Technological Institute of the

Philippines
983 Aurora Boulevard, Cubao, Quezon City

THE SAMSUNG GALAXY NOTE 7 EXPLOSIONS

A Case Study Submitted in Partial

Fulfillment of the Requirements for the Course
EE 001

By:

Picardal Jr., Ronnie Paligutan

September 9, 2019
 According to Steve Kovach, bad battery design and a rush to release an updated

version of the Galaxy Note 7 caused some of the devices to overheat and explode. The

Samsung Company released a report Sunday night in which it said that two separate

battery failures caused some Note 7 phones to overheat and even catch fire. The initial

problem affected the first batch of Note 7 phones that launched last fall. In those phones,

the battery was very large for its casing, causing some devices to overheat, according

to Samsung's report. Second is, Samsung manufactured the phone with a battery from

a different supplier. Samsung identifies what caused the problem with the Note 7, it has

the exclusive challenge of showing that its devices can be trusted moving forward.

In the case of the batteries found from Samsung Display and Digital and

Interface and Internet Component, there wasn't enough room between the heat-sealed

protecting pouch around the battery and its internals. In the worst scenarios, that began

electrodes inside each battery to crimp, weaken the separator between the electrodes,

and cause short circuiting. In the case of batteries found from Amperex Technology

Limited, several cells were missing insulation tape, and a few batteries had sharp

protrusions inside the cell that led to damage to the separator between the anode and

cathode. The batteries also had thin separators in general, which improved the

consequences of separator damage and short circuiting. (Moytihan T., 2017)

South Korean company is one of the world’s largest manufacturers of electronic

devices. The Production of a widespread consumer and industry electronics,

including appliances, digital media devices, semiconductors, memory chips,

and integrated systems, specifies by the Samsung Company. It has become one of the

most-familiar names in technology and produces about a fifth of South Korea’s total

exports. Samsung was started as a grocery trading store on March 1, 1938, by Lee
Byung-Chull. Lee started his business in Taegu, Korea, exchange noodles and other

goods produced in and around the city and distributing them to China and its provinces.

After the Korean War, Lee expanded his business into fabrics and opened the largest

woolen mill in Korea. Lee focused seriously on industrialization with the goal of

helping his country improve itself after the war. During that period his business

benefited from the new patriotic policies adopted by the Korean government, whose

aim was to help large domestic conglomerates (chaebol) by shielding them from

competition and providing them easy financing. (Kovach S., 2017)

According Boon Hun these are the following facts about Samsung Note 7. The

issue stemmed from the battery. Of all the millions of Samsung Galaxy Note 7 shipped

out by Samsung, there were 35 cases of the smartphone catching fire reported to the

company. A thorough investigation was conducted, and it was found that it was a

battery issue. Samsung to examine down the supply chain to investigate possible battery

defects. Having pointed down the cause, Samsung is now ready to hunt down and

identify possible substandard batteries in their product. According to Samsung, the

current Note 7 device will replace in Singapore with new models in a Facebook post at

the official Samsung Mobile Singapore Facebook Page. The replacement of Samsung

Galaxy Note 7 models will be released by the company, Samsung stated that

information. The Samsung supplier company took a hit. The 30 percent was supplied

by Chinese company Amperex Technology Ltd, and 70 percent of Note 7’s battery was

the SDI Corporation. Therefore, Samsung Electronics Corporation has stopped

ordering from Samsung SDI Corporation. Samsung's review of Note 7 is an appalling

sum. Evaluations of the expense of Samsung's review put the sum at around $1 billion

or less. However, it was noticed that the sum is under 5% of their anticipated overall

gain this year. the Samsung organization anticipated total compensation remains at an
amazing 23 trillion won $28 billion during the current year. Samsung Galaxy Note 7 to

competing against Apple iPhone 7. Samsung was knocking on the first-mover

advantage against Apple iPhone 7 which will come Singapore soon. The phone has

increased favorable reviews to its competitor, but the advantage has all and evaporated

ever since their Note 7 sales stop. Samsung Vice Chairman Lee Jae Yong apparently

the man behind the recall. According to Sanghyun Park, an equity analyst at Pelham

Smithers Associates, Lee’s convinced that the decision for the recall comes directly

from him. As a member of Samsung’s founding family, it made sense that he would

want to protect the company’s reputation founded by grandfather of the owner of

Samsung Company. The recall might just improve the long-term damage to Samsung.

