A product defect can happen to any company. It’s not so much the defective product that remains in the public memory, but how the organization responds to the crisis.
Product recall expenses can be considerable and may include the costs of removing the product from the market place, repairing or possibly replacing shelf stock, loss of sales and profits, as well as the very real costs of a damaged business reputation. Large companies might have the reserves to ride out a crisis, but for small-to-medium businesses, a product
recall might just push them to the brink of closure. Yet, a fast and definitive response by the company can limit damages and help stop them from spiraling out of control.