Nokia in Crisis Management Mode over Faulty 'Bl-5c' Batteries

Details

Case Code : CLMM065
Publication date : 2009
Subject : Marketing Management
Industry : -
Length : 03 Pages
Price : Rs. 100

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Key words:

Nokia, crisis management, BL-5C batteries, mobile technology, mobile phone, Matsushita, product advisory, consumer confusion, communication

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Abstract:

A product defect related to BL-5C batteries used in many Nokia mobile phones has put Nokia in a crisis management mode. The company is trying to preempt any consumer confusion arising out of its product advisory with respect to the batteries. It has offered to replace all the affected batteries that it contends is limited to the 46 million BL-5C batteries manufactured by Matsushita between December 2005 and November 2006.

Introduction Nokia Corporation (Nokia) has made connectivity truly ubiquitous. It has emerged as a world leader in mobile technology and progressively moving towards the company's vision of creating a world where everyone is connected. Albeit the strong strategic growth and transformation, in mid-2007 Nokia encountered a problem with the malfunctioning of its handsets due to faulty batteries which might get overheated, especially the BL-5C batteries which were used in most of Nokia's low-end models. The Finnish company was sourcing these batteries from the Matsushita Battery Industrial Co Ltd. (Matsushita) of Japan and several other suppliers.

On August 13, 2007, Nokia issued a warning over its BL-5C batteries across the world, stating that these batteries may get overheated while charging. It said that about hundred such incidents of overheating had been reported globally but there were no reports of the batteries being associated with any serious injuries or damage to property...

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