Post Corona
Scott Galloway
15 min
7 Key Points
4.3 RateWhat's inside?
Explore the profound business and societal changes brought about by the pandemic, and learn how to seize the opportunities that lie in the post-Corona world.
You'll learn
1. How did COVID-19 shake up different industries?2. Business survival tips for the post-COVID world3. Spotting and grabbing opportunities after the pandemic4. Tech's role in the new normal5. A peek into the future of work, school, and health6. Gearing up for success in a post-COVID world.Key points
01Basically, those who already had a monopoly made the most money during the pandemic
Let's talk about the big fish in the pond - the tech giants like Apple, Google, Amazon, and Tesla. These guys have such a tight grip on their markets that they practically run the show. When the pandemic hit, a lot of businesses had to close their doors. But not these tech behemoths. They kept the wheels turning and even saw a surge in demand for their services. Think about it. With everyone stuck at home, Google's online services like Google Meet and Google Classroom became the new normal. And Amazon? It turned into our go-to for everything from groceries to gadgets, thanks to its massive online retail and delivery network. So, why did these companies make a killing during the pandemic? It's all about their monopoly. They've got the cash to ride out the storm and the infrastructure to meet the increased demand. Plus, they can easily crush any competition that dares to challenge them, either by buying them out or undercutting them. But there's more to it. These companies also have the system working in their favor. In the US, the rich get richer. They can use their financial muscle to sway policies and regulations, further cementing their monopoly. In a nutshell, the pandemic has thrown a spotlight on the power of these tech giants. It's shown us how their monopoly allows them to rake in the profits, even in a crisis. It's a wake-up call for us to recognize this problem and strive for a fairer market system.
02Big companies with lots of cash have an easier time controlling the market than smaller ones
Let's think of the business world as a vast sea, with companies as ships sailing on it. The big companies with deep pockets are like huge, well-equipped vessels. They've got the resources to weather storms, navigate tricky waters, and even expand their territory by gobbling up smaller ships. The smaller companies, on the other hand, are like tiny boats. They might be quick and innovative, but they don't have the resources to weather big storms or expand their territory much. This isn't just a fun analogy. It's a reality we've seen play out, especially during the COVID-19 pandemic. Many small businesses struggled to keep their heads above water due to lockdowns and a drop in consumer spending. But the big guys, like Amazon and Tesla, with their deep pockets, not only survived but thrived. They had the cash to invest in new tech, buy out struggling competitors, and strengthen their hold on the market. This trend of the big getting bigger isn't new. Over the past ten years, the market has increasingly favored companies with big ideas and growth potential over those just making a quick buck. This shift in market value has given even more power to cash-rich companies. They can use their high-value assets, low debt, and cheap debt to buy out smaller competitors and strengthen their hold on the market. For the little guys, staying afloat in this increasingly consolidated market often means leveraging their strongest assets. If a company's best asset is its brand, it needs to focus on strengthening and promoting that brand. If it's an innovative product, it needs to focus on improving and marketing that product. But survival also often means cutting costs, which can be tough and challenging. To illustrate this point, let's look at Tesla and General Motors in July 2020. Despite the global economic downturn, Tesla's stock was up 242%, while General Motors' stock was down 31%. This stark contrast shows how the market favors innovative, cash-rich companies like Tesla over traditional, profit-focused companies like General Motors. In the end, the point is that in the world after COVID-19, the gap between the big, cash-rich companies and the little guys is likely to get even wider. This trend has big implications for the future of business and the economy.
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03The government has a big say in who becomes a big player in the market
04Some companies have used the pandemic as an excuse to jack up prices without improving their products
05Schools are getting away with overcharging students because there's not enough oversight from private organizations
06The best way to fight against monopolies is to promote capitalism and competition
07Conclusion
About Scott Galloway
Scott Galloway is a professor at NYU Stern School of Business, specializing in brand strategy and digital marketing. He's also an entrepreneur, having founded several companies including L2, Red Envelope, and Prophet. Galloway is known for his insightful and often provocative commentary on technology and the economy.
