Are Your Competitors Facing a PR Crisis? Wait—Don’t Get Too Excited Just Yet!

Having competitors is a common occurrence for companies in the business world. If the business world were likened to a “battlefield,” then the relationship between a company and its competitors would be a never-ending battle.

So what if one of those competitors is currently facing a PR crisis? Could this be a sign that the company has won that heated battle?

Before answering that, Media Buffet PR previously published an article on PR crises and how they can pose a threat to companies.

Once we understand what a PR crisis is and how it can hinder a company’s operations, PR agencies should pay close attention to—and learn from—the crisis cases experienced by other companies, especially competitors. Media Buffet PR has done just that by compiling a list of PR crisis cases that occurred at several companies in 2021.

Returning to the question: “Can a PR crisis experienced by a competitor be a breath of fresh air for a company?”

Snowball Effect: A PR Crisis with the Potential to Spread

Let’s take a look back at the case where it was first revealed that the philanthropic organization Aksi Cepat Tanggap (ACT) had misappropriated funds intended for the public on July 2, 2022. This case has become an even hotter topic of discussion after the media highlighted that, all along, top executives at ACT had been receiving exorbitant salaries and enjoying lavish perks. To date, the police have named four top ACT executives as suspects.

Although this case directly has a negative impact only on ACT, if we look at the fallout from this case, the operations of other philanthropic organizations could also be threatened. How is that possible?

The theory that supports this answer is the “Snowball Effect.” This theory states that mistakes in small matters can ultimately lead to major problems. This is exactly what happened in the ACT case.

ACT is one of the largest philanthropic organizations and relies heavily on public sympathy. Consequently, this scandal risks eroding not only public sympathy but also public trust. The public may also become hesitant to donate through other philanthropic organizations. Therefore, the crisis faced by ACT is not merely a breath of fresh air for other philanthropic organizations. It’s like a neighbor’s house on fire—the flames could easily spread to our own home as well.

Media Buffet PR, as a PR agency in Jakarta, consistently provides clients with insights into current industry trends and developments among their competitors. This enables clients to mitigate issues that have the potential to trigger a crisis. Media Buffet PR also offers services on how to handle a crisis, from the pre-crisis stage through the post-crisis stage. We have previously applied this approach in managing the PR crisis faced by Zap Clinic.

Crisis mitigation is a responsibility for PR practitioners within a company to remain vigilant and constantly monitor both the industry and their competitors. By doing so, companies can mitigate issues that have the potential to threaten their operations or even tarnish the reputation they have painstakingly built over many years.