Introduction
The COVID-19 pandemic is, undoubtedly, one of the most terrible events and phenomena of the 21st century, as a result of which almost all public sectors have suffered. Moreover, coronavirus has hit both the economy and the business sector most painfully in practically every corner of the world. Following such “unfriendly” and unfavorable consequences, people began to make decisive attempts in response to an external threat and make several changes that could allow humanity to survive. Furthermore, such shifts cause improvement to some and deterioration to others. On the other hand, measures put in place to curb the spread of the virus during the pandemic have driven innovation and scientific progress. Thus, for example, one of the art centers in Saudi Arabia faced net losses due to the changes that occurred during the pandemic. However, according to Kumar and Pumera (2021), a business might save itself by upgrading its services and products to adapt to the new environment; otherwise, the interest will still be minimal. The COVID-19 pandemic has impacted the audio graphics, visuals, and print shop business, causing losses; however, expanding, re-investing, and keeping up with market trends might rekindle the income.
Consequences and Financial Position
One should note that 2020 has been a tough year for the audio, graphics, visuals, and print art center business to record low sales during several months. Considering the print shop income attained in 2020, that is 1,534,268; the months of April, November, and December recorded no income at all (Purba and Bimantara, 2020). Similarly, some SBU’s have reduced their orders for services, recording meager, non-productive incomes. Consequently, the main reason for expenses and losses is the SBU’s changing demand for printing services.
Furthermore, the audiovisual sector had to face some troubles in the form of withdrawal of funds and low demand and income from activities from the SBU’s. Thus, several SBU’s including PSAA, SPA, CATERING, and SGS, did not request any services throughout the year (Purba and Bimantara, 2020). The income experienced from the printing and audiovisual shops is relatively minimal compared to 2021, with gain experienced in 2021 as 3,911,283.81 while the outcome totaled 10,275,449.41. The difference is -6,364,165.60 and means significant losses for 2021 (Purba and Bimantara, 2020). In brief, the pandemic was able to affect the financial sector of the business to a greater extent in 2020, in comparison with subsequent years. This moment also occurred since the spread of the coronavirus was, to some extent, controlled and managed. At the same time, the business in audio, graphics, visual effects, and print art brought a little more income. Nonetheless, the art center business state was unable to achieve success among competitors, revenues do not exceed the proper “mark,” and the demand for goods and services, unfortunately, has sharply decreased.
Constraints and Limiting Factors
The audio graphics/visuals and print art center business has been relying on analog means of printing instead of shifting digitally with the current market trends in Saudi Arabia. Although analog printing technology holds many market shares in various sectors, digital technology assures adaptation with the current market. The COVID-19 pandemic caused the closure of museums, schools, shops, hotels, cancellation of events and other businesses reduced the order of printed materials. These materials include Business Card Letterhead, Certificate, Envelope, Menu cards, Memo pad, CD jacket Folders, Posters, Banners, Stamps, Stickers, Magazines, Books, Silkscreen Printing, Gifts, Sales Catalog, Menus covers, and many others (Alshammari et al., 2020). The printing volumes decreased in the audio graphics/visuals and print art center business lowering the business’s net income. Restrictions and lockdowns cut connections of people from shops physically. Hence, the only way to get to the customers is via the internet. The digital future of printing has to be adapted as the online strategy enables customers to contact the firm from anywhere globally. The printing business has to show improvement while still facing challenges.
Expected Outcomes and Results Planning
Coronavirus spread has propelled the packaging printing materials due to several reasons. Primarily, mass purchases tend to increase the number of online orders, requiring manufacturers to make solutions for additional packaging printed material. For example, the need to respond to the COVID-19 pandemic quickly and efficiently requires PPE manufacturers and medicine packaging to act fast. Both retail products ordered online, and medical products produced have increased demand in packaging printing materials. The digital printing industry assures more profit in the current market than traditional printing.
Since most employees worked from home during the pandemic, the audio graphics/visuals and print art center business lost physical contact with clients and could not convey the order request and documents appropriately. Most companies have adopted cloud-based systems to ensure the effective and efficient transfer of information. However, other sectors of the printing business are highly growing in the market. Hence, the printing of packaging materials is a significantly growing area due to the increase in demand for printed aesthetics by end-use firms, especially pharmaceuticals, beverage, and food firms (Nazir et al., 2021). The audio graphics/ visuals and print art center business should expand to this sector to attract the “flooded” market demanding packaging printing materials.
