Just as you start scaling your business, a flaw is discovered in your
product that makes 10,000 units that have already been sold dangerous to
use.
Total Impact on Assets: $0
Sales decline as word spreads of your refusal to stand by your
customers and product, leaving you with thousands of unsold units.
(Lose $2M)
Sales jump as word spreads of your commitment to your customers and
product. (Gain $2M)
A class-action lawsuit is filed against you, cutting sales further and
sealing your company's fate.
(Bankruptcy)
Customers slowly regain confidence in your product and company, and
sales gradually climb over the next two years
(gain $50M)
Competitors surpass your product's quality by focusing on research and
development, causing you to lose most of your market share and forcing
a layoff of 50% of your workforce
(lose $200M)
Your product keeps its spot as the industry leader, and the increase
in quality control increases customer satisfaction and adoption even
further (gain $300M)