Crisis Management: Dealing with a Product Crisis

            
 
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Case Details:

Case Code : MKTG182
Case Length : 11 Pages
Period : 2006-2007
Pub Date : 2008
Teaching Note :Not Available
Organization : Nokia Corporation; Bausch & Lomb; Mattel Inc.
Industry : Telecom; Eye Care; Toys
Countries : Europe, USA, Asia

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.



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Caselet 1: Nokia's Bl-5c Battery Fiasco

"By reacting swiftly and responsibly, and by being fully transparent, we believe that consumers will continue to view Nokia as a responsible and trustworthy brand."1

- Robert Andersson, Head, Customer and Market Operations, Corporation2, in 2007.

Finland-based Nokia Corporation (Nokia) has made connectivity truly ubiquitous. It has emerged as a world leader in mobile technology, progressively moving towards the company's vision of creating a world where everyone is connected.

For FY2006, the company had revenues of 41.1 billion euros (Refer to Exhibit I for Nokia's key financials). Despite the strong strategic growth and transformation, in mid-2007, Nokia encountered a problem with the malfunctioning of its handsets due to faulty batteries which could get overheated.

Marketing Management Case Studies | Case Study in Management, Operations, Strategies, Marketing Management, Case Studies

These batteries were of the BL-5C model and were used in most of Nokia's low-end models (Refer to Exhibit II for photographs of BL-5C batteries). The Finnish company was sourcing the BL-5C batteries from the Matsushita Battery Industrial Co Ltd.3 (Matsushita) of Japan and several other suppliers...

Exhibits

Exhibit I: Nokia's Key Financials
Exhibit II: Photographs of Bl-5C Batteries
Exhibit III: The BL-5C Batteries which were Subject to the Product Advisory

Caselet 2: Bausch & Lomb's Moistureloc Crisis - Next Page>>


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1] "Nokia Hit by Battery Overheat Fears," www.indiainfo.com, August 14, 2007.

2] Nokia Corporation, headquartered in Espoo, Finland, is a leading communications company. As of April 2007, it was the world's largest manufacturer of mobile telephones, with a global device market share of approximately 38 percent. (Source: www.nokia.com/2007/Q2/index.html)

3] Matsushita Battery Industrial Co Ltd., based in Osaka, Japan, is a leading manufacturer of batteries and started manufacturing batteries in 1923.

 

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