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05 The business of survival - Coggle Diagram
05 The business of survival
some companies won't make it through the crisis
the collapse in commercial activity is severe and unprecedentedly.
:red_cross:an illusion: there will be only a slight dip
ruthless giant firms are so brave that they are signing up for public service
LVMH is distilling hand-sanitiser
General Motors wants to make ventilators and pickups
Alibaba is distributing masks worldwide
rivals' co-operation
expects only a slight dip
There will be extreme stress
indicators
the volume of cars and parts shipped on American's railways has dropped by 70%
Many firms have only enough inventories and cash to survive for three to six months
fire or idle workers
Global oil demand has dropped by up to a third
defaults cascading through domestic payment chains will deepen the pain
who can survive depends on
industry
necessity
tech companies
balance-sheet
many small firms are closed
how easily they can tap government loans, guarantees and aids
in the future, a new intermediate phase will begin
firms will revive in small pace
what to do
be smart
reassure customers
mereger
expand market share
secure their supply and distribution
safer producing procedure in factories
assess long-run prospect
be ware of three trends
a quicker adoption of new technologies
freewheel global supply chains will be recast
a further rise in corporate concentration and cronyism
which should be resist since it will mean more graft, less competition and slower economic growth