Services Marketing

MKT 627.1 
IT Firms Survival Strategy in COVID 19
 SUBMITTED TO:
Dr. Muhammad Sabbir Rahman (DSR)
Associate Professor
Department of Marketing and International Business
North South University

 Submitted By
Group-1 

Seria Name ID
l
12 Syeda Anika Bushra   183 5072 060

15 Wasif Mohammad Noor   183 5206 060

34 Taskin Sheril Pritom   193 5023 660

35 Rifat Hossain Khan   193 5134 660

20 Asfaque Gias   191 5190 660
Date of Submission: August 20 , 2020
Executive Summary 
(150 Words)
Purpose Aim of case study
Method you applied
How many companies are taken into consideration?
Findings
Recommendation, 
Benefits 

Executive Summary ( Aim, method, findings and recommendation- 150-200 words)

 Table of Contents
1. Background of Case Study 1

2. Problem Statement 3
Firm’s Business Agility: 3
Marketing Operational Effectiveness 3
Optimization of Innovation Capability 4
Managing Employees Satisfaction 4
Re-think Customer Experience 5
Firm Survival Strategy 5

3. Case Objective 6

4. Case Question 7

5. Identify the Solution 7

6. Methodology 8

7. Data Analysis 8

8. Implications and Implementation 11

9. Conclusion 12

10. Reference 13
1. Background of Case Study

2020’s pandemic is the ongoing global pandemic due to the coronavirus disease. After that
outbreak, businesses are facing new challenges. Covid-19 strikes hard in the service industry. It
already created social, economic, political and different crisis that will leave us with scars in our
mind. Contributions of the service sector experienced major changes in the economy of
Bangladesh along with the industry and agricultural sector. IT firms play a crucial role in
fulfilling the dreams of middle class peoples of Bangladesh as an aspirational career.

Currently, Bangladesh is the one of the most affected countries in their region. According to the
data published by the Directorate General of Health Services, the situation of this pandemic in
Bangladesh: First three positive cases were identified by the IEDCR on 8 March. Total new
infected 285091 and cure: 166738 (20 August, DGHS)

COVID-19 impact on IT firms of Bangladesh: IT firms are facing huge challenges. There is also
uncertainty in their business strategy due to the change of market and customer psychology.
Firms are struggling with existing workforce. Also lack of funds or finance seizes the IT firms
business and daily operational opportunities.

This pandemic has caused the economic slowdown. The IT services market is expected to be
affected. It is also expected that IT based services and contracts like; consulting services,
applications, security services and network services will be able to generate good amounts of
revenue by the end of the calendar year. In COVID-19 outbreak, application development,
systems integration management, IT outsourcing, network management etc. type IT services are
expected to reduce for short-term. Bangladeshi IT firms have faced project cancellations by
foreign and local clients due to limited air travel and lockdown of cities. So, now requiring more
cloud based services through IT applications. The IT industry is also witnessing the pressure on
new contracts and pricing from general consumers. (5 May, News 18)

World’s greatest cities are not able to survive because people stay indoors and businesses; shops,
theatres, restaurants are closing across the world. People are losing their jobs and income. And
they have no idea when they will normally return with their jobs and money. According to the
data published by the ILO, Businesses terminate around 25 million jobs. (Country Response,
UNDP) Pandemic situation already hurls IT firms into an unwanted crisis. It has shut down
business operations which negatively impact the supply chains of firms. Businesses in IT sectors,
around the world are facing huge contractions in their operations. (April 23 2020, The Financial
Express) People have lost earnings. This increases the people who are living below the poverty
line. Bangladesh may face economic recession like 2008-2009 global recessions. Those who lost
their jobs abroad, have returned to Bangladesh. And the number is quite surprising. Around eight
to ten lac people have returned to Bangladesh.

Even during this pandemic, corruption is happening in different businesses and services. Like;
Public representatives are stealing from the government relief. This negatively affects the socio
economic goals of a country. (23 July 2020, the Business Standard) Financial institutions are
facing a real tough time. Because of their tough time and new challenge, other firms are not
getting enough help from them for their economic stability. Many IT service firms are facing
financing problems of their projects and it creates a long-term threat to the stability of the IT
industry and overall economy. (July, 2020, The Business Standard)

For analyzing the IT firm’s effect and survival plan in this crisis situation, we conducted a survey
on a few business related issues.

