Adapting Businesses amid the Pandemic: Strategies that Proved Successful
In the face of the ongoing pandemic, businesses worldwide are adapting to survive and thrive. A recent article in Harvard Business Review (HBR) highlights the importance of a company's internal capabilities in navigating uncertainties, emphasizing that the ability to pivot effectively can be the key to success.
Changing direction is not without its challenges, especially when it comes to managing costs. However, as the epidemic has proven to be a litmus test, it has become evident that businesses that fail to adapt to the new reality of shorter value chains, social distancing, and enhanced technology use may not survive.
Many businesses are pivoting to business models that promote short-term survival and long-term resilience and growth. Let's explore some successful pivots across various industries during the pandemic.
In the wellness and fitness sector, Gympass, originally focused on physical gym access, quickly transformed into a holistic digital wellness platform when gyms closed due to COVID-19. This strategic move led them to launch home-based wellness solutions, partner with fitness providers, and introduce digital offerings. As a result, they expanded into ten countries within four weeks, doubled their corporate clients and revenue, onboarded nearly 100 partners, and achieved a $2.2 billion valuation by early 2025, rebranding as Wellhub.
Peloton, a fitness equipment and digital classes company, adapted its marketing strategy for the pandemic by offering affordable monthly payment plans and a digital app with high-quality workout classes. This attracted customers seeking at-home fitness alternatives during gym closures, driving significant growth.
Retailers have also embraced the digital shift, implementing "Click and Collect" services that allow customers to purchase goods online and safely pick them up curbside. This omnichannel strategy has boosted eCommerce sales sharply during the pandemic, with a 20% increase in European eCommerce revenues in 2020.
Small businesses, too, have had to adapt to survive. Some entrepreneurs who faced near closure turned to eCommerce to sustain their operations and reach customers online, thereby recovering from early pandemic losses. A downtown beauty salon owner, Chrissy Scandin, pivoted her business model with guidance and planning to adapt to the changes brought by COVID-19-related disruptions such as cost rises and changing consumer habits.
Unilever, a multinational consumer goods company, pivoted to prioritize packaged food, surface cleaners, and hygiene products, aligning with the increased demand for these goods during the pandemic.
The HBR article also discusses the factors that make a company "future ready," emphasizing the importance of strategic planning, digital solutions, and omnichannel approaches. Consumers are increasingly willing to experiment and prefer companies that are perceived as doing more for society. Brand loyalty can no longer be taken for granted, as consumers become more interested in safety, experience, and comfort.
In the food service industry, restaurants are considering offering eat-in, takeout, delivery, and catering services to cater to various consumer preferences and survive the pandemic. Small farmers have also set up online shopping sites to sell goods directly to home users, bypassing traditional distribution channels.
In conclusion, the pandemic has forced businesses to rethink their strategies and adapt quickly to survive. Successful pivots align with one or more long-term trends created by the epidemic, are a lateral extension of the company's capabilities, and offer a sustainable model to profitability. Conserving resources in cutting the chances of failure for new ventures is also crucial in this challenging time. Businesses that can adapt, innovate, and remain resilient will be the ones to thrive in the post-pandemic world.
[1] Source: https://www.businessinsider.com/gympass-pivots-to-holistic-digital-wellness-platform-2020-4 [2] Source: https://www.cnbc.com/2020/04/27/peloton-stock-soars-as-company-reports-record-quarterly-subscriber-growth.html [3] Source: https://www.forbes.com/sites/forbesagencycouncil/2020/05/27/how-click-and-collect-is-helping-retailers-thrive-during-the-pandemic/?sh=369f108a5d0d [4] Source: https://www.entrepreneur.com/article/361357 [5] Source: https://www.forbes.com/sites/forbescoachescouncil/2020/06/03/the-power-of-strategic-planning-during-crisis/?sh=6304423065d8
- In the wave of digital transformation, finance plays a pivotal role for businesses navigating the uncertainties caused by the pandemic, as strategic pivots require careful management of resources to ensure sustainability.
- The food service industry, for instance, invests in diverse offerings like eat-in, takeout, delivery, and catering services—all supported by financial planning to address the varying consumer preferences in the pandemic era, thereby laying foundations for post-pandemic growth.
