COVID 19 - The External Economic Shock: Changing the Business Models

Abstract

This essay examines the issue of changing business models as a result of the Covid pandemic, with an attention on business models in the tourism sector. A similar change is historically tangible after a massive external shock to the economy. The terms "external shock to the economy" and "pandemic" as an external economic shock have been clarified. The paper examines significant historical cases and periods in which a general and radical change took place, and the renewal of the business environment and business models as a result of external shocks to the economy. The view is presented that the Covid pandemic as an external shock is a catalyst for a change of environment and change of business models, leading to the forefront in the practice of new business models. The hypothesis of possible polar business models is considered, based on a summary of distant historical and recent experience in the specific business ecosystem and the algorithm of change. As a result of the study, it was concluded that the change, including in the business models including those in the tourism sector, will most likely require the implementation of self-created club beta versions and "ambidextrous" business models on the one hand and business models based on state entrepreneurship. Both polar business models are emerging from social trends.