Shocks come in many forms.
Major shocks cause destruction and disruption but almost always present an element of opportunity – creative destruction. A new balance of power emerges, companies find they’re advantaged or disadvantaged in the aftermath – opportunity knocks – don’t wait for the dust to settle to take advantage of a good opportunity:
Three such shocks spring to mind:
Recent Changes to 457 Visas in Australia have seen a drastic drop in appetite for sponsored candidates from employers. Although the government has made assurances that the law changes will not affect the 95,000 skilled migrants currently in Australia, it has placed huge restriction on foreign workers gaining employment in Australia. For industries where there are chronic skill shortages (construction, engineering, surveying, medicine), this means it will be far more difficult to find scarce candidates.
The business opportunity for Recruitment companies is to offer solutions such as education on the law changes to provide clients with a list of available options, contractor and payroll solutions as approved sponsors, consultancy ahead of key dates for law changes, search solutions which target ex-pats coming home, etc.
Cyclone Debbie a category 4 cyclone and strongest cyclone to hit Australia since Cyclone Tracey in 1974 caused $2.4 billion damage to the Queensland Coast in March 2017. The damage effected homes, businesses and farms. roads, bridges and power lines.
In the aftermath, technology companies saw an opportunity to provide quick, easy damage assessment and documentation solutions which enabled reports to be generated easily and quickly to take advantage of funding grants to speed recovery and reconstruction. This was a major win for the technology business and a huge boost to the recovery of the region. The company seized the opportunity provided by a major shock.
Grenfell Tower block Fire, London a tragic fire in a 24-storey apartment block on the 14 June 2017 involving 79 fatalities. The fire has caused debate over who’s to blame with conjecture spanning Safety policy and procedure, the builder, the design consultant, the contractor, the government, et.al. No doubt the aftermath of the fire will cause investigation, review and change for the construction industry with particular emphasis on the failed fire safety test of the cladding which has been blamed for the rapid spread of the fire. Already, property portfolio managers are scrambling to remove similar cladding, the manufacturer of the cladding has stopped global sales of Reynobond PE cladding and the UK Government has mounted a national investigation into the use of potentially flammable cladding fitted to high-rise towers across the country.
The opportunity for businesses to support the investigation, replace existing panels and fit new ones, offer solutions for fire safety policy and procedure is huge, making it safer for all concerned, not just in the UK but globally.
By recognising ways which your business can offer solutions to problems in the wake of big shocks, you can take advantage of unique market conditions, stay ahead of the competition, and be part of the solution.
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