Corona Virus Affecting Businesses Worldwide

COVID-19 commonly known as Corona Virus has been a black swan for businesses and companies all around the world. 2020 has been a great shock for investors as they did not expect a pandemic like this which will disrupt the world economy just in a matter of weeks. Even now the investors could not mark what their future will look like and it is causing extreme fear.

The pandemic started from China now has reached more than 150 countries as stated by World Health Organization. For the present, it is hard to portray a picture of what economic impact this pandemic leave will but for sure this has caused huge loss for investors and has affected hundreds of businesses.

Starting from China, where this Corona Virus broke out, the businesses there started slowing down and then eventually when the situation got worst, they had to shut down all their plants, factories and offices. And this happened in all other countries too when the pandemic reached there. This affected many well known and rich companies such as Apple, which faced a huge shortage of Iphone supply as a result of shutting down of company’s primary manufacturer, Foxconn in China. This has slowed down the company’s sale by 61% as compared to 2019. This has shaved billions of dollars of profit.

The world trade is on an edge of disruption. As the factories and plants are shut down and restrictions are imposed on travel, import, and export. It is expected that this pandemic outbreak will have a longer and larger impact on world trade. This extreme temporary ban is affecting private businesses as containers are not allowed to pass, many containers full of eatables such as vegetables, fruits, and meaty products are clogged at the coastal ports. This is having a huge effect on daily wager’s income and local businesses.

There is a great loss of income for airlines as the air travel has been temporarily banned in many countries. An international air transport association warned that 2020 can cause a loss of $113 billion because of this pandemic break out. Not only this caused loss for airlines but disrupted country’s economy too as the tourism has also been disturbed. So did happen with restaurants, markets. Bars, hotels and other entertainment retail particularly in tourist areas which are closed due to Corona Virus. This is ultimately having an effect on the economy as the source of taxes has been slowed down.

There has also been a huge loss to online markets and E-stores because the factories are closed; products which are in demand are not available which is causing huge loss. Many companies have found some alternatives but many are still stuck. And it is expected that the ones which are working on alternatives, will soon also face the same problems because this Corona Virus is spreading just like sea waves.

Where Coronavirus has made many things difficult for retailers and manufacturers, it has been a good charm for owners of pharmaceutical companies, tissue manufacturing companies, masks and hand sanitizers brand because these products have been in demand since the outbreak of pandemic.

People who are daily wagers are suffering the most, they are quarantined in their homes with no opportunity of earning money, many are starving to death, and this is a burden on government as it has to fulfill the needs of these people. The sectors of real estate are also on the hit as things are getting difficult there too, with all those curfews and quarantine thing, workers are staying at home. Supplies and things needed by the professionals are not available as the supply chain has been closed.

The coronavirus pandemic affected the consumption of coal, gas and other energy resources but oil has been amongst the top of these as the major energy consuming countries are facing serious threats from Corona Virus and this has made a downfall in global oil demand. The impact of Coronavirus may be temporary but the effects it will leave will stay longer than expected.

It is believed that when this Corona Virus will end, the whole world dynamics will be changed, many countries which were the world’s leading power may not remain on the same position. The world’s economy will be disrupted just as it could have been disrupted after a world war. It is also assumed that it will be highly difficult for many countries to regain their positions. Coronavirus will end sooner or later but the challenges will remain for a longer period.

On the contrary, few markets are still floursishing during theCOVID outbreak. Home Fitness Equipment Market is such an example.

Information Source:- COVID 19 Impact on Global Business Research Report, 2020 - 2027