Published by MBA Skool Team, Published on March 22, 2020
The Coronavirus pandemic has completely eroded business world over with all industries struggling amidst a global lockdown. Since the beginning of 2020, the spread of coronavirus has completely destroyed the business ecosystem world over. Businesses world over have lost trillions of dollars and one the worst global recessions have hit the world.
Coronavirus Impact on Business Sectors
The coronavirus has forced governments to ensure all people are locked down and hence all businesses have been impacted. Some of the biggest impacted businesses are tourism, airline industry, consumer electronics, apparel, lifestyle, automobile and more.
1. Tourism & Airlines
Restrictions on global travel and quarantines mean millions of travelers have cancelled their plans indefinitely. This has led to billions of dollars of business stalled. Places of tourist interest like Eiffel Tower in Paris, Taj Mahal in India, Opera House in Sydney etc have all been shut down. This ripple effect of no tourists has destroyed tourism.
With China being the global leader in manufacturing, the impact of a lockdown has severely affected business. Commodity prices have come down drastically. This is a severe business impact because of the coronavirus.
3. Automobile, Consumer goods, Luxury goods
With a global recession inevitable, consumers all across the world have stopped purchases of any product or service which is non-essential. The businesses in automobile, luxury, consumer goods etc are impacted because of coronavirus. Shipments of laptop, mobile phones, smartwatches etc have stopped completely.
With people being locked down, schools and universities have been shut down which had led to the current education system to collapse.
5. Hospitality, Entertainment
Coronavirus has impacted the hotel, restaurant, movie theatres business across the world to prevent further spread of the virus. This pandemic has left thousands of hotels and millions of food joints to be closed indefinitely.
While the sale of sanitizers, masks, gloves etc has boosted revenues for pharma companies, the healthcare system & hospitals are on the verge of collapse because of the huge volume of patients to be treated. This industry would face the business impact of coronavirus in the coming years also.
Since all industries are heavily interlinked, and the pandemic affecting all nations world over at once, this is an unprecedented event the world is facing. Many companies will dissolve, industries will crumble, millions of jobs will be lost unless this pandemic is cured.
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