The Asia Business Forum, March 24-25, 2008, JW Marriott, Kuala Lumpur, Malaysia Crisis communications in the YouTube Age Presented by Julian Matthews, Director, Trinetizen Media Why you need to leverage on social media in your investor relations strategy
Dell and the U.S. Consumer Product Safety Commission plan to recall 4.1 million notebook batteries on Tuesday, a company representative confirmed.
The recall affects certain Inspiron, Latitude and Precision mobile workstations shipped between April 2004 and July 18, 2006. Sony manufactured the batteries that are being recalled, the representative said.
This looks like the largest battery recall in the history of the electronics industry, said Roger Kay, an analyst with Endpoint Technologies Associates. "The scale of it is phenomenal."
Good news, get it out fast Bad news, get it out faster
Sept 15, 06: Virgin Atlantic, Qantas and Korean Air ban use of Dell and Apple laptops on board its planes, unless the battery removed.
Sept 28, 06:Lenovo/IBM: 526,000 batteries
Sept 29, 06:Dell increases recall to 4.2m
Sept 29, 06:Toshiba recalls 830,000 batteries
ThinkPad explodes in LAX airport “ So we're waiting for a flight in the United lounge at LAX, this guy comes running the wrong way, pushing other passengers out of the way and quickly drops his laptop on the floor. The thing immediately flares up like a giant firework for about 15 seconds, then catches fire…,” posting on Gizmodo.com, Sept 16, 2006
Was slow to take blame , disclose information and coordinate global recall
Let clients make multiple announcements first, escalating crisis
Only worked with US Consumer Product Safety Commission (and Japan’s Economy, Trade and Industry Ministry) to coordinate recall and replacements with clients, after clients did so themselves
Sony execs’ bow not deep enough? “ We want to put this behind us. I take this problem seriously and I want to finish the replacement program as quickly as possible for the sake of our users and corporate customers,” Corporate Executive Officer Yutaka Nakagawa, Oct 24, 2006 Oct 26, 2006: Battery snafu leads to massive loss Sony posted a 94 percent loss for its July to September quarter. Net profit dove to ¥1.7 billion (US$14 million) from ¥28.5 billion (US$240 million) a year ago.
Ingersoll-Rand Endures Kryptonite's US$10 Million Hit
OCTOBER 25, 2004, MONTVALE, NJ -- Kryptonite delivered a $10 million hit in unanticipated costs in the third quarter to the Security and Safety division of parent company Ingersoll-Rand.
Kryptonite's financial drubbing began in early September after Internet video clips demonstrated the apparent ease in cracking its tubular locks with the shells of ballpoint pens.
Kryptonite launched replacement programs for consumers and retailers, and accelerated retail delivery of new product. Those moves, however, hit the security division's operating margin. "Operating margins of 16.5 percent (in the third quarter) declined compared to 2003, reflecting approximately $10 million of estimated costs related to Kryptonite cylindrical bicycle locks," the NYSE-listed company reported Oct. 21 in a filing with the Security and Exchange Commission.
Companies blogging internally or externally HP IBM Intel Lockheed McGraw-Hill Merrill Lynch Microsoft Mitsubishi Motorola New York Times Nike Oracle Pepsi Radio Shack Raytheon Shell Starbucks Sun Microsystems Texas Instruments Time Warner Toys R Us Wells Fargo Yahoo! Apple Computer Avon Boeing Cisco CitiGroup Dell Disney FedEx GM Google Halliburton Hitachi Data Systems
Opens line of communication, engages customers, builds brand loyalty, encourages conversations
Provides insider views of company direction, promotes upcoming products/services
More personal, opinionated, flexible than press releases
Creates a knowledge database for staff, investors, suppliers, partners
“ In the world of the Internet, you don't own your brand. Your customers and your users own your brand,” David Sifry, founder Technorati, leading search engine for the blogosphere
Links: http://www.facebook.com/group.php?gid=4629441044 http://www.shoesshoesshoes.com.my Using Facebook to reach global customers, Personal Money Mag, March 2008
Ung Yiu Lin, shoe entrepreneur “ Before Facebook I relied solely on emailing our catalogues…with files being too large and slow to download. We are start-up and we do not have a big budget for marketing. Facebook allows us to reach out to overseas customers for free.” Jonathan Teoh, trulylovingcompany.com “ Facebook allows people the freedom to voice their suggestions and grouses, and we can respond to feedback in a transparent way. While this may sound scary we gain immediate insights on the sentiments of our products.” Chris Tan, lawyer, Chur Associates “ Legal services are commoditised and as a small firm we need to stand out among the big boys. So we must be different. We use it to communicate our brand values in a personal way. ”