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 shock to the economy. The terms external shock to the economy and as an 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 shocks to the economy. The view is presented that the Covid pandemic as an 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.