Cause and Effect of Price Wars

When large sums of money are at stake, many companies bend and flex to their limits to guarantee defeat over the competition. Sometimes they take a loss in one area for a gain in another area. There is a cause for every action the company makes, and in return for their action there is an effect. Although the effect can sometimes be pre-determined, no one is really sure what the outcome is going to be until the time comes.
There are millions of cars on the road today and they all require tires. When an owner replaces the tires on his or her vehicle, they can decide what make and model will be on the car. But when a buyer purchases a new car, they do not have the option of which tires they would …show more content…

The effect of the recall, injuries and deaths has brought this case in front of the Senate. Trying to protect themselves each company has begun to point fingers at one another. Ford President and CEO Jacques Nasser stated "Firestone failed to share critical claims data with Ford that might have prompted the recall of these bad tires sooner." As soon as the companies are pointing the finger at who is to blame they are also authorizing a recall for the tires that are effected. They promise you that if you go to a Ford dealer or and authorized Firestone dealer the tires will be replaced. But the problem is that 6.5 million effected tires is a lot to replace so there is a replacement tire shortage. Some places will put you on a waiting list for upwards of a year, while others will not have an answer for you. But saying who really is to blame is a tough decision. A recent Reuters Zogby poll found that 3 in 5 blame Firestone, while only 1 in 15 blame Ford (Naughton).
Every time a person or a large company has a cause to do something there will always be an effect of that cause in return. The effect might benefit the decision maker or completely harm them. In this case the effect had a dramatic and dangerous outcome. Not saying that cheaper isn't always better, but there has to be a quality and testing standard to help prevent situations like this. With 6.5 million tires being recalled,