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Discussion Topic 1:What industry sectors tend to be better performers? Why? How may Covid-19 lead togrowth in certain sectors and decline of other sectors that will have to ‘re-invent’themselves to make them competitive? You may pick a sector from healthcare, education,retail, hospitality, manufacture, IT, or transport.From the selection criterion, Bloomberg lists healthcare and information technology (IT) asleading industry sectors. These industry sectors tend to perform better because healthcare is avital element of life with connections to many other industries. After all, everyone needs medicalcare at some point in their lives and uses health services of some kind. IT has generallyperformed well at the beginning of the economic cycle, as it is more economically sensitive thanmany other sectors. Some sub-sectors such as software, computers and peripherals, havehistorically performed better during the period of expansion (Fidelity, n.d.).As far as Covid-19 leading to growth in certain sectors there is an opportunity to ensure growthin the industry as schools contemplate reopening as schools try to cope with returning to somesemblance of normalcy after restrictions from Covid-19 are lifted. Whereas the traditional bricksand mortar school never had to think about remote learningwrit large, or at least to the degreethey are compelled to do so now, major stakeholders in the education space must be able inducea wholesale reinvention of the industry by assessing the effect of remote learning on studentcompetencies and there must be a focus to build infrastructure and capacity to enable remotelearning (Schleicher, 2020). Michael Hansen, CEO of Cengage said :“I wouldn’t be surprised tosee enrollment in residential college programs drop by roughly 10% or so in the fall, and revenueto fall around 20% if students won’t be able to attend in-person in the fall,” says Horn. “On theflip side, I think we will see enrollments in online programs rise quite a bit, driven by adultlearners — many of whom have been recently laid off — looking to wait out the recession anduse their time productively by skilling up. ”Regarding declines, as a result of Covid-19 retailers have seen a significant drop in sales, incomedisparities will drive continuing business toward off-brand and discount retailers, and onlineshopping will continue to accelerate. As retail stores closed for months due to restrictions theysaw increasing debt burdens, moderating revenue growth, compressing margins, increasingSG&A, and slowing asset turnover. The greatest shocks to retail are a halt in store traffic,demand on digital and a grave impact as a result of the disruption in the supply chain (Deloitte,n.d.). To be competitive retailers will have to accelerate digital retail. So those retailers that havestrong platforms and sophisticated data analysis can succeed in connecting with consumers andoffering them additional services and value. As a result of public health concerns,-telemedicine,online learning, virtual payments, and online grocery ordering and delivery. As the convenienceof these experiences increases, these trends are likely to accelerate (Deloitte, n.d.)

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Term
Winter
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N/A
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Deloitte

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