1. Introduction

In many countries around the world, the costs of everyday goods and services are getting more expensive due to these global crises. The fact that there is low production and high demand it is affecting the costs, and this makes life more difficult for many companies in the worldwide. For instance, to afford groceries, gas and energy bills or rent. “Cost-of-living” is a term coined by economists for the amount of money needed to maintain a certain quality of life, while paying for housing, food, taxes and healthcare. In many parts of the world, the cost of living has spiked, leaving people unable to maintain their quality of life.

In this work we are going to explain how companies should react on this current situation by implementing some strategies on how to overcome current crises. And we know well that main crises are: pandemic covid-19, and Russia vs. Ukraine War.  “The future depends on what you do today.” It is this famous line of Mahatma Gandhi that Martin Schwenk, MD & CEO of Mercedes-Benz India, had quoted during a recent town hall meeting with his colleagues. This quote has so much meaning to me because it clearly implies that if we do not stand together now, we will not be strong in the future. Mercedes Company came up with two good strategies to overcome covid-19 crises which was, digital marketing and the strategy of awarding labours to work at there houses.

2. Key definitions and main characteristics of some strategies companies should use.

A digital strategy is a company's approach to using technology, like computers, mobile devices and internet services, to grow their business. This plan can help them to reach customers, increase sales and showcase their brand effectively. A company may design and adjust its strategy based on market needs, popular technology or platforms and business performance (Indeed Editorial Team, 2021).

The law of supply and demand is the theory that prices are determined by the relationship between supply and demand. If the supply of a good or service outstrips the demand for it, prices will fall. If demand exceeds supply, prices will rise. The law of supply and demand is based on two other economic laws: the law of supply and the law of demand. The law of supply says that when prices rise, companies see more profit potential and increase the supply of goods and services. The law of demand states that as prices rise, customers buy less (David Luther, 2022)

In the digital strategy, there are six small steps to follow, the first is communication, updating the site if necessary, continuing your marketing efforts, working on online  presence, working on the next chapter and consumer feedback (Timothy De Ridder, 2020).

But E-commerce focussed businesses like Alibaba and JD.com seemed to do just fine through the SARS crisis in 2002 and 2003 they grew significantly. Amazon saw a remarkable increase of revenue after the financial crisis in 2008. And look where these companies are today. They really quickly filled the vacuum that other business created by not being able to service their customers as usual. These E-commerce giants were still reachable online while other companies were relying on more traditional ways of doing business (Timothy De Ridder, 25, 2020)

For case of Mercedes, before Covid struck, the company had targeted online sales accounting for 25 percent of the overall retail component by 2025. The momentum seen during the past weeks seems to indicate that this will now happen sooner than later. “Online will be an additional channel and behaviour patterns will also change to an extent with people spending more time at home. Customers will be comfortable if they are safe and secure, which means having their cars preferably delivered outside their apartments. Covid-19 has caused a great deal of paranoia. In this backdrop, “contactless experience” will be a big confidence booster, which means online consulting will be preferred “for everything, right from technical to commercial”. Yet, it is not as if this will completely take over the conventional buying experience. “We will get people back into showrooms for sure but the convenience of buying online from home will also gain traction as a trend” (Martin Schwenk, 2020).

The way for awarding workers system  

Marketing and other elements can be rebooted influenced with no agencies involved during launches since this will be done completely in-house with our own people, all this will give us the learning on how to move forward, it will challenge the way we have worked in the past and also to find a balance, in our products, supply chain decisions are mid- and long-term strategies, we rely on the Daimler global sourcing strategy (Martin Schwenk & Murali, 2020). This strategy is based on building parts in those countries where they are sold while sourcing “as much as we can in a viable way” through a global supply chain. While there are no two ways about the fact that Covid-19 has been a “severe and serious challenge”, According to Martin Schwenk  (2020), says, there have been other disasters that have occurred in the past, too, but life has still moved on. “The ability to manage tier 1/2 suppliers is highly developed in the auto industry,”. Even during Covid-19, for instance, it is not as if supply chains “are crumbling”, which pretty much means that it is possible to manage the situation even though it could lead to reprioritising a product or variant. “It is a mix between securing supplies and managing demand. They believed that using the human resources at home will help them to maintain the production.

5. Conclusion

Two strategies were suggested for companies to adopt. For them to react on these global crises. First was digital strategy. Second, awarding labours for working at their house. Based on these strategies which we developed above, we can now say that companies should apply these strategies, for them to face these global crises and maintain their position or even increase it in the market. As it was applied in Mercedes Company in India, Amazon and Alibaba. Companies should everyday think on how to innovate their operating system based on the situation occurred in the global so that they can survive in every situation.

 References

David & Luther (2022). Law of Supply and demand. International journal of supply and demand. 1 (1): 1-2

Indeed Editorial Team, (2021). Carreer Development, https://www.indeed.com/career- advice/career-development 2 (1): 2-5

Martin Schwenk (2020). Businessline At Mercedes, digital is key amid the Pandemic in Indian.

Mahatma Gandhi (2020). © Source: https://www.quotespedia.org/authors/m/mahatma-gandhi/the-future-depends-on-what-you-do-today-mahatma-gandhi/https://www.quotespedia.org/

Timothy., D& Ridder., L. (2011). Procedia-Social and Behavioural Sciences. E-commerce as alternative strategy recovery from recession htts://www.sciencedirect./science/ 24 (1): 247-259