Managing disruptions in the new normal

Published February 18, 2021, 6:00 AM

by Ted Estacio

During this pandemic, businesses try to be innovative and creative in marketing their products as consumers’ purchasing power starts to decline for a number of reasons – loss of jobs, stoppage of their streams of passive income from their investments and tightness in cash flow as their family income comes in trickle.

From the business point of view, market leaders are faced with less consumer demand as they shift to value for money products.  Lesser consumer demand, which is translated to lower orders to the manufacturers, triggers decision which either closes operations to save on the bottom line figures or operate at half of their operating capacity. Others decide to venture into new businesses to be able to utilize existing manpower and manufacturing capacity.

One good example is a company engaged in the manufacture of cosmetics have made the right decision of going into the food industry.

Another company who partnered with a known restauranteur has to shift from fine dining to cater to middle to low segment of the market producing budget meals, low priced menu and a delivery system to support its marketing efforts.

Disruptions  are a risk that must be managed.

If not properly handled, it becomes a slow death for many as they eat up on the revenues, while many important expenses like rent and taxes continue to be paid.

Disruptions constrict the market. As more people stop patronizing their favorite products,distributors and manufacturers would rather close to save on the rental expenses being paid for their places of business.

Disruptions, though, can be positively managed. One company who repacks fruits and vegetables being sold by groceries, have to go retail even if it meant to be in competition of their products sold via the groceries. They increased volumes of their purchases from their supplier farmers from the north to as far as the Mindanao region. Then they engaged in on line selling and make available thru a delivery system. Companies turn over ration increased while their bottom line improved compared to prior years results.

One business that retails toys in Divisioria was able to save its business by using the online platform. Joining a well known online shopping, their volume of sale increased by at least 45%.

Disruptions? Let us be more positive in handling them.

 [email protected]