Market Sector:

1. Difficulty in Planning Capital Expenditures on Power Industry

- We cannot deny the fact that some firms, most especially those multinational corporations
and cyclical companies, are highly concerned about the geopolitical consequences
particularly in relation to China and the United States, which is making it harder to plan
capital expenditures in areas where generating a decent return on capital is already tough.
COVID-19 Pandemic is a phenomenon no one had ever expected to happen even in their
wildest dreams because the last recorded deadly pandemic was at least 100 years ago.
Moreover, due to this phenomenon, it has caused a drop in worldwide power consumption,
causing developers to put new projects on hold for the time being. As long as shutdown
limitations stay in place, demand is projected to remain below average, requiring utilities to
rethink their capital spending plans. And here is the recent conducted survey of the year
2021.

Retrieve from: https://www.power-technology.com/news/covid-19-impact-on-power-capital-

expenditure-to-be-high/

The study, including its analysis, is based on 499 replies received between May 1
and June 1 of the previous year (2021). Another recent survey on the site revealed that the
majority of respondents believe capacity expansions, particularly in the non-renewable
sector, will decrease. Now, pondering and contemplating more with this illustration a person
will definitely say that this is such a great catastrophe brought about by the pandemic itself
most particularly in our country which belongs to the tropical region. Actually, this is indeed
a threat and we are now currently experiencing its effects, right? For instance, the continuous
increase of kilowatts per hour nowadays that all of the Filipinos are experiencing today and
why is this happening? It is primarily because of the limited or inadequate Capital
expenditure on Power Industry. Due of the COVID-19 outbreak, utilities have had to
 downsize their employees and enforce tight sanitation requirements. According to
PricewaterhouseCoopers, low demand as a result of global lockdown limitations has faced
utilities with technical issues like as maintaining voltage levels, reactive levels, and
preventing reactive shunts. With all of these that had been stated, the main problem here
relating to economic globalism which we had fully understood in the module that tackles
about free movements of goods, capital, services, technology and information, is that as
utilities try to focus more on managing cash to support smooth operations in the uncertain
environment that may result for them to prioritize first the deferring investments and
maintaining capital expenditures at pre-pandemic levels, this will lead that in the future
periods utilities may focus on further decreasing capital expenditures as economic conditions
change which then will have two possibilities; first is the optimistic view and that is to
increase the fund and budget as the pandemic slowly subside and turns into an endemic
which will then be a good start to boost the planning capital expenditures for power
supplying industries or corporations. Or in contrast, the other way around which will
continuously decrease the allotted capital expenditure made by power industry themselves
and there’s no way they can avoid it because this is the only choice, they have at the moment
due to strict regulations that needs to be followed.

Regarding on how to utilize this problem’s economic concept in relation to contemporary

world, first and foremost we are now in a modern era where technological activities are are
part of our daily lives now. The primary economic concepts present in this problem are
supply and demand and cost and benefits. The demand is there because during this past two
years all the people are staying at their own respective homes because of the threat of Corona
Virus which is a highly contagious disease, only certain individuals are allowed to go outside
meaning almost all the households all over the world are using electricity and power to
survive. However, due to decrease in capital expenditure which is considered as part of the
concept of cost and benefits, some power companies are forced to leave the industry for the
mean time and allow some major power supplying corporations for the moment to dominate
the industry in this case thinning of power supply is becoming one of the major concerns of
the consumers because there are several power outages occurring around the country and,
most likely, worldwide.

Marketing Problems:

2.  Challenge in managing shifting priorities and strategies

- Several old economy or offline firms are finally realizing the need of having a comprehensive
internet presence. As a result of the multiple cost structures associated with sustaining a
legacy store, or branch network, while also supporting a rising online company, these
organizations will face severe profit margin pressure. This might put firms at a cost
 significant disadvantage to digitally native enterprises. Throughout the COVID-19 crisis,
retailers have been under a lot of pressure, since top-line sales and earnings in numerous
product sectors have fallen. The requirement for organizations to transition to a virtual
customer experience model emphasizes the need of marketing executives continuing to
embrace technology. The difference between marketing companies that flourish and those
that are continuously in triage will be how well they employ technology to provide a holistic
digital-purchasing experience. Additionally, at a period of turnover, the ability to analyze
and report analytics across consumer touchpoints will become important for demonstrating
marketing effectiveness for offline businesses or what we call the on-site offering goods and
services businesses. One best example of this is for instance, businesses that were intending
to attend or sponsor trade exhibitions, conferences, or other events had to immediately pivot
to virtual events, or brands that had large initiatives in the works had to put them on hold for
the time being, or rework them with a lower team or budget. The illustration below will
show the result of the survey with regards to this specific dilemma or challenge relating to
marketing strategies.

Retrieve from: https://welcomesoftware.com/insights/impact-of-coronavirus-on-marketing-

teams/

As to what we can observed in the survey result above, as strategies changed and evolved in
response to the pandemic, marketing teams faced plenty of unexpected obstacles. In fact,
handling shifting objectives or strategies was named the top problem by 52 % of survey
respondents. The survey's findings create a compelling narrative. The effect of the coronavirus
has quickly shifted marketing goals and finances. During this pandemic, marketing is more
challenging than ever. Marketers are attempting to change their implementation plans and find
the time and resources to launch new campaigns and create new content.

Now, relating and using this problem’s concept which represents an economic concept to
contemporary world, I can say that this problems concept is somehow included in rampant
increase in digitalization which we can incorporate in the initiative concept of economic in the
part of the customers or consumers, right? This problem is incorporated in the initiative concept
of economic globalization in such a way that it lacks initiative that will catch the attention and
interest if the consumer. In what way? In a way that everything nowadays is limited to virtual
events and what does that mean? It means that instead of people experiencing the actual
advertisement of a brand, they are restricted to just see it online without experiencing the feeling
itself just like in my example in the abovementioned scenario of trade exhibition. How could a
consumer actually enjoy the event made by a particular brand as their marketing strategy if they
can only see it on screen. So, in this case the management of the company or an organization
must think of a way on how they can let the consumers to experience the event as if they are in
the reception themselves for this one they can try the “Virtual Reality Technology” but what if
the company is not an established company yet? And their fund is just limited? And their target
customers are those in middle class? How they can afford it? With these, managing shifting
priorities and strategies is indeed one of the emerging challenges faced by different business sector
nowadays most specially that we are in a situation where one must carefully consider how to stay on track
and avoid falling behind, or else one's business would come to a complete halt.