Reference no: EM133672921

In the United States, the hospitality and transportation industries were hard hit, along with retail, oil and gas, live sports, and other forms of entertainment (Thompson, et al., 2021). Small businesses and low-margin industries, with little ability to weather a significant downturn, were particularly vulnerable (Thompson, et al., 2021). Some industries, such as health care, online retail, and delivery services, faced demand over their capabilities, especially due to supply chain breakdowns (Thompson, et al., 2021).

The character and strength of the competitive forces operating in an industry are never the same from one industry to another (Thompson, et al., 2021). The most powerful and widely used tool for diagnosing the principal competitive pressures in a market is the five forces framework (Thompson, et al., 2021). Porter 's "Five Forces Model" proposes that companies are not only competing with companies in the industry today (Jaya, P. E. J., & Yuliarmi, N. N., 2019). They can describe the business situation that is being carried out and can also help to know the advantages of the current and future competitive positions (Jaya, P. E. J., & Yuliarmi, N. N., 2019). So that companies can increase strength, anticipate weaknesses, and avoid companies making wrong decisions (Jaya, P. E. J., & Yuliarmi, N. N., 2019). The model consists of five main factors: (1) The bargaining power of suppliers (Bargaining power of suppliers); (2) Bargaining power of buyers; (3) Newcomer threats (Threat of new entrants); (4) Threat of substitute products (Threat of substitute product or service); and (5) Competition between companies in industry (Rivalry among existing firms) (Jaya, P. E. J., & Yuliarmi, N. N., 2019). Through the pandemic we all witnessed businesses of all sizes suffer and some even close their doors after generations of existence. Yet, those businesses with the ability to pivot and quickly change their current production to meet the needs of the consumer were those that survived. Our text mentions auto makers changing their production to ventilators and other companies changing to create medical supplies. However, even those who were able to make these changes had to rely on outside suppliers for materials to manufacture their products. In terms of a contemporary and extreme environment shock, the COVID-19 pandemic resulted in many business failures, alongside owners pivoting aspects of their business models to facilitate survival and/or enhance performance (Crick, J. et al., 2023). This environmental shock created uncertainty and the need for decision-makers to develop capabilities to address objectives and implement appropriate strategies (Crick, J. et al., 2023). The ability to transform certain operational capabilities to higher order key capabilities can help owners (Crick, J. et al., 2023). Specifically, to minimize risk, develop coping and pivoting strategies, foresight, and build resilience regarding operating in a dynamic environment, typified by the evolving COVID-19 period (Crick, J. et al., 2023).