Dr. Zhang
Marketing 3343 N
March 13, 2020
"Take a Deep Breath and Assess Whether It Is Time to Buy" Analysis
Source: WSJ and Refinitiv
By now, just about everyone knows that the coronavirus is effecting many markets. Because of this many markets are struggling, while some are doing better because of how people are reacting. What makes this topic fascinating is that the article is reporting on these reactions and tries to advise what should be done and what shouldn't be done.
As stated before, the article is touching on the responses to the coronavirus. The writer is observed that companies are being effected by political decisions as many governments are thinking about how to spend their money in order to try and maintain the stock market. This decision making leads to another issue, and that's how the market might be damaged as funding and investments might decrease, leading to many companies having to try and make judgments surrounding these decisions and stock decrease, such as how they're going maintain inventory and their own money to make sure they don't go bankrupt.
The way this article relates to Chapter 12 is that a lot of what's going on involves decisions by wholesalers and retailers. Now, wholesalers might have to think about which locations they should send their supplies to, and which locations they shouldn't because it might cause profit loss. Online purchases have to now be closely monitored and some companies might have to consider which stores they should close down. Accommodating to customer health becomes a bigger factor as well as grocery stores might want to keep themselves clean because there will be a long line and high demand for many products. Strategies will also be changing seeing as how there might be "longer-lasting economic effects as layoffs and lost opportunities leave a post-viral gloom on the economy, making a U with an extended low more likely, even as governments are eventually forced to respond in size." (Mackintosh, New York Times). The thing to take away from this, as marketing students, is that we should always consider preparing for the unexpected and make sure companies have contingency plans way ahead of time for situations like these. That way in the long run, a company won't suffer as bad as others might.
Credit to information used comes from: https://www.wsj.com/articles/take-a-deep-breath-and-assess-whether-it-is-time-to-buy-11584129259
Article Published on March 13, 2020
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