Write a paragraph on
'Price rise and limited resources during covid'
Word limit- 90 words
Answers
Answer:
Demand is volatile right now, creating a variety of pricing challenges. Companies that focus on long-term value rather than short-term gain are best positioned to meet them.
sector leader now facing the prospect of human tragedy shares one top priority: the health and safety of employees, customers, vendors, and their families. Once they have put the necessary measures in place to protect people’s lives, leaders must help protect livelihoods as the COVID-19 pandemic turns the global economy upside down.
The crisis is also exerting sudden and unprecedented pressures—sometimes up, but more often down—on demand and pricing. In many sectors, from air travel to durable goods, sharp drops in demand, excess capacity, and heightened price sensitivity are converging to drive down prices and destroy value. Many customers are asking for discounts and contract renegotiations, while some competitors are making aggressive pricing decisions. In other sectors, from shipping and groceries to medical supplies, demand has risen to levels no one could have anticipated in early 2020, putting upward pressure on prices.
In both scenarios, companies need to sustain value to both survive the crisis and protect their employees’ livelihoods. Companies must also be flexible and creative to support customers in this tough time and work with them to weather the crisis together.
While it’s difficult to take a long-term view in the fog of a crisis that seems to change every day, we expect that the companies that emerge in the strongest positions will be those now taking a “through-cycle” view of their relationships with customers and the communities where they do business as part of an integrated approach with marketing and sales. In the midst of the worst health crisis in more than a century, they will be at their best, addressing customers’ pain points with flexible payment terms, unbundling, and one-time promotions. In short, they will drive long-term value creation rather than seek short-term advantage.
In this brief memo, we suggest some “dos and don’ts” to help leaders navigate unmapped territory during the pandemic. The situation varies widely across industries and geographies, so we offer an overview of pricing considerations here, not specific advice for any one company.
Answer:
At the beginning of 2020, 135 million people around the world were already facing extreme hunger. According to the World Food Program, that figure could rise to a staggering 265 million people by the end of this year. In remarks delivered to the UN Security Council on April 21, UN World Food Programme Executive Director David Beasley said, “In a worst-case scenario, we could be looking at famine in about three dozen countries.”