05/2020 – « The post-Corona-Scenario » (Corona-Part 2)

Contrary to what Chancellor Merkel said, thinking – even or especially – must not be forbidden in times of crisis: What is the exit scenario after the shutdown of the German economy?

Without getting into the ethical discussion:” what is more valuable: a functioning economy or X Corona death?”, a revival scenario could look like this:

– Prio #1
Businesses will be relieved of tax and VAT will be at least halved

– Prio #2
The companies prioritize the existing orders that have not yet been processed (or partially) in order to get production and sales going

– Prio #3
Company sales will be strengthened in order to realize potential orders or generate new orders: b2c will be easier than b2b

– Prio #4
Pre-marketing focuses on the domestic market, as the international markets have collapsed – here on those industries and functions that can be classified as “Corona winners

– Prio #5
After the domestic market, the Far Eastern market is served, as here the corona effects (in comparison to Europe and the USA) were successfully combated at the earliest

– Prio #6
Parallel to internationalization step #5, value must be placed on internal processes and systems, focusing on innovation within a pragmatic step-by-step approach: new digital systems (internal processes, such as artificial intelligence) are introduced and innovative products / services are developed to efficiently serve new sales channels

– Prio #7
The strategic margin policy will hardly change, as the German economy can temporarily use its competitive advantage until the international economy starts up

We assume that the German economy will be in a recovery period of at least 6 to 12 months before it is possible to cover costs again.

May 2020