In 2009, after months of scathing media reports of cars that could accelerate out of control, Toyota had an extremely expensive problem on its hands. Recalls, fines, and plunging sales resulted in losses to the auto manufacturer in the neighborhood of $2 billion. But bad news isn't always bad for business. After the movie Borat made relentless fun of the nation of Kazakhstan, Hotels.com reported a 300% increase in requests for information about the country, and a wine described as "redolent of stinky socks" by a prominent website saw its sales increase by 5%.
This piece originally appeared in Stanford Business Insights from Stanford Graduate School of Business. To receive business ideas and insights from Stanford GSB click here: (To sign up : https://www.gsb.stanford.edu/insights/about/emails ) ]