On many occasions, companies will find themselves in a crisis that threatens the existence of the firm if not properly resolved. The management has a responsibility to ensure that they bring their firm out of every crisis that may occur by choosing the best strategy possible. Problems are always going to occur. As such, managers should undertake a proactive approach and think of any potential risks that the firm can face in the future. This will help in coming up with the possible strategies that could help in turning around the state of affairs in the company.
In January 2010, Toyota Inc. had announced the decision to recall its automobiles for the acceleration problem that was leading to fatal accidents. The incident followed a public uproar that was threatening the market leader in the market. Even though the company has witnessed other problems in the past, it handled the situations without losing its global appeal. However, the latest problem had occurred in an era where the use of social media had spread. It was used by bloggers, media companies, and competitor firms to spread the news with the view of making the company lose on its market share. Toyota Inc. has been built on the principle of safety to its customers. Over the years, it has been able to gain loyal customers who have made its sales stable and made it the market leader in the automobile industry. It was, therefore, important that the company re-assured them that everything was in control.
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The firm’s management understood that the situation represented a crisis that needed to be addressed to ensure that it does not damage its reputation in the market. The company set up a communication center and opened social media accounts; specifically, Facebook accounts, that are used to address the issues raised by its worldwide clients. Through a series of posts on the company’s social media timeline, the management acknowledged the existence of the problem on its automobiles, which was caused by a manufacturing fault. As such, it was necessary to recall its vehicles across the U.S. market to ensure that the problem was rectified and avoid accidents from occurring in the future. Due to the power of social media, the company was able to turn-around its fortunes and ensure that it did not lose its customer base. Toyota Inc. is one of the companies that have a huge customer base of loyal customers across the world. The company has built on its customer base by offering quality and safety on its automobiles. Therefore, it was necessary to assure the customers that the company still upholds its principles of safety, and thus the issues had been solved.
The use of social media to manage the crisis played a critical role in ensuring that the crisis was managed. Acknowledging a problem is fundamental for a company to manage a crisis successfully. Likewise, it must inform the public of the measures that it has put in place in order to ensure that the same is resolved. Toyota Inc. used the power of social media to turn around its fortunes and ensure that the crisis did not affect its power in the market. It used the social media platform to restate to the public that it was committed to producing quality automobiles that focused on the safety of its clients.
Ultimately, the management of Toyota Inc. had mastered the art of crisis management. The recall of its automobiles and how the happening was fuelled through the use of social media posed a huge potential risk on the company’s reputation in the market. However, by setting up a Facebook account that was used to respond to the customers’ concerns, their confidence was restored, and the company did not lose its market share as a result. Thus, the way that the company handled the matter was a key determining factor in helping turn-around things in the company.
Appendix
The information on how the company used social media to manage its crisis is contained in a report issued in 2011. Further, through accessing the company’s posts on its Facebook page between 2010 and 2011.
