Chobani: Managing Explosive Growth, Aggressive Competition and Threats to Product Quality
A product recall in the fall of 2013 sends Chobani, Inc. scrambling to fix the manufacturing problem, and address a flood of customer concerns. While the company successfully identifies the problem, recalls the product, and fields customers’ concerns within weeks, the adverse incident calls Chobani’s foundational strategy into question. The company must decide if product quality and word-of-mouth marketing are enough to spur continued growth, combat increased competition and manage future threats associated with product quality.
- To highlight the challenges of managing a quickly growing company;
- To encourage the analysis of potential and actual responses to product quality issues;
- To demonstrate the importance of managing the scale of conversation in a timely and consistent fashion in the social media era;
- To provide an example of how consulting with regulators matter in managing a crisis and why a crisis management plan should be established for all corporations.