Question

Discuss the effects of COVID-19 on Five (5) micro environmental forces (suppliers, customers, marketing intermediaries, competitors and public) within the financial service sector with examples or cases attached

Answer 1

Answer: COVID 19 Pandemic has affected 200 countries in the world and it has hit the economy of many countries badly.

Effect of COVID 19 on Suppliers- Suppliers are not getting orders due to lower demand, there is less demand in the market, production has stopped due to COVID 19, there is no demand for raw material, transportation is not allowed so suppliers have been hit badly. The inventory that they kept in the warehouse also increased warehouse cost and suppliers who supply perishable products, their products got stale and they suffered huge loss.

Effect of COVID 19 on Customers- Customers cannot go out to buy the things that they want due to lock down and curfew. Their needs are not getting fufilled, they have to buy the items ate higher prices, they have to go for substitute because there are shortage of some items.

Effect of COVID 19 on marketing intermediaries- Marketing intermediaries are the mediators between producers and end users, they have also been hit because they got heavy amounts of orders online that they are not able to fulfil, because of shortage of stock of goods, they cannot fulfil the demand of the customers in bulk. They are also not getting proper transportation because of lock down.

Effect of COVID 19 on competitors- Competitors have to do the collaboration with their rivals due to COVID 19 pandemic. They are not able to sell the products at lower prices because their margins have been hit. Government is giving the signal to collaborate the retail industry and super markets.

Effect of COVID 19 on Public- Public has been affected badly due to COVID 19 situation, people have to stay home due ro lock down, they have lost their routine life, many people are confined within the four walls and they are getting depressed, people are not going to restaurants, long drive, for parties. People are not getting the products that they wish for, they are not getting the personalized service due to social distancing, their physical and mental health have come down. Some people have lost their jobs and companies cut the salaries, people have been hit financially.