Post Corona: From Crisis to Opportunity

Post Corona: From Crisis to Opportunity

Scott Galloway

3.96(4439 readers)
The COVID-19 outbreak has turned bedrooms into offices, pitted young against old, and widened the gaps between rich and poor, red and blue, the mask wearers and the mask haters. Some businesses--like home exercise company Peloton, video conference software maker Zoom, and Amazon--woke up to find themselves crushed under an avalanche of consumer demand. Others--like the restaurant, travel, hospitality, and live entertainment industries--scrambled to escape obliteration.

But as Scott Galloway argues, the pandemic has not been a change agent so much as an accelerant of trends already well underway. In Post Corona, he outlines the contours of the crisis and the opportunities that lie ahead. Some businesses, like the powerful tech monopolies, will thrive as a result of the disruption. Other industries, like higher education, will struggle to maintain a value proposition that no longer makes sense when we can't stand shoulder to shoulder. And the pandemic has accelerated deeper trends in government and society, exposing a widening gap between our vision of America as a land of opportunity, and the troubling realities of our declining wellbeing.

Combining his signature humor and brash style with sharp business insights and the occasional dose of righteous anger, Galloway offers both warning and hope in equal measure. As he writes, Our commonwealth didn't just happen, it was shaped. We chose this path--no trend is permanent and can't be made worse or corrected.

Publisher

Portfolio

Publication Date

11/24/2020

ISBN

9780593332214

Pages

256

Categories

Business

About the Author

Scott Galloway

Scott Galloway

Scott Galloway is a clinical professor of marketing at the New York University Stern School of Business, and a public speaker, author, and entrepreneur. He was named one of the world's 50 best business school professors by Poets and Quants.

Questions & Answers

The COVID-19 pandemic has significantly accelerated existing trends, with profound long-term impacts on business, education, and society:

Business: The pandemic has favored big companies and big tech, particularly the "Four" (Amazon, Apple, Facebook, and Google) and Microsoft. Their market capitalization surged, and their influence expanded. The crisis has also highlighted the importance of strong balance sheets and low debt, as companies with these characteristics are better equipped to survive downturns. Remote work has become widespread, potentially leading to increased income inequality and a shift in job locations.

Education: Higher education is facing a crisis, with the pandemic accelerating its disruption. Online learning has become more prevalent, potentially leading to a more accessible and scalable education system. However, this shift could also exacerbate existing inequalities, as online education may benefit wealthier students more than those from lower-income backgrounds.

Society: The pandemic has exposed and accelerated societal issues, such as economic inequality, political polarization, and the importance of community and cooperation. It has also highlighted the need for a stronger government role in addressing these challenges. The potential long-term impacts include a more digitalized economy, a reevaluation of the role of big tech, and a renewed focus on community and collective action.

Big tech, particularly the "Four" (Amazon, Apple, Facebook, and Google), played a significant role in the pandemic. They accelerated trends like remote work and online shopping, benefiting from increased demand for their services. Amazon expanded delivery and cloud services, Apple capitalized on remote learning and entertainment, Facebook and Google maintained their advertising dominance, and Google and Facebook provided critical information and communication platforms.

Challenges include the potential for increased market dominance, reduced innovation, and exploitation of user data. Opportunities include advancements in healthcare (e.g., telemedicine), education (e.g., online learning), and sustainability (e.g., remote work reducing emissions). However, these opportunities must be balanced with addressing the challenges of big tech's power and influence.

The shift to remote work and the acceleration of the "Product Age" are reshaping the business landscape by prioritizing variable cost structures, fostering a culture of innovation, and emphasizing data-driven decision-making. Companies should adopt the following strategies to adapt:

  1. Embrace Variable Cost Structures: Optimize operations to reduce fixed costs and increase flexibility, such as adopting gig economy models and remote work arrangements.
  2. Focus on Product Quality: In the Product Age, prioritize product quality and innovation over brand image, as customers now value functionality and efficiency.
  3. Leverage Data and Analytics: Utilize data to understand customer needs and preferences, and to optimize operations and marketing strategies.
  4. Invest in Technology: Upgrade technology infrastructure to support remote work and enhance productivity, such as investing in communication tools and cybersecurity.
  5. Foster a Culture of Innovation: Encourage employees to think creatively and experiment with new ideas, fostering a culture that embraces change and continuous improvement.
  6. Expand Online Presence: Strengthen online offerings and customer engagement strategies to cater to the growing preference for digital experiences.
  7. Collaborate with Startups: Partner with startups to access new technologies and innovative solutions, fostering a collaborative ecosystem.
  8. Prioritize Employee Well-being: Ensure employee satisfaction and productivity by addressing remote work challenges, such as providing flexible work arrangements and mental health support.

The pandemic has accelerated the disruption of higher education, presenting both challenges and opportunities. Challenges include financial strain on institutions, particularly those reliant on in-person experiences, and the digital divide affecting access to online learning. Opportunities arise from the potential for cost reduction, increased access, and improved quality through technology adoption.

Reform could involve:

  1. Expanding Online Education: Embrace online platforms to reduce costs and increase accessibility, while improving technology and ensuring quality.
  2. Addressing the Digital Divide: Provide resources for students without reliable internet or devices, ensuring equitable access.
  3. Reevaluating Value Proposition: Shift focus from in-person experiences to outcomes, such as credentials and skills, to justify costs.
  4. Collaboration with Tech Companies: Partner with tech giants to leverage their resources and expertise for better educational tools and platforms.
  5. National Service Programs: Implement programs like the Corona Corps to engage young adults in service and education, fostering a sense of community and shared responsibility.

The pandemic has exposed and exacerbated several problems within capitalism. Firstly, it revealed the fragility of the economy, particularly for those with lower incomes, as they were more likely to be laid off or furloughed. Secondly, it highlighted the overreliance on big tech companies, which have grown more dominant and potentially less innovative due to their market power. Thirdly, the pandemic exacerbated inequality, as the wealthy saw their wealth increase while many others suffered economic losses.

To address these issues, several steps can be taken. First, reinvest in public services and infrastructure to ensure a more resilient economy. Second, enforce antitrust laws to promote competition and prevent monopolies. Third, implement progressive taxation to reduce wealth inequality. Fourth, invest in education and healthcare to improve social mobility. Finally, encourage community and cooperation by fostering a culture of shared responsibility and mutual support. These actions can help create a more equitable and sustainable society.

Reader Reviews

Loading comments...