Question: Ford and Firestone had a B 2 B relationship that dated back 1 0 0 years. In 2 0 0 0 , Bridgestone / Firestone
Ford and Firestone had a BB relationship that dated back years. In BridgestoneFirestone recalled almost million tires, predominantly original equipment on Ford Explorers. The ensuing backlash had negative implications for both companies.
Businesstobusiness BB marketing refers to the process of buying and selling goods or services to be used in the production of other goods or services. Just like businesstoconsumer BC transactions, BB firms focus on serving customer needs, building customer relationships, and creating customer value. In the BB context, demand is often derived through the supply chain by consumers changing needs and behaviors. BB relationships are strongly affected on the consumer's belief about the organizations.
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In the late th century, Henry Ford and Harvey Firestone developed a friendship that would benefit both of their companies for the next years. Firestone and Ford had a longstanding history of collaborating to develop products that were mutually beneficial for both companies. Many of Fords automobiles were sold to consumers with only Firestone tires.
In BridgestoneFirestone recalled million tires as a result of a defect with the nylon overlay. Firestone claimed that Ford specified this particular overlay, whereas Ford claimed that the overlay defect was because of production issues with Firestone. The majority of these tires were sold as original equipment on the Ford Explorer, Fords top selling SUV. Firestone firmly believed that it was acting in the best interests of the consumer by recalling the tires. However, after numerous accidentrelated fatalities, Firestones reputation for quality was under serious scrutiny. Firestone then began to criticize Ford saying that the accidents might not have been caused by the tires. Firestone claimed that there was something wrong with the Explorer that caused it to roll over and crash that was separate from the tires. Ford responded by offering to replace all tires at its own expense.
Immediately, the media began scrutinizing production at both Firestone and Ford. This caused many consumers to rethink the purchase of Ford vehicles as a result of the potential risks involved. Sales immediately began to decline.
In the beginning of the CEO of BridgestoneFirestone sent a memo to the CEO of Ford indicating that it would not enter into new contracts with Ford for the next calendar year. Ford responded that it would begin looking for new production partners to supply tires for its vehicles.
BB relationships are often built on mutual trust, goal congruity, and collaborative communication. Firestone claimed that it did not want to continue business with Ford because of a loss of mutual trust and respect. Both companies have spent the beginning of the st century rebuilding their brand and rebuilding consumer confidence.
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