As with all technology, defective models, especially those risky to users, will cause

long-term damage to the company’s image. On the other hand, Samsung’s quick

response to the crisis and their quick handling of the situation might just lead to a more

favorable outcome for them.

Nowadays, as new economic pressures on innovation are forming, the research

and development costs of new products are increasing, and product life cycles are being

shortened. To respond to these trends, there is a need for companies to come up with

innovative ideas to introduce their business models in this process, internal product

development makes use of outside resources while inside intellectual property is

managed outside (Chesbrough, H.W. 2003)

Essentially, new products are built by linking capabilities related to

technologies and customers. In the case of service improvement in product-centric

firms, managers can use business models as tools to visualize changes, which should

increase internal transparency, understanding, awareness of service opportunities, and

necessary alterations to their models. Managers of different product and process

advancement projects thus face a paradox: how to take benefit of core capabilities

without being hampered by their dysfunctional flip-side. So, exploration and

exploitation alliances are needed in the biotechnology pharmacy industry (Chesbrough,

H.W. 2007)

Despite the fact an open approach to innovation presents the opportunity for

companies to come up with product features that would have been difficult to plan out

under concrete closed integration, when partner firms set dissimilar goals, open

innovation also restricts the group’s ability to finalize the product’s technological

trajectory. In this way, both revelation and dissimilarity are treated as advantages and

expenses of open advancement (Almirall, E.; Casadesus-Masanell, R. 2010)

There are a few focal points to using open development in hazard loaded

exercises, for example, the inventive of new innovations or business openings,

conceded money related costs, early exits that translate to reduce downward losses, and

delayed exits in the case of spin-off ventures. However, according to them, innovative

firms must develop new capabilities and methods to discover the full real option

potential of open innovation practices (Vanhaverbeke, W. ; Van de Vrande, V.;

Chesbrough, H. 2008)

It should be noticed that different classes of organizations, for example, little

providers of parts, modules, and end-client items in high-end markets, as well as

producers and constructing agents of segments and frameworks, likewise assume

significant jobs in the innovative enhancement of such electronics (Christensen, J.F.

Olesen, M.H.; Kjær, J.S. 2005)

 Anything changes should an organization expect in its authoritative structure

and the executives framework when it shifts from shut to open advancement. As per an

examination wherein four Italian firms working in develop, resource serious enterprises

received open advancement, working in develop, resource escalated ventures was

portrayed, the adventure from close to open development includes four principle

measurements of an organization's association; i.e., between authoritative systems,

hierarchical structures, assessment procedures, and learning the executives frameworks

(Chiaroni, D.; Chiesa, V.; Frattini, F. 2010)

In the formative changes in the semiconductor (DRAM innovation) field,

Samsung Electronics pursued a winding procedure model of mechanical development

in which there are four stages. Passage of outside organizations into the Korean market

and their refusal to move their advancements to Samsung, starting its indigenous

mechanical development capacities (ITICs). Samsung began mechanical development

abilities (TICs) by methods for the figuring out of imported outside advances and by

exchange of innovation, Samsung improved innovative development (TI) by methods

for a versatile innovative development system and, at last Samsung built up the capacity

of setting up its own ITICs, getting to be one of the main organizations on the planet

and contending close by firms from cutting edge nations in the worldwide market (Ali,

M.; Muhammad, A.; Park, K. 2011)

Development is a consequence of different mixes, for example, the dynamic

blend among abuse and investigation, the open mix among ingestion and conveyance,

the vertical mix among upstream and downstream, the useful mix somewhere in the

range of concentrated and broad, and the various mix among synergic and sporadic. As

per this, in the advancement exercises for Samsung's code-division numerous entrance
(CDMA) computerized telephone improvement, a solid vertical blend gave the

organization an upper hand over its opponents (Hong, Y.S. 2012)

However, in the case of smartphone apps, in contrast to Apple, who employed

a closed strategy for quality control of the platform and to ensure customer loyalty,

Samsung employed the platform strategy of openness, which allowed the free entry of

participants and the sharing of created value. This is considered a vital and an excellent

platform environment (Kim, E.Y.; Valdez, E.C. 2014)

As indicated by McAfee and Brynjolfsson, the world is at a defining moment at

which the impacts of computerized advances must be appeared through robotization

and the production of extraordinary things. There is nothing surprising about advanced

advances with PC equipment, programming, and systems at their center. However, after

the third unrest, they are changing the economy as they become progressively mind

boggling and coordinated (McAfee, A.; Brynjolfsson, E.2014)

