Identifying Opportunities in Economic & Regulatory Trends
Regulatory Trends
1. Automated and contactless systems
Recently, I have seen trends in advertising with the buzzword "contactless." Such as the Domino's commercial that states, "your pizza is never touched once it leaves our 500 degree oven." Businesses will begin to move toward a fully online or fully contactless presence. I currently work for Cox Communications, and we have made permanent changes to our retail stores. Changes such as masks, sneeze guards, keeping six feet distance and no longer allowing customers to wait to be helped inside the store. I have been told by my leaders that these changes will be in effect until at least September, and could very well become a permanent change. More traffic is being directed by phone or online, not only for my company but for nearly every company that is continuing to conduct business during this time.
2. More sustainable and independent business & people practices
The pandemic has caused a domino effect in the business world. Businesses that rely on other businesses to stay open have also been out of work. For example, a meat factory had an employee test positive for the coronavirus, therefore, the meat factory had to shut down. Due to that, nearby grocery stores had a huge shortage on meats. There are many more of examples of this in supply chains. There will be a new trend when the world opens back up where businesses will attempt to become as independent as possible. This opportunity will be extremely difficult and will require great sustainability efforts.
Economic Trends
1. Online Shopping/Ordering
One thing COVID-19 has proved, online products will sell no matter what circumstances our current situation looks like. Those who have invested in Amazon third-party dropshipping are seeing a high increase in sales because people have been restricted from visiting retail shopping outlets for the past few weeks. This was unexpected because the vast majority of people have never seen a pandemic like this before. If you are looking to get a product out there, considering Amazon will be a wise decision. I found this out when I was ordering things for myself on Amazon and i noticed there were many items out of stock because Amazon business was through the roof and supply chain management is very difficult to maintain during a pandemic.
2. Nonfinancial risks
Many people are fearful of where the economy is headed. The government has dished out stimulus checks. Businesses have closed all around the world. The stock market was on a continuous decline until this week. People have lost their jobs and there is a lot of uncertainty about whether some people will be able to afford their bills. Taking financial risks during a pandemic like this shows one of two things; you either have a good amount of money, or you aren't very smart about your money. I believe that many individuals would form this same belief after taking into consideration the effects the pandemic has had on financial risk all over the world.
Good Morning Walter, I glanced at your article before I started mine and you really helped me start out. I really enjoyed your idea with independent businesses, however as you stated it will be extremely hard for some to do. Especially since America outsources most of its products. However your nonfinanical risk may not be true, because in my assignment I went over the lower interest rates, which for many allowed them to obtain a car or a house, which in the long run is financially smart. But I understand where you are coming from, thank you for good reads.
ReplyDeleteHi Walter,
ReplyDeleteI agree with your reflection on online selling, mainly Amazon purchases, being in high demand during a pandemic when other operations are closed. However, I am curious if this trend has to do with Amazon's other features (like Prime Two-Day Shipping and a wide variety of products) that makes this desirable for people to shop because it doesn't seem that all online retailers are booming quite the same. For myself and my family, we turn to Amazon with little thought often for the ease of ordering, without much price comparison for low price goods. I would be curious if this is consistent across other customers.