The Effect of Global Crisis on Local Business

COVID-19 has shined a light on how a global crisis can wreak havoc on a local business. But it doesn’t take a global pandemic to feel the effect of an event on the other side of the globe. We live in a world where a global supply chain is the norm, and geopolitical issues can throw a wrench into your business plan even if you don’t have an office on another continent. Following a magnitude 9 earthquake in 2011, a 50-foot tsunami caused the meltdown of three nuclear reactors in Fukushima, Japan killing 19,000 people and destroying or damaging over a million buildings. This triple disaster was devastating to Japan, and the ripple effects could be felt around the globe. For example, at that time, my agency was working with a golf shaft manufacturer whose supply chain was disrupted. This impacted their ability to fill orders to their dealers which led to a decline in sales for both, and less money to spend on marketing and advertising (us). rnIt wasn’t just the manufacturer whose business was impacted, it was also the dealers, the agency, the advertising outlets, etc. and that was just one company out of thousands.rnThere was a ripple effect felt on the entire global business ecosystem.rnSometimes it’s politics that get in the way. I was all set to work with a Russian vodka brand looking to launch its product on the U.S. West Coast. We had done the research, put together a strategy, and laid out an integrated marketing plan, complete with Ukrainian folk dancers ready to bust out the Cossack Hopak in the middle of bustling dance floors.rnWe were ready, it was going to be our coolest project yet.rnThen we got the call. Tensions between the U.S. and Russia had suddenly worsened. The head office in Russia pulled the plug on all US promotions, and we got the rug pulled out from under us. For more information please visit- https://ligerpartners.com/the-effect-of-global-crisis-on-local-business/