A New Strategy for the New Normal in Vietnam?
The current Covid pandemic impacted companies around the world. Everything changed within a few months. The “New Normal” has arrived and businesses had to adopt new business models, change their strategy and review processes. It did not stop in countries that did well, like Vietnam.
With lockdowns in most countries, the global growth rate plummeted in the first half of the year. It caused immediate concern for companies about their financial stability. It hit some industries severely, especially tourism, airlines and F&B. Several bigger companies (for example FlyBe) already went out of Business. And many more businesses will not see the end of 2020.
A pattern across industries
In light of this development, McKinsey published an interesting article about the impact of Covid on different industries. It highlighted a very interesting result:
Industries that were in good shape prior to Covid are forecasted to achieve even better results. On the other side industries already struggling will perform even worse by the end of the year.
McKinsey even analysed that the same principle exists within Industries. In other words – Covid widened an already existing gap between industries & competitors. For details of the data please visit this article.
There are different reasons for this development. Here are some examples:
New strategy for post-Covid
With the future of economies uncertain because of Covid it is important that companies react now and not waste further time. Anyone waiting to see the full economic impact, takes the risk to fall behind their competitor – or even completely disappear.
What are the options for businesses that did not do well during the pandemic?
- Review and amend the current strategy to reflect the New Normal.
- Commence with a digital transformation to enable an agile business model and removal of potential slow and expensive legacy systems.
- Companies experiencing financial difficulties must focus on a restructuring programme. The key strategy is cost reduction – with the focus of having more efficient processes.
All the above will help companies moving towards a more agile and innovative business model embracing new trends and technologies and of course to survive this crisis.
The current situation is a threat for many businesses. It also represents an opportunity to change their strategy and business models that will enable them to serve their customers in the New Normal. But they must react now – as speed really matters!
Our services in Vietnam
RSP International in HCMC, Vietnam, can help your business in these difficult times with our consultancy services. We can review your business model and setting up a new strategy to future proof your business. We can also assist in restructuring programmes to reduce costs and increase efficiency. This will include documenting and improving your processes. Please find details of our services here.
If you are interested in our consultancy services, please contact us and we will provide further information.
