The top three learnings from the most exciting Covid-19 business model pivots
In my previous article, linked at the bottom of this page, I wrote about how important it is to evaluate the short and long-term supply and demand impacts of Covid-19 in your industry, and gave tips on how to do this.
This article showcases the firms getting this right and explores some of the amazing business model pivots and propositions we are seeing in the market, and what we can learn from them.
Key learning 1: Do not limit your thinking. Leverage those with cross industry experience and views to imagine the full breadth of large and small pivots your firm could make.
Luxury retailer -> hand sanitiser producer
The Louis Vuitton conglomerate is using the production facilities that normally make fragrances and cosmetics for Dior, Givenchy, and Guerlain to create bottles of hand sanitiser, to help French hospitals.
Gym -> Hospital
1Rebel, a London-based fitness club, has announced that it is willing to offer its gym spaces to the NHS for extra beds during the coronavirus pandemic. 1Rebel co-founder James Balfour has said that he believes the gyms have space for up to 400 beds.
STEM education for kids -> PPE masks
INKSmith, a Canadian startup that was making design and tech tools accessible for kids, has now moved to make face shields and is hiring up to 100 new employees to meet demand.
Key learning 2: The most successful pivots are ones that identify opportunities in new markets that maximise the use of existing skill sets and resources.
Beer brewery -> home experiences
Signature Brew, a music-inspired craft brewery, is paying out-of-work musicians to hand-deliver its ‘Pub In A Box’ product with glassware, snacks, a music quiz, playlists and beer.
Household appliances -> medical supplies
Dyson has leveraged technology created developing vacuum cleaners to build a ventilator for NHS patients affected by Covid-19. It is efficient in conserving oxygen, bed-mounted, portable and doesn’t need a fixed air supply.
Restaurant -> online retailer
Top Cuvée, normally a neighbourhood restaurant and bottle shop with a great bar, has become Shop Cuvée delivering food, drink and toiletries to their customers.
Key learning 3: augmenting an existing offering to address demand changes can be more efficient and effective than a full pivot.
Netflix has launched Netflix Party which allows users to watch movies and TV shows with friends. It has a group chat function so friends can react and discuss the shows together.
Spiffy, the US on-demand car cleaning service have launched a new service offering to sanitise facilities and properties.
Airbnb announced a new global initiative to help house 100,000 healthcare professionals, relief workers, and first responders around the world during the COVID-19 crisis. Airbnb will waive all fees for stays arranged through this initiative.
How could you be better adapting your business to maintain growth in these turbulent times?
The starting point for any pivot decision is usually to run a 1/2 day workshop to ideate at a high-level a potential portfolio of pivots that might be made and then to prioritise a number of these to take forward for experimentation, market testing and refinement.
As Sia Partners we are specialists in helping firms do this. If you would like any informal advice please feel free to reach out (lucinda.goldklang@sia-partners.com). I am more than happy to share relevant learnings from my experience.
The previous article in this series can be found here.
