Businesses need to gear up for digital transformation, cost reduction, cross-industry expansion and preparation for incoming related laws as a way to speed their recovery and explore new opportunities in the post-pandemic period, says the Bluebik Group consultancy.
Speaking at an online press briefing on Thursday, chief executive Pochara Arayakarnkul said Thailand's service sector, a key revenue driver for the country, has taken a serious hit from the coronavirus crisis.
During the crisis, Thai tourism saw a 59% drop in revenue compared with last year. Thai export value fell 22.5% in May, the largest drop in the same period over the past four years.
The number of companies facing insufficient liquidity has soared to 18.4%.
As the pandemic flared, Thai consumers became more digital-oriented, with 82% of internet users making online purchase and e-commerce sales seeing a 35% surge during the crisis.
"This creates the opportunity for new players in this emerging market gap," Mr Pochara said.
As customers gravitate towards online platforms, e-commerce and related businesses are rising rapidly, he said. When consumers are accustomed to the digital platform, entrepreneurs will have more opportunity to reach out to customers online.
Corporations will need to implement digital transformation in order to reduce costs and boost operational convenience, such as storing documents in soft files and using video conference apps and collaboration tools.
They should turn fixed costs into variable costs, such as outsourcing services provided by external vendors, Mr Pochara said.
Big companies should expand business both vertically and horizontally, via mergers and acquisitions and by forming cross-industry alliances, he said. Such approaches will help increase profit margin and market share while reducing costs in line with economies of scale.
Mr Pochara said cross-industry expansion will increase information exchange and the customer base from various industries, as well as foster synergy to boost each other's strength.
Additionally, businesses must prepare for the upcoming enforcement of laws such as the Personal Data Protection Act, as applying PDPA requirements will bolster companies' credibility.
Businesses also need to take into account data governance principles and have a business continuity plan in place.
Mr Pochara said businesses that are not ready to apply technological features to their operations should ask an assistant or a consultant to help.
