Covid19: How to minimise the business impact of Corona Virus today
The corona virus (covid19) outbreak is first and foremost a human tragedy, affecting hundreds of thousands of people.
It is also having a growing impact on the global economy. This article is intended to provide business leaders with a perspective on the evolving situation and implications for their companies. The outbreak is moving quickly, and some of the perspectives in this article may fall rapidly out of date. This article reflects Domina8 perspective as of April 11th, 2020.
The impact of corona virus is felt worldwide and locally in New Zealand. The economic impacts of Covid-19 will be different to those from other external shocks to the economy. The export impacts have been well highlighted, but importers will suffer too. And there’s potential for the impacts to spread to the non-tradable sector too, especially if more New Zealand cases start to present themselves and people movements are restricted. Lake Tekapo is one of thousands of business and local attractions that affected by Covid19.
Financial markets are spooked
The most immediate impact has been on financial markets. Share markets have fallen and safe-haven assets like gold, the Swiss Franc and bonds have risen (meaning interest rates have fallen).
Markets are hoping that central banks will work their magic: cut interest rates and flood the world with even more easy money. But at record low interest rates and after sustained periods of quantitative easing, we don’t know if these tools can still help revive financial markets and the real economy.
What if I am concerned about my substance use and/or gambling?
During this time people may be looking to familiar habits or seeking out new ways to cope with feelings and situations. While alcohol or other drug (substance) use and / or gambling may seem like ways to cope, these behaviours can negatively impact many areas of our lives including our health, wairua (spirit), hinengaro (mind), relationships and overall wellbeing. Advice
Epidemiological swing factors for COVID-19
Every country is looking to join the few that have controlled the epidemic for now and are focusing on preventing a resurgence. The next stages in every country are unknowable (Exhibit 1). But in our view, the spread or control of the virus in the next year comes down to five factors:
- Growth of new transmission complexes and evidence of seasonality. While most countries in the world have at least one case, most counts are relatively low. The extent to which these countries follow the path of countries such as Singapore that have achieved rapid control, versus that of western Europe and the United States, will be a major driver of outcomes. Moreover, these geographies also skew to more tropical climates and will provide some evidence on how much of a mitigating effect heat and humidity will have on the coronavirus. If the virus proves to be seasonal, this has the potential to shape both emerging and existing transmission complexes. Covid19 is bad news.
- Impact of physical-distancing measures. We know that rigorous, at-scale physical-distancing measures can drive a significant reduction in the number of new COVID-19 cases. However, given the range of approaches in use—and the varying stringency with which they are being applied—there’s much still to learn about what exactly works and how long it takes. In the next one to two weeks, we will learn much more, as we begin to see evidence of the impact of physical distancing in Europe and the United States.
The key learning from China on covid19 for both medics and marketers is speed – speed in containing the virus and speed in recouping losses.
Thanks to the actions taken to limit the spread of the virus, new infections continue to drop and life seems to be returning to some semblance of normality – although there’s no sense of complacency – allowing marketing and media strategists to consider their next moves.
How can domina8 support during this time?
Can contact us to get a tailored plan for your website and online marketing services.