Business Agility: Agility based information helps us to know the ability of the IT firms, how they
respond to the changes and their capability to deliver value internally and externally. Ex. IT
firms use business intelligence in their operation.
 Marketing Operational Effectiveness: Operational effectiveness shows how much
resources required doing the IT firms marketing operations in response to the results of
their operations. Ex. Adopt a new HR strategy.
 Optimization of Innovation Capability: Survey data helps us to know the IT firms ability
to figure out new ideas and how they transfer those new ideas into new services that
ultimately benefit the firms. Ex. Handling various customer needs with innovative
solutions.
 Managing Employees Satisfaction: Survey data also gives information whether
employees of IT firms are happy with their jobs or not. Ex. When firms provide PPE to
their employees.
 Re-think Customer Experience: Design new operations on pandemic situations are more
important than following the previous design. Ex. Previously, firms support their
customers physically, now delivering support through their online platforms.
 Firm Survival Strategy: Survey also conducted on how IT firms are getting through the
crisis situation. Ex. New strategy for incrementing cash flow and cutting unnecessary
costs on critical conditions.

So, the current situation is very disastrous for IT firms which are beyond their control but our
collected data says firms have potential to survive for the long run. 

2. Problem Statement
Let us look into the factors that are affecting IT Firms Survival Strategy in COVID 19 period.

Firm’s Business Agility:

Since the industry we have taken into consideration are the service firms, their adaptability is
very crucial in dealing with the COVID 19 pandemic. Firstly, a firm should be able to produce a
variety of quality services on a small scale with no extra cost since due to the pandemic as
human mobility is restricted in many areas so adaptability is crucial. Secondly, a firm needs to
have the adaptability to reduce operational vulnerability to adapt to the pandemic impact, and
learn from a crisis so in future those methods can be followed to minimise loss of revenue.
Thirdly, due to the pandemic, lots of services have become obsolete, so an IT firm needs to have
the ability to offer and deliver new services for access to new business opportunities. Fourth, the
firm, in terms of employee, resources should be ready to adapt to the changes based on the
current situation. Finally, a firm should be able to take control of its process, employees and
tools in crisis situations to minimise damages in crisis situations.
Marketing Operational Effectiveness
For an IT firm, brand awareness is also crucial just like any other company. And awareness
directly acts on the revenue of the company after the quality of services. Firstly, the firm should
have the potential to reach remote areas to look for new opportunities. Secondly, advertising
campaigns need to be launched by forms to increase awareness which will in turn bring in
revenue for the firm. Thirdly, for the global lockdown, the firm should have the ability to
strategize on how to communicate online with its customers and internal employees. Fourth, the
firm should be flexible in adapting to work from home culture for its employees. Finally, the
firm should have active participation in CSR activities for the betterment of the stakeholders.

Optimization of Innovation Capability

Research is crucial in this era of globalization and each and every IT firm should be up to date in
terms of technology so that, firstly, the employees can be efficient in innovation and come up
with radical solutions for the customers. Secondly, the firm should be able to introduce new
services in its product line as ‘Must be Quality’ then can be ‘Indifferent Quality’ now. Secondly,
the firm should be open to new service development in order to meet the needs of the customers.
Thirdly, the firm should have the resources to solve customers’ current problems in an effective
and efficient manner. Fourthly, the firm should deliver unique services from its competitors to
maintain excellence, Lastly the firm needs to be versatile and adaptable to a wide range of
customers. 

Managing Employees Satisfaction

The core members of an IT firm are its employees, they are the brain of the organization.
Employee satisfaction plays a key role in the cervical strategy of employees in crisis situations.
Firstly, the firm should attain strategies for employees to work from remote locations to maintain
lockdown in the pandemic. Secondly roster should be maintained so that employees can maintain
work life balance. Thirdly, firms need to educate its employees on the precautionary measures
that needs to be taken during this pandemic crisis for their safety, Fourthly, to keep up the
motivational factors of the employees the firm needs to manage mental health of staff actively.
Lastly, they need privacy safety equipment to ensure that there are no health risks in this
pandemic crisis when employees are active with office work.  

Re-think Customer Experience

‘Awareness is the key’, and positive awareness will help the form have a positive image to its
stakeholders. Firstly, the firm needs to ensure positive customer perception. Secondly, the firm
needs to play an active role to educate its internal and external customers on how to protect
themselves and loved ones in this pandemic crisis. Thirdly, the firm must ensure that they have
sufficient resources so that they can always maintain a ‘Wow Factor’ to its stakeholders.
Fourthly, the firm should have the ability to conduct primary and secondary research to know
customers' perception to deliver what is wanted and when it is wanted. Lastly the firm needs to
strategize how to entice customers to attain their services.
Firm Survival Strategy

From many prospective strategies, we streamlined them down into six strategies that a firm can
take in order to survive in this pandemic crisis. The firm can take cost cutting measures to
survive in the short run but must come up with long term strategies. Secondly, the firm needs to
continue with regular output in a pandemic crisis. Thirdly, the firm should have the ability to
take in the financial hit from this crisis situation. Fourthly the firm needs to perceive the
customers' needs beforehand. Fifthly, the firm needs to be responsive to consumers queries
efficiently and effectively. Lastly, the firm responds to consumers' needs quickly.

