Companies are used to having the press portraying them in an effective way as well as in a bad way.  That is why your average successful corporation has a well-paid P.R. staff that can usually turn a situation in their favor or can downplay the severity of the bad press aimed at them.  Yet, when the timing of what the issue is happens in an inopportune time or there is more than one problem happening at the same time, then it remains to be seen if the company can whether the ongoing storm.  Some may say that this is happening to one major company and that would be the online giant known as Amazon.

Amazon is no stranger for being in the press regarding acquisitions of companies and reports of customer dissatisfaction.  However, it has weathered any bad press over the years and appeared to be continuing its’ success in the future.  Yet, Amazon is now in a position that recent events suggest the company is under scrutiny regarding a major product recall, trying to close a $13.7 billion-dollar deal that could be blocked and being attacked verbally by the President of the United States.  So, let us discuss if Amazon will survive or cease to exist because of the negative press that is being generated recently.

 

Recalls of a Product are Never Good for Business

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One could easily say that customers who send back the same product that was ordered because of lack of satisfaction can be damaging enough.  When a company issues a massive recall of a product and must refund money back to those customers, that can cause certain companies to collapse and never be seen again.  Though by itself, the fact that last week Amazon had a major recall of solar eclipse glasses and refunded money back to those customers is not enough to cause the company to cease to exist. 

However, it is a punch to the gut considering the loss of revenue and that some customers may now think twice before ordering from them again; the recall was based on Amazon was unsure about certain vendors claims that their glasses were safe and certified.  The problem about this recall is that this was just the beginning of the unfavorable press that they would receive this week, such as the issue surrounding a specific deal the company is trying to close but speculation from some is that the deal will stall or not to happen at all.

Deal or No Deal

Whenever a company is trying to secure a deal, anything can suddenly come up that can help seal it or break it.  Right now, Amazon is trying to secure a deal worth $13.7 billion-dollars that would enable it to acquire the Whole Foods grocery chain.  Naturally, those who have followed the online giant’s business acquisitions knows that this would be their largest procurement in their history, so any type of bad press could cause the negotiations to derail. 

Unfortunately, there are some market observers who feel that the deal is expected to be blocked by the government and that is the type of speculation the company does not need during this time as well as the press reporting about this.  Considering that things are starting to get dicey for Amazon and their image, the third issue the company is facing now involves comments made against them by the President of the United States.

Words Can do More Damage Than Stones

Remember the children saying of sticks and stones may break my bones but names will never hurt me?  Well, this may be true in most situations but words said by a powerful individual can be more devastating to a person or company; especially when it comes from the President of the United States.  The president is no stranger to tweeting comments regarding those he dislikes and Amazon, as well as its’ CEO Jeff Bezos, fits in this category. 

Trump released at tweet on Wednesday that attacked Amazon by stating that Amazon is doing great damage to tax paying retailers. Towns, cities and states throughout the U.S. are being hurt – many jobs being lost!  Bezos has been a critic vocally of the president and owns The Washington Post in which has submitted many articles that have been critical about Trump. 

Trump has responded back previously accusing them of manipulating their tax payments in a way where the company hasn’t paid their fair sure which enables them to have an advantage the other retailers lack.  The most recent tweet comes at a time where the speculation of Amazon’s deal being blocked by the government is now sounding more realistic than guesswork. 

Making matters worse, the president’s comments add to concerns that have been echoed within the retail industry in that the direct cause for woes this year that other retailers’ have been experiencing is due to Amazon; more store closings as well as a lot of retailers’ needing to file for bankruptcy protection have occurred this year. 

Though Amazon has been trying to prove those claims false by demonstrating their working with smaller retailers that has been acknowledged by Trump’s own Small Business Administration, it will remain to be seen if this will be enough to change the narrative.

Will Amazon Survive Hurricane Trump?

The odds would be that Amazon will continue to survive as it has done since its’ creation.  Although it is also probable that it will continue to thrive, there are still factors that can easily alter this probability.  Considering Trump is one who dislikes immensely to lose, he can do considerable damage to Amazon’s reputation and bottom dollar if he acts like a hurricane by constantly pounding on the company until there is nothing left of it. 

Since both Trump and Bezos have other concerns to deal with besides each other, this confrontation should not peak for a while unless something out of the ordinary occurs; when it comes to Donald Trump, anything can happen on any given day.  The wild card will be how the press handles this by either continuing to shine a light only on the president or waiting for something newsworthy to report on that deals with Amazon or its’ CEO.  Can Amazon Survive any more bad press and hurricane Trump?  

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Seth Horowitz
Seth is an avid tech writer who currently lives in Las Vegas, NV. While he always had a passion for writing, his original goal was to combine business and writing and go into Advertising, but that didn't happen quite how he planned. He decided to go into education and became an English teacher in Brooklyn, NY. After teaching for many years, he made the move to the Las Vegas area in 2008 where he began his new career as a freelance writer, and has been doing so for over six years.