The economic crisis will weed out businesses models that do not adapt to the new reality.
At the onset of the pandemic, doomsayers asserted that business would have to either completely change their models or face bankruptcy. In reality, though, most companies have pivoted to models that have helped in short-term survival and assisted in building long-term resilience.
But, to implement a successful lateral move, the company should be able to cater to one or more long-term trends that the pandemic has created or accelerated. The pivot must also be an extension of the firm’s existing capabilities and ensure it does not weaken its original mandate.
Any pandemic-induced changes to the business model must have a clear road map for profitability. They should further augment the brand’s value in the eyes of the customer.
[6 minute read]