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.
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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.
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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
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