The fourth modern insurgency depends on physical innovation achievements,

for example, self-governing vehicles, 3-D printing, propelled apply autonomy, and new

materials notwithstanding advanced leaps forward, for example, the Internet of Things

(IOT), radio frequency identification (RFID), Bitcoin, and a few computerized based

natural developments, which are diffusing a lot quicker and more broadly than past

supposed unrests. With the entry of the fourth mechanical insurgency, there have been

a few consequences for business: client desires are moving; items are being upgraded

by information, in this way improving resource profitability; new associations are being

shaped as organizations get familiar with the significance of new types of coordinated

effort; and working models are being changed into new computerized models (Schwab,

K. 2017)
 After searching for how many hours, there will be no alternative solution to the

issue about Samsung Note 7. The Samsung Company look a solution quickly to solve

their problem. The first report of the note 7 exploding in August 24, 2016, they

investigate and saw what cause of the explosion of note 7. After getting the result of

the investigation of the Samsung Company, they voluntary recall because of faulty

batteries.

Since the Samsung Company states the problem about their product. Samsung

Company should stick to one trusted supplier of battery to have a safety and avoid that

kind of situation, to put the battery exact to its casing. The company also created a new

group of third-party battery advisers that involves professors from the University of

Cambridge, the University of California at Berkeley, and Stanford University. To

protect the name of there company and to be come of one trusted company again in the

world.

Table 1. 8-Point Battery Safety Check

 Now that Samsung Company sees what caused the problem with the Note 7, it

has the unique experiment of proving that its devices can be trusted moving forward.

The company tells that it now has the processes in place to make sure its phones don't

overheat and catch fire again. Here's an infographic Samsung made that helps to clarify

what went wrong with the Note 7.

Table 2. Galaxy Note7 ‘What we discovered’

 After the incident in Samsung Company about their product, the company

should make a quick solution about the problem in battery case. Since the first problem

of having a large battery to its casing cause fire and explosion of the Note7, Samsung

Company make the case larger to fit the battery in to the case, because according to the

Samsung Company having a large battery than its casing is the primary cause of

overheat of the device. Second is about having a different manufacturer can also a

problem, Samsung Company rush the release of the Samsung Note7 cause of the

devices to overheat. The company did not double check the quality of each battery of

their two manufacturers, it can create of having a different sizes of battery that can

produce of a large battery to its casing cause to the devices to overheat and explode.

The Samsung Company should stick to one battery supplier and trusted company. It

can avoid the problem like what they are experiencing before. The Samsung Company

would identify easier when they experience again about fires and explosion like the

Note 7, since they can stick to one battery supplier. Samsung must beware to this kind

of situation for the reputation of the Samsung Company. It’s hard to build up a

reputation but easily to lost.

Kovach S. (2017, January 22) Samsung announces what caused the Galaxy Note 7 to

overheat and explode https://amp.businessinsider.com/samsung-issues-galaxy-

note-7-battery-report-2017-1?fbclid=IwAR2cxmiPzqnG9NoLzvsWWEeOM-

seTP4tdP5WmnsBwyRBh7FP8aiobByNKBo

Bondarenko P. (2015, September 9) Samsung

SOUTH KOREAN COMPANY https://www.britannica.com/topic/Samsung-

Electronics

Hun B. (2016, September 5) 8 FACTS ABOUT SAMSUNG GALAXY NOTE 7 RECALL

YOU MIGHT NOT KNOW https://goodyfeed.com/8-facts-samsung-galaxy-

note-7-recall-might-not-know/

Moynihan T. (2017, January 22) SAMSUNG FINALLY REVEALS WHY THE NOTE 7

KEPT EXPLODING https://www.wired.com/2017/01/why-the-samsung-

galaxy-note-7-kept-exploding/

Yun J. J. (2018, June 21) Benefits and Costs of Closed Innovation Strategy: Analysis of

Samsung’s Galaxy Note 7 Explosion and Withdrawal Scandal

https://doi.org/10.3390/joitmc4030020

Sea-Jin C. (2016, November 07) Striking The Wrong Note: 7 Lessons From Samsung's

Phone Crisis https://globalnetwork.io/perspectives/2016/11/striking-wrong-

note-7-lessons-samsungs-phone-crisis