United Breaks Guitars Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

United Breaks Guitars Case Study Solution

Discuss whether social media (e.g., Twitter, YouTube, Facebook, and Tumblr) are better at destroying company value (i.e. United Airlines) than creating it.

Social Media has become a fast mode of communication and creating brand awareness in the market. It has become the mode of connecting the business with the customers, generating strong word of mouth, and recommendation to other customers.Over. the period of time, with the emergence of technology and especially the digital media, social media has emerged as the main medium to create strong brand awareness and market penetration. Many businesses have sky rocket success due to strong virility of the social platform(Cespedes, 2015).

In fact many traditional businesses have developed the social interactive pages, portals and blogs to directly connect with the customer in an attempt to get the firsthand feedback that will help in turning the product or service better.(Holt, 2016)

Though using social media has allowed businesses like Mc Donalds, Starbucks, Netflix and others a huge success, an in effective management of the social media platform along with the customer service can break the company’s reputation in the market. In such circumstances, it has been observed that social media plays a crucial role in deteriorating the brand image in the market (Edmondson, 2011)4.

Many businesses like the United Airlines has faced the music due to improper handling of the customer at first and then the inadequate and poor strategy to address the customer and market segment through poor social media strategy.This not only made United Airlines to repay the customer but created a strongly negative image of the airline in the market affecting the overall sales and market value.

By analyzing the case of United Airline, it can be assessed that customer service and right handling of the customer complaint is the key to positive feedback.It had been great if the customer service had acknowledged Dave’s complaints and instead of giving the “clichés” sentence would have tracked the complaint history. By doing so, the story had been other way round.

In addition to this, the company’s strategy to address the disgruntled customers also flared up the event, hitting the brand image of the company substantially .Since the United Airline used the technique of replying each customer personally on direct message, this created a bad image as company was being non-responsive to the customer concerns.(Piskorski, 2014)

The situation could have been better controlled, if instead of replying the customer through direct message, it would have publically addressed each customer’s issues and offered a satisfactory answer.It is due to the fact,that with the emergence of social media, the customer wants the two-way relationship with the company and instead of dealing company as a subject, the customers have developed the behavior of connecting with the company as a person, urging for more interaction and presence on social stance in a two-way tone and not in a mono-tonic order.

United Breaks Guitars Harvard Case Solution & Analysis

Lastly, social media has become a public platform where now not only people interact with each other, but companies also interact with the customer to develop a certain position in the mind of the customer and to continually connect the customer with the brand, this makes the company the top choice of the customer and increases the customer loyalty.However, if the company fails to manage the disgruntled customers, the effect of negativity multiplies on social media since the power of sharing and virility increase with a bad experience it may plunge down to the depth of negative brand image, bad reputation that may ultimately affect the profits of the company and choices of the new and existing customers, ultimately deteriorating the company value in the market.(Pearson, 2013)......................

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