CONTINGENCY PLANNING

So where did it all go wrong?

How could Samsung, the supposed frontrunner of phone technology, create a handset that self-combusts?
Following the launch of the product and then the initial reports of phones catching fire, Samsung identified the
cause of the problem as a battery cell fault and issued the first product recall. Manufacturer Samsung SDI had
created batteries that where bigger than intended which resulted in a build-up of pressure when fitted into
the handset, so by using another manufacturer (ATL) to create the right size battery problem solved, right?
Apparently not. Reports of devices catching fire continued to surface, and Samsung received at least 92
reports of Note7 batteries overheating in the U.S., with 26 reports of burns and 55 reports of property
damage2, which left Samsung with no choice other than to call it quits. Since the battery is apparently not the
issue, do Samsung even know the cause of this billion-pound error? And more importantly, will they be able to
recover and return as the tech-savvy business that they prefer to identify as.

Bring on the brand contingency plan

The situation speaks for itself in terms of how much damage has been done, and what is undeniable is that
Samsung need to manage this unexpected outcome in a seamless manner (they cant handle another
embarrassment). A contingency plan is more or less a back-up plan, and it is exactly what Samsung need.
Devising a plan that will allow them to control the backlash is the best way forward, allowing them to prevent
any further damage to the brand.
Samsung is already making steps towards controlling the chaos, by releasing official statements to the media
they can selectively choose the information the wish to share with the public, and will dispel false information
and rumours from circulating. Furthermore, they will need to rely on the big picture to regain customer trust,
and turn to other flagship products to nudge them back into success, such as the upcoming Galaxy S8. One of
the biggest assets Samsung has to help them is the fact that they are Samsung, and by deflecting away from
the car crash that was the Note7 it will remind customers of why they trusted Samsung in the first place.
The nature of the disaster means that safety concerns will be a new fear amongst customers, so they will need
to dive straight into addressing safety measures and showing the public in all possible ways that this will never
happen again. Theres speculation that Samsung will attempt to contain the concerns by sacrificing the entire
Note series; by ending the production of present and future Note models, Samsung may be able to save other
series from suffering as a consequence.

TERESITA A. VALDEZ BSA-V