The above are the specific issues with respect to their causes and factors, describing the link to
the solutions as explained in the next section.

3. Case Objective

 The objective of the case is to:

Understand whether a company can survive or re-habitat itself during the COVID-19 pandemic
by making production with as much cost as possible

To explore the different areas of marketing strategies and bring out different aspects of
marketing strategies through which companies can understand the effectiveness of their
marketing strategies.

To explore the application of business innovation capability to survive in COVID-19

To understand the effectiveness of the employees’ level of satisfaction during the Covid-19.

To explore how to think differently to understand the perspective of the customers during the
pandemic and how to move along with it.

Lastly, to understand how firms could survive by bringing out different strategies during the
COVID-19 pandemic.

If we summarize the objectives of the case, it is to understand the overall aspects of how
companies can survive or will survive during this COVID-19 pandemic. These can be illustrated
by exploring the effects of companies changing themselves and the way they work during this
situation. However, it is also being tried to understand how companies adapt themselves with the
change of consumer's perception and also to maintain employee satisfaction by adapting and if
needed changing different marketing strategies to bring out the maximum output with the
minimum cost possible.

4. Case Question
 After deriving the case objectives, some case questions come to light to align with this survey
and the whole point to do the survey. These questions may be able to help find out the solution,
in some cases, how to implicate the solution and how to focus on the firms’ innovation
capabilities to tackle the current situation.
Ø  How is a company capable of producing as much as possible as before the pandemic? Will it have
the same quality product?

Ø  What service marketing strategies will be in aid to fight this? Some examples could be gap
analysis, dimensions of service quality etc

Ø  How a company will explore the business innovation capability?  Will it be ready for an
innovative way?

Ø  If there are as much as production as before and the innovation capability, how much would it be
reasonable to hold the employees’ satisfaction?, will it also be as before or have some extra
precautions with care?

Ø  If all those questions are answered satisfactorily, will it be finding out if customers are also
satisfied as before? What measures are going to be taken alternatively to show the most
consideration and undivided attention to the customers? Will it be enough to uphold the
consumer loyalty, satisfaction and retention?

Ø  A manager should always think, sense and feel. So what will be the forecast of all these answers
of the questions above?

These case questions will be helpful to dig deeper to explain and find out the solution to the
problems for a firm that can go under situational based problems such as this pandemic.

5. Discussion
During a pandemic there are often confusions and rumors about the disease. People have access
to different sources to know ins and outs of the disease. Our survey focused on the key factors
such as business agility, marketing operational effectiveness, optimization on innovation
capability, managing employee satisfaction, re-thing customer experience and most important the
firm’s survival strategy. If we observe at the data analysis most given responses agreed to the
questions, mostly were should have and could have type situations. But what we need to do is
take action. We need to mobilize our action so the firms can survive. And strategically, we can
hope that could be nearly possible. We are in the midst of an unprecedented pandemic; we never
have witnessed this type of situation over a century. Although the global response has been
vigilant and focused, researches are conducted to explain and our understanding of the ultimate
impact of COVID-19 remains largely unknown. It is impossible to accurately predict the
trajectory of COVID-19 because of its rapidly evolving nature but some groups have recently
attempted to forecast using advanced modelling techniques. In China, to support the corona virus
ravaged economy many small and medium companies are thinking to use different ways to
survive the situation. Service sector is likely to be affected most because they have the pressure
to make the products as well as survive the pandemic. So the companies like IT firms should be
prepared to help both their employees and the customers through service. They should take the
necessary measures, surveys and precautions to associate the employees’ mental and physical
health. If needed, firms need to arrange focus groups online so that they can know the situation
of the service holders. They should find different ways to support their service. Generally, a firm
should grasp every possible tactic to satisfy both customers and employees. After getting the
datas from different firms, focusing on 7Ps, maintaining the dimensions of the services provided
(Assurance, Empathy, tangibility, reliability and responsiveness) and consumer evaluation
process for service will be much helpful.

6. Methodology

We used descriptive research, where we collected demographic and other qualitative

information. Our survey consisted of 31 graphic rating scale questions and 10 open-ended
questions. Our primary aim was to do market research by questionnaire from service firms
officials. We conducted a survey on 20 executives from 20 different organizations in the service
sector of Bangladesh.

Data collection was started from 14 July of 2020 and ended on 30 July of 2020. Due to the
pandemic situation, we were connected with respondents through online platforms; messenger
and e-mail. After collecting data we used 20 survey outcomes for further analysis. For analysis,
we used MS Excel. We entered data from survey outcomes then found out the graphic rating
scale questions average and findings along with the sections like; employee satisfaction,
operational effectiveness etc.

This methodology helped us to determine the cause and effect of IT firms survival in COVID-19
pandemic. 

