Case Studies
The Toy Disaster
When an industry crisis is massive enough, all companies can get tarred with the same brush – as one toy manufacturer discovered during the front-page recalls of 2007. Although its products were free of excessive lead paint, consumer advocates, reporters, and legislators implicated the company in their warnings and broadsides.
Yet the company saw beyond the current marketplace confusion. By aggressively correcting the record, it would differentiate itself as the one name to still trust for toys safe enough for children. A pandemic disaster thus became a unique competitive advantage as fourth-quarter sales reached record peaks.