The Metamorphosis of American Business – the line of survival post COVID-19
USO look to diversify their oil investments as prices continue to drop: should US firms be expanding their offering?
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The decline in US oil prices has been well-documented in recent weeks, and now large investors such as USO are looking to expand out of this remit. COVID-19 has certainly had a huge impact on businesses across America, with many firms exploring a diversification of their service offering in order to remain competitive during the current period of crisis; such as moving their services online. The current climate has highlighted the need for businesses to be more agile and innovative in order to adapt and keep themselves afloat. Companies struggling as a result of the oil crisis prove the benefit that a diverse business model can have, over one that only offers a particular service in a singular industry.
Post Covid-19 Business Metamorphosis
Reece Tomlinson, CEO and Founder of RWT Growth - financial advisers for the global SME arena - has given his thoughts on why this could be the time for businesses to start their own metamorphosis:
"This period of history is showing the economy where there is bloat, waste and unnecessary effort spent. Many businesses have laid off or furloughed potentially thousands of staff as other, seemingly less-skilled workers, thrive as essential or keyworkers. For some sectors and business leaders in those spaces, now is the time to future-proof their service offering against disruptive events and crises.
For retailers, those who did not have an e-commerce arm pre-COVID-19 should be engaging that portion of the business rapidly, using new digital marketing techniques and sales events to move with the new direction of the economy. Many traditional businesses may have been reluctant to invest in new services or processes, but, post-COVID-19, the economy will truly enter the fourth industrial revolution.
Businesses that do not use this opportunity to re-assess their business model and plan for, quite literally, every eventuality will find the market incredibly difficult to navigate in the coming months and years. We may even see some larger businesses begin to swallow up seemingly unrelated companies to diversify their offering; spreading their bets almost. COVID-19 will be a marked period in the history of the world’s economy in terms of evolution and diversification against future fiscal disruptive events."