black swan was on the stage and a new era was beginning.
Some others ‘took advantage of the crisis’.
So, what did they do different?
- The parent company of Hilton, Hyatt and Marriott hotels have added the issues to their business model, such as nursing and rehabilitation centre for old persons, and real estate management,
- Turkish Airlines attached strategic importance to air cargo, and enlarged its market share quickly,
- The catering sectors generated creative solutions on take-away and home-delivery services,
- An establishment, a manufacturer to the clothing chains, exported medical uniforms- in the amount of its half-turnover- during the pandemic, and at this point, it made a bigger investment decision,
- Retailers, like any others, began to make use of technology more,
- In consequence of the pandemic, the companies prioritizing the digitalization got their rewards through their surprise value creation,
- Companies are strengthening theirs market presence every passing day…
…and more examples…
However, the different one was the new business development strategy.
The business development is not only market development for existing products, but also area development…
With the pandemic, global customers determined the new fields individually or institutionally. By seeing into new demand areas, the flexible companies manoeuvred. The top management of the companies concentrated on the business development together. They put differently obtained options into practice and achieved successful results from most of them. These kinds of companies have been survived by adapting to the crisis. But also, they have been supporting their profitability goals and steady growth by developing business. They have rebuilt the concept of sustainability.
In short, the business development is actually essence of matter in the business life.
Head of Consultancy, TDG Global