The Event Management Business in the Crisis

With the start of 2007 the event management business was one of the leading business categories in the world, events were the trend. A look at the event management companies during that time will reveal interesting facts such as ridicules pricing for events, although costs are not much affected, and the working companies in the business are of 3 levels large, medium and small companies.

With the start of the world economic crisis, companies have started implementing cost cutting strategies. Event management as a business was affected by such strategies, business opportunities are less than before, less fish in the pond.

This new situation has forced the event management companies into implementing strategies of reducing costs themselves, simply decreasing the prices of their services. This was a very good step at the first glimpse, but looking thoroughly it had its side effects that has started to take place and will still go on for the next 6 months. Large companies reducing their prices to make up for the loses in business by increasing the number of jobs in hand, most of them took this decision without a proper study so some of them started to see loses now, the reduced prices, but not costs, or reduced prices by reducing costs affecting the quality of the work. Small companies, the biggest loser in the situation, when the large companies reduced their prices, this had a direct effect on the small companies, resulting into a lot of closure of most of them in the United Arab Emirates as well as other countries in the world, they lost their bargaining power, price. For the medium-size companies, they are the only winner in the business, their chances suddenly became better, they have the experience in cost-effective events with very good quality service.

One of the other factors in the above situation as well, the fact that clients of the business are themselves looking for more competitors to pitch for their business. That was because of two factors, one is getting better price and saving money, second factor is looking for new minds, new ideas to run their events for better results. For clients, money is important but new fresh ideas were of the same importance to them. And the lucky winner was as well the medium size companies.

This was the time of the rise of the medium-sized companies, for the smart ones whom have the intelligence to see through the dark curtain of the crisis and see the benefits of it.

Large size companies were affected and have taken the steps to adjust to the crisis but they do not have the experience, the effects of their actions will be seen within the next 6 months.