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 B2B relationship that dated back 100 years. In 2000, Bridgestone/Firestone recalled almost 6.5 million tires, predominantly original equipment on Ford Explorers. The ensuing backlash had negative implications for both companies.
Business-to-business (B2B) 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 business-to-consumer (B2C) transactions, B2B firms focus on serving customer needs, building customer relationships, and creating customer value. In the B2B context, demand is often derived through the supply chain by consumers changing needs and behaviors. B2B relationships are strongly affected on the consumer's belief about the organizations.
Read the case below and answer the questions that follow.
In the late 19th century, Henry Ford and Harvey Firestone developed a friendship that would benefit both of their companies for the next 100 years. Firestone and Ford had a long-standing 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 2000, Bridgestone/Firestone recalled 6.5 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 accident-related 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 2001, the CEO of Bridgestone/Firestone 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.
B2B 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 21st century rebuilding their brand and rebuilding consumer confidence.

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