7. Data Analysis

General Information

  i.            Total Number of 20 responses from officials of selected service firms.

response:

  ii.            Interviewees: Total 20 officials.

  iii.            IT firms: 4

  iv.   Type of Firms (Total number of selected service firm: 20)

 Figure 1: Ownership of firm

Figure 2: Interms of firm’s size

 Figure 3: Ownership

    v. Analysis of IT firm official’s response on each section

Sections Average Findings Comment

Results s

Firm’s Business Agility 3.75 Agree  

 
Marketing Operational Effectiveness
3.85 Agree Positive

Optimization of Innovation Capability

4.10 Strongly Agree

Managing Employees Satisfaction 4.10 Strongly Agree

Re-think Customer Experience 4.00 Agree

Firm Survival Strategy 3.83 Agree

We observe that the average answer of each section is greater than equal 3.75 (Agree), which
indicates the survey results Positive. Our selected IT firms are using good tactics for their
operations and these highly satisfy their customers and employees. 

8. Implications and Implementation

Firm’s Business Agility is a big factor when considering the current situation that the firms are
in. However, with the survey result that we received most the officials do agree with all the
questions. In order to captivate the situation, the first should be able to produce quality full
products/services with no extra cost. These they can do with improving the relationship within
the employees and also by introducing loyalty programs for the customers. However, according
to the 7Ps one of the ‘P’ is people which indicates the people within the firm. Making sure the
employees are satisfied with the work they are working will bring in more productivity without
introducing new costs. And, making sure that the customers are also loyal to the company or the
firm will bring in more positive feedback for the company as well. As a matter of fact, the firms
must act strategically to bring in more strategic marketing aspects into focus within the
company’s perspective.
When it’s all about the marketing operational effectiveness of the company, firms must be able
to negotiate the cost of the marketing as well as bring in more new marketing concepts to the
company so as to reach to the potential customers with the minimum costs possible. These can
be done by reaching remote places with the use of technology and making sure that the company
knows what the customer needs before the customer actually tells. These can be done with online
surveys or going with the trend. However, considering the COVID-19 situations, bringing in
CSR (corporate social activities) will also bring in positive feedback for the company as well as
for the community as a whole.
Optimization of Innovation Capability is another concern that the officials are concerned about. 
As with the current situation innovation is the next best result for reaching out to customers to
meet the amount of quality empathy, reliability and assurance. However, firms must ensure that
the employees must increase their innovative capability. This can be done by allowing them to
think differently. As the firms will need to think strategically for their marketing needs these they
can do is to think of news ways of reaching customer with cutting-edge ideas to deliver product
or services which can be done with the help of technology or by allowing customers to interact
with the employees in an innovative way so as bring in customer loyalty and a new way to
introduce the company to the market. These increase the company’s image as well as might bring
in more customers for the firm itself.
When managing employee’s satisfaction, firms have to think of one of the P from 7P, which is
people, who are working for the firm. They have to make sure that the employees are not
working overtime during this pandemic; the working shifts should be divided. Psychiatrists are
needed to ensure that all employees’ mental health is stable. Meeting, group meeting sessions
and talk therapy between the psychiatrists are very much needed to bring more positivity among
the employees. Firms have to ensure that the protective gears, masks, gowns, gloves, goggles are
in hand and can be supplied whenever needed to ensure the employees of their protection against
the pandemic. These will help the firm to manage the satisfaction of the employees, which will
create a positive atmosphere in the work space. Also, employees can work stress free and in a
sound mind as they have advice from psychiatrists and protection.
While re-thinking customer experience, firms have to think largely about their customers. Their
feedback, preferences are very much needed for the firm to bring new ideas to light. Firms need
to introduce training, mostly educational, for the employees on how to give feedback to the
customer’s experience; the feedback is very much needed for the firm. On the other hand, a short
training for the customer should also be introduced on how to give proper, in detail feedback.
They also have to encourage their customers on their online platform, as online reviews;
suggestions are most effective now a day. Also, firms require resources to co-create superior
customer experiences, which will help the firm to improve their services and to give ideas on
what things to improve. And lastly, firms must have the capability to understand their customer’s
preferences during this difficult time. The information given in this time is very much useful for
future pandemic situations and the data gathered will be very much needed.

9. Conclusion

Covid 19 made the whole world business to adopt new ideas, new ways to do business. IT firms
all over the world also have to change their business strategy, coming up with long time
strategies to survive. New innovative ways to approach customers, their feedback is very much
needed now. Firms are now more concerned with their employee’s health, both psychical and
mental. The solutions and implementations in this paper can help an IT firm to survive this
pandemic situation, along with how to direct the employees, what to do and what not to do right
now. The data and information gathered here are taken from people who are also facing this
pandemic situation. Survival is now the main focus of IT firms in this tough time. 

10. Reference
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