By: CJ HALTER
Covid-19 has impacted the world in many ways over the past six months. Although most businesses have been affected negatively, some have actually been positively impacted by Covid-19. Businesses that have been affected negatively mostly include fashion and beauty companies, one business in particular is Nike. Some businesses affected positively include Netflix and Amazon. Some of the ways businesses are impacted is by gaining or losing consumers, pauses in production, and the amount of workers being laid off or hired are a few examples.
Netflix has had a large gain in subscriptions over the past 6 months. Sixteen million new subscribers to be exact. This has made the company 144,000,000 more dollars a month. This, under normal circumstances, would mean more money to produce new shows and movies. However, because of Covid-19, production on almost all Netflix original series have been slowed or even stopped. So yes, Netflix has made a lot of money and gained a lot of new subscribers, but how many people will continue to pay the monthly fees for Netflix if they aren’t producing new shows?
Like Netflix, Amazon has also been benefiting from Covid-19. Since less and less Americans are leaving their houses to buy groceries or other household items Amazon has had a very large increase in sales. Amazon’s chief executive, Jeff Bezos, has stated that the increase in quarterly sales was up 26%. This increase would mean a lot of money for any business, especially a multi-billion dollar one. Amazon has also planned to hire 100,000 new workers because of increased sales. Although the increase in sales raised quarterly profit, it also came with the needed increase in Amazon’s stock. This isn’t a huge problem now but at the start of the Covid-19 outbreak it was a large problem, and Amazon was running out of essential items.
Not all businesses benefited from Covid-19. Nike has faced a large loss in sales which is a large loss in profit. In early March more developments arose, as the company temporarily closed both its global headquarters in Beaverton, Oregon, and its European headquarters in the Netherlands. Geeta Gupta, a Nike strategy leader, has said “Nike has temporarily closed about half of (its) company-owned stores and stores managed by partners in China,”. This is not a good outcome for Nike because 17% of Nike’s revenue comes from China. About 20% of Nike products are produced there as well.