In crisis created by the Iran war, survival won't be enough for businesses

“It has been hell, the likes of which I haven’t seen since Covid-19!” That is the common refrain of chief executive officers (CEOs) since the Iran war broke out four weeks ago. Costs rising and swinging, exchange rate impacts, scarce or erratic supply of vital raw materials, customers cancelling orders or calling incessantly for fulfilment, payment delays, supply chain bottlenecks, cash management issues, and the sheer uncertainty of what tomorrow might bring: These are problems CEOs and their teams have been grappling with 24x7 in the last four weeks. In a storm, organisations, like individuals, first react from their deepest survival impulses. Human beings run for shelter, they economise, they grab what they need, and they pray for help. Businesses do much the same. They scramble for resources, they put pressure on suppliers, raise prices, cut costs wherever possible, and run to the government and banks for support. This kind of response is necessary. But is it enough?

It is becoming clear that this storm may not pass quickly. Even when the war ends, the aftereffects on supply chains, consumer sentiment and government priorities could linger. What began as a crisis is now looking more like a medium-term leadership challenge.

There’s an apt saying: “A crisis is a terrible thing to waste.” Until now, many leaders have had little choice but to stay absorbed in daily firefighting. But this is also the moment to ask a harder question: When this storm passes, how does a business emerge not merely intact but stronger? Every situation is different, of course. But a few broad principles may help. First, keep the organisation’s purpose front and centre. In periods of disruption, leadership teams can become so consumed by defence that they stop looking for advantage. Yet almost every turbulent situation contains pockets of opportunity. Unless leaders consciously allow themselves to explore them, they remain invisible. Second, realise that this war is affecting all markets, competitors, “adjacents”, consumers and value chains. Your business is not in this alone. Just as you are struggling to secure supplies, seeing cost increases and managing upset customers, so is your competition, near and far. Distressed customers, too, are looking for alternatives. This realisation has two dimensions: Strategy and relationships. From a strategic standpoint, periods like this can change competition. Changes in affordability, risk tolerance, switching behaviour and channel economics can open up possibilities that would have been harder to access in calmer times.

A premium brand, for instance, may find customers wanting affordable options. That may justify entry into a lower-price segment, perhaps through a new brand or offering. Equally, consumers who bought brands even more premium than yours may now be considering what is “good enough”, creating headroom above you as well. A third perspective is that customers of your premium brand are likely buying many other such products. The reason they buy a premium brand could be trust or prestige or “risk reduction”, but the price they pay for those other products could be much higher. If your brand can offer the same emotional benefit to them, it becomes a more affordable way of “getting the job done”.

The same could be true for a discount brand. In every market, there is a ladder of affordability and value. When you look at it more laterally, there is potential to find new positions on your ladder or adjacent ladders that could be a new business opportunity. The same is true for markets. Today, customers in all countries face the same issues and could be open to alternatives. With the signing of recent trade deals with the European Union and the United Kingdom, this could be a perfect time to reach customers there with a relatively better deal than ever before, because they may be more open. Finally, each member of your value chain is also looking for better options, often desperately. Hence, by exploring where the possibilities could be to win with them preferentially and “knocking on their doors”, a new opportunity could open up.

Strategy is one side of seeking advantage. Relationships matter just as much. In stressful times, organisations can easily stumble here unless leadership sets a clear tone and backs it with action. Yet this is precisely the time to build trust, strengthen loyalty and deepen preference. It is also the time to win over those left dissatisfied by the behaviour of competitors. That is why leadership in such moments must extend beyond cost control and crisis management. It must also include sharper strategic sensing and greater relational maturity. The challenge is not only to keep the boat afloat; it is also to ask whether this storm is revealing new ways to swim — and perhaps even new waters worth entering. Don’t waste this crisis!

The writer is managing partner, RedVent Strategy & Design, a growth consultancy (These are the personal opinions of the writer. They do not necessarily reflect the views of www.business-standard.com or the Business Standard newspaper)

First Published: Mar 31 2026 | 2:13 PM IST Page URL :https://www.business-standard.com/economy/analysis/in-crisis-created-by-the-iranwar-survival-won-t-be-enough-for-businesses-126033100496_1.html