According to some reports, there are more than 97% enterprises in Vietnam are SMEs, in which 60% of them are small enterprises. With limited resources, medium and small enterprises (SMEs) are desperate to cope with mounting challenges due to the Corona Crisis. Professor Rolf-Dieter Reineke has listed out 5 strategies for SMEs to survive through the global pandemic.
1. Rapid acceleration of digitalization:
The digital activities have proved their strength during this time, particularly the food and beverage leading. In the high time that the consumers afraid to outdoor activities, not only restaurants, traditional shops and other SMEs have learnt about digitalization the “hard way”, but immediately restaurants have to transform themselves in online based delivery services.
2. Re-organization of supply chains:
The enterprises are more and more pressing in seeking outsourcing. However, the dependence on the third party will somehow break the value chains. As traditional value chains fell apart; insourcing is now sometimes more important than outsourcing.
3. Customer demand: The sharp drop in sales leads to severe financial trouble.
The corona virus has destroyed the global economic system. 80% of fashion enterprises in the Europe and North America are facing financial issues. According to McKensey&Company, after the crisis, the demand is expected to stabilize at a lower level for many businesses. Therefore, enterprises have to re-evaluate the demand in order to adjust the supply more effectively.
4. Finance management
Finance management is confronted with a jump-start of cost-reductions, there is a need to conduct stress testing for financials.
5. Growing importance of corporate resilience and agile leadership
Life is not just in color pink, and the same to the business. The ability to adapt and flexibilize plays an important role to rehabilitate as well as create the resilience. However, it cannot be developed over night.