Crisis management: Western Digital's 46‐day recovery from the 2011 flood disaster in Thailand

Abstract

Purpose

This crisis management case aims to detail how Western Digital lost and regained its position as the world's number one hard disk drive fabricator after disastrous flooding at its Thailand facilities in 2011.

Design/methodology/approach

In‐depth interviews with Western Digital's key recovery personnel identified four factors that greatly contributed to the company's rapid comeback: people and leadership; strong cash position; stakeholder support; and supply mitigation.

Findings

The speed with which Western Digital's production resumed was noteworthy, especially considering the extreme cleanliness HDD manufacturing demands – a tiny speck of dust can cause disastrous consequences to the operations of magnetic data storage devices. This case documents the key resources and decisions that facilitated Western Digital's rapid recovery from the largest natural disaster the company had ever experienced.

Practical implications

The experience has taught company leaders that completely shutting down facilities once the situation reaches certain risk thresholds may be effective in limiting damages in the future.

Originality/value

Prior to the flood Western Digital's executives and senior management have taken time to pursue advanced management training. The company's impressive response to last year's natural disaster validates the wisdom of Western Digital's strategy to invest in employees.

Citation

Chee Wai, L. and Wongsurawat, W. (2013), "Crisis management: Western Digital's 46‐day recovery from the 2011 flood disaster in Thailand", Strategy & Leadership, Vol. 41 No. 1, pp. 34-38. https://doi.org/10.1108/10878571311290061