Positive and Negative effects of the outbreak of COVID19 on business segment

As we are aware of the outbreak of COVID19 that originated from China has spread across the globe affecting the world’s most powerful countries and bringing the state of virtual lockdown. It originated as a Health Crisis but is now also converting into financial and economic crises. It has brought a very significant impact on almost every business sector be it tourism, transportation, retail, oil and gas, stock market, banking and online business platform. All have been exaggerated either openly or in some way. Let’s have a brief look at the impacts of COVID19 on business:

Impact on large scale industries or businesses

Major impact of the outbreak of COVID19 will be seen in tourism, transportation, food and automobile sector. As most of the industries are dependent on the supply of their raw material and parts from China, the virtual lockdown of many business centers of China has increased the lead time which will have a definite impact on the supply chain which will widen the gap between demand and supply and will increase the cost of many commodities. Many large companies like Apple and Nike has closed thousands of their stores to avoid the spread of COVID19 which will have impact on the jobs on many people.

Airline industry is undergoing through a massive loss as almost 70-75% of the flights are cancelled or the no of passengers have declined massively. Many large players of the airline industry are on the verge of bankruptcy. Many industries are on the verge to cut down there expenses to survive, reducing the manpower being one of them.

Impact on Small scale industries or businesses

Small scale market is affected most heavily due to COVID19. Almost all restaurants and hotels are going through heavy losses because of the lockdown. The retail and wholesale markets have shown a very steep decline in sales as the number of customers has decreased. Many retail outlets have been closed and some even permanently. A sharp decline in sales of almost every sector and also delay in the production due to shortage of raw material.

Industries or Segments benefitted by COVID19

Some industries have also gained its sale volume in the time of this health disaster. As this outbreak is forcing the world to follow the pattern of social distancing, many companies like Amazon, Alibaba etc that follow online platform have gained business due to this. There is also an increase in the business of healthcare, pharmaceuticals and chemicals because of the need to maintain the health in these crises.

Overall the impact on every business sector is severe and is expected to widen which might even lead to recession.

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