Furthermore, unlike other printing forms, digital printing does not involve a change in the printing plate. Digital printing, therefore, reduces costs and increases the turnaround time. The images produced by digital printers are of high quality and contain colorful graphics. It is easy to make changes later with digital marketing, making it quite flexible. The center will have higher revenues and be more efficient and effective with such an upgrade. Expansion of the audio graphics/visuals and print art center business to accommodate the current trend feature will increase profits as Saudi market demands are met (Galanakis et al., 2022). Therefore, the digital transformation will also attract our SBU’s to request our services more frequently.
SWOT
The company’s strength is that it is well known in the Saudi airlines and has a strong influence on the market in the region, especially to the 13 Saudi Business Units (SBU’s). The impact on the market will favor the art center after transformation to digital printing and after expanding for the packaging printing business. The customers in the region and their 13 SBU’s will be highly attracted to the current trends and flock in eyed of this scarce service. The advantages are that digital printing will be efficient and effective enough to satisfy the clients’ needs and earn the firm much higher profits.
The business weakness is that it did not adapt to the trends in the current market in time. This led to the loss of its major clients, Saudi airlines catering, who shifted from food menus to pdf-styled menus and videos. Most people and businesses have moved to the digital means of doing business. The print art center needs to ensure sales and contact its clients. The current trend and state of the economy might change after the pandemic, but most of the adapted innovations will still be of use. Since the new digital transformations are way more efficient, clients will most preferably want things done digitally (Haq et al., 2020). Consequently, the print art center should have information on market trends and utilize the opportunity to increase sales and regain profits.
When the world “transforms,” people also change, and it is up to business owners and entrepreneurs to keep up with these shifts. In this case, failure for any business to catch up with the demand of its buyers will lead to its downfall. Clients, therefore, refrain from the organization’s services for a more transformed enterprise (Nurunnabi, 2021). To ensure that clients have no options or second thoughts concerning the resources and services the company offers, the art center must deliver top-notch services and resources and gain control over the market.
SWOT Table
Recommendations
With the information on the market trend on digital printing and packaging printing material, the audio graphics, visuals and print art center business has a huge opportunity to take advantage of if well utilized. For instance, the art center’s owners should consider reinvesting and expanding the business in audio, graphics, and visuals while defending operation. Achieving these objectives will require the organization to plan and strategize on the location and finance. Moreover, the firm will realize the other significant factors such as the number of competitors, trending market pricing, machinery and workers needed, and additional market data.
The leaders should consider several moments when expanding business, such as the right opportunities available in the market, the technologies to support expansion and growth, and the tactics and plans to ensure the art center thrives in the long run and is inevitable to change. Attaining these results will require the audio graphics, visuals, and print art business to estimate $600,000 to USD 800,000 (Smart, 2020). There exist several markets for such digital printers in Saudi Arabia. For example, Amazon is among the best printer-selling sites in Saudi Arabia and worldwide (Printers, n.d.). The sellers are well trusted; they provide fair prices, warranty, and delivery.
The following recommendation assumes maintaining the current state of affairs, taking into account the needs of some “buyers.” Hence, the audio graphics, visuals, and print art center should gain some monetary funds, around $300,00 to purchase a single extra printing machine. The company will efficiently serve additional customers for this recommendation. More devices will help more people and provide services on time, avoiding lining up. Clients will be happy when the firm meets consumers’ needs and desires, creating a nice reputable name and attracting more customers. The money used to implement these changes will be evident with increased retainage of clients, increased income, and fast and timely results.
The final recommendation involves closing down the operation. It is necessary to outsource services to serve potential and current customers and conclude a contract with another organization. The idea will require a well-trusted company or enterprise with quality services. Outsourcing services will save the art center from buying machines and devices paying salaries and wages. However, the cost will be used to pay off the company. The firm will not lose much from the clients, and the hired company will provide quality services through the audio graphics/visuals and print business. Luckily, with this s strategy, the business will accept orders from other enterprises and expand from the current 13 SBU’s. Consequently, one should note that if successful in performing specific actions, a firm will increase its income while observing all market trends, requirements, and phenomena.
Conclusion
In conclusion, the COVID-19 pandemic caused a public outcry and stagnation in many sectors of the economy. Nevertheless, today many people have been able to find unusual ways and means of survival in such difficult conditions and mechanisms and tools to resist disappointing adversities. Hence, the audio, graphics, visuals, and print art center business must shift to digital and packaging printing materials, expansion, buying machines, minding clients’ needs, or outsourcing the services. Moreover, to achieve most of these transformations, the audio, graphics, visuals, and print art center business needs significant investments in projects. It is assumed that the transition to digital printing media will ensure continuous demand for the products and services provided. Therefore, the firm will have a unique chance to create those conditions and situations that ensure business and production’s timeliness, efficiency, and effectiveness.
References
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