During the next few months, businesses that are already suffering will experience even more of the consequences of a global pandemic that is unique in modern history.
The slowdown in investment, the resulting reductions in turnover and the difficulty in generating new business will lead to a significant reduction in Portugal’s gross domestic product, as well as the return of an unemployment rate of around 10.1%. A study by the Banco de Portugal states that these are some of the implications of covid-19 for Portugal. They affect the entire business fabric, regardless of size, reputation or history.
This calamity has forced organizations to take measures to ensure their preservation in the markets. Previously used channels are clearly obsolete, requiring different solutions. In addition to those that are most in vogue, such as Zoom or Skype, there are other resources that make it possible to maintain the customer/organization relationship, such as Microsoft, with its Teams, Cisco, with Cisco Webex or even Google, with Hangouts. With almost all offline channels in a state of emergency or quarantine, organizations are relying on their digital strategies to mitigate the financial impact of covid-19 as much as possible.
These effects impact the entire business fabric, regardless of size, reputation or history. This pandemic will hit the big business conglomerates that are no longer digital-native and will have to restructure to make room for new digital solutions, while smaller companies that live by word of mouth and reputation will suffer dramatic losses affecting their very existence. Whether large or small, they all have one thing in common: the need to reinvent themselves! And what is the fastest, most efficient and necessary solution today? Digital as a long-term channel! We’re talking about investing in search engine marketing through the creation and development of content for websites, content marketing, which is a perfect bet in times of crisis, the launch of new features in e-commerce or social media as solutions that allow us to present differentiated and fundamental value propositions in pandemic times. We must never forget that, as in any transformation, fear is our greatest enemy, which is why we need to be resilient and chameleon-like if we are to adapt to the instability that is bound to arise.
With this instability and in a time of uncertainty, the acclaimed remote work is gaining unparalleled prominence and the sense of cooperation between employees, companies and clients has never been more acute. It is often said that the best idea comes from a specific need and, at this time, there are more than many needs for organizations.
They can now devote themselves to projects that were once forgotten, they can develop approaches that this brave new world of digital allows, they can and should look for innovative and differentiated solutions that allow them to reach their target audience, they should capitalize on their networks, which are now more vital than ever, and they should collaborate with their clients so that they can invest the remainder of their now crushed budgets in more disruptive responses that add value. A major benefit of this crisis is that it will allow proof of concept in real time, which, if proven effective, will form part of the new long-term strategy adopted by companies. To paraphrase an old saying, when you close a door, a window opens and this is one of the darkest periods of the 21st century, which should be seen by organizations and humanity as an opportunity to learn, grow and innovate.
The outcome is still unpredictable, but we can’t forget that the biggest challenge for organizations will be to look at opportunities that would have been overlooked yesterday and that digital, not only is here to stay, but can also be an effective, long-term solution.
Finally, the robustness and serenity that an organization acquires after surviving this time of instability will give it the capacity for any future adversity, turning any David into a Goliath.
*Digital Marketing Manager at Católica Lisbon, School of Business & Economics