How Has COVID Affected the Competition Between the Businesses?

COVID had a grievous impact on the businesses across all industries resulting in the shut down of many small and medium ones while crippling many large conglomerates. Moreover, there was one such industry that has was hit worst by the pandemic and that was manufacturing. To read how profound the impact has been, you can read our blog.  

In this post, we are going to talk about how COVID has had a profound impact on the cutthroat competition that was there before the pandemic crippled them all.  

How is the scenario different from 2019?

Before 2019, the marketing landscape was brimming with neck-to-neck competition among the manufacturing businesses. There was a rat race to gain the Number 1 position and broaden their customer base. But everything came to a standstill when they got hit by the COVID 19 wave. While earlier the competition was necessary, with the onset of COVID. collaboration takes the front stage.  

Now manufacturing units or businesses from any industry for that matter are collaborating. The reason for collaboration to take precedence comes from the fact that the global economy for the first time in decades has hit a new low. GDP has declined. This made the US government design and enforce guidelines for businesses. This is done to ensure balance in the market and let SMEs survive. Now the goal from garnering customers and generating revenue has shifted to the public interest. 

Pro-competitive agreements

Businesses, around the world, are signing pro-competitive agreements to make sure that the economy survives and it is justified for the small and medium scale businesses.  

Hence, to mitigate the possibility of any gap, the government has also issued some legislation that focuses on the exemption from the anti-collusion rules and many more. Thus there is a balance in the economy and it furthermore, minimizes the impact of pandemics on businesses across industries.  

Furthermore, there is constant monitoring of the market development and reactions. This is to hereby done to keep a check for any unhealthy practices, like increasing the price of the products. Regulatory authorities have understood that. Thus they are imposing laws that focus on and simplify market practices according to the grievous impact COVID has inflicted.  

Therefore, from being a part of the rat-race, now businesses across the globe are working towards strengthening the economy.  

United Nation Conference for Trade and Development has encouraged the government to protect the competition by taking these crucial actions: 

• Enforce competition laws against companies that are abusing their stand in the market by increasing prices 
• To ensure public health, the government is keeping a check on the manufacturing and the availability of essential products like masks, hand sanitizers.  
• Ensure that the products are readily available in an equal quantity to the consumer.  

Businesses after the COVID outbreak are cooperating and consistently working towards health and keeping the economy afloat.