CASE STUDY 2: SAMSUNG GALAXY NOTE 7 DEBACLES:

Q1: What are the characteristics of the smartphone industry?

Ans: Following are the characteristics of the smartphone industry.

1. Screen Display
2. Camera and Video
3. Hardware Sensors
4. Wireless Data Access

1: Screen Display
Cell phones are recognized from conventional element telephones by the
manner in which they incorporate new and developing advances into cell phones. The
innovation found in cell phones is continually developing and reclassifying the cell phone
advertise.
2: Camera and Video
Most cell phones give a lot bigger screen than conventional component
telephones. Adjustable demonstrations have likewise entered the cell phone promote, making
it conceivable to show data on explicit regions of the screen by bowing the gadget while the
showcase is off.
3: Hardware Sensors
Cameras on cell phones regularly brag higher goals just as the capacity
to catch portable video. Notwithstanding higher pixel resolutions, top of the line cell phone
cameras highlight sped up just as more brilliant and quicker focal points and propelled clamor
decrease.
4: Wireless Data Access
Portable information systems are given by remote bearers to
cell phones. Remote Internet get to is accessible over-the-air to cell phone clients with portable
information plans by means of 2G, 3G and 4G innovations.
Q2: What are Samsung’s key strengths? What is the nature of the product
quality problem faced by Samsung? Which of Samsung’s organizational
practices contributed to the problem?
Ans:
Research and Development:
Establishment of Samsung has consistently been on innovative work. Consumption in
these divisions brought about the organization having a wide scope of item portfolio among its
rivals. These incorporate tablet, camcorder, cell phone, camera, TV/video/sound, Memory
Cards, PC, and different embellishments. They have 34 R&D (innovative work) focuses working
around the world. It burned through US$14.857 billion out of 2017 on

Award Winning Brand:

Samsung's situation as a pioneer for advancement is upheld with believability.
Samsung has won numerous honors for its contributions. Samsung has been granted the CES
(Consumer Electronics Show) attributable to its structures and items for 14 back to back years.
It proceeded to get 36 CES grants in 2018 alongside 400 additional honors inside a time of 14
years. It additionally made sure about 7 successes at the (IDEA) International Design Excellence
Awards.

Naturally Friendly Innovations:

Samsung has upgraded its image notoriety through its earth well-disposed
developments. It made sure about its positioning at ninth situation in the Top 30 Tech and
Telecom organizations of the EPA's 2016 Green Power Partner list. It likewise got the
Environmental Protection Agency's (EPA) yearly ENERGY STAR Partner of the Year Excellence
Award for five continuous years. Different organizations don't share this accomplishment and
consequently expands Samsung's allure over all business lines.
Fortification in the Asian Markets:
Samsung holds a fortress in the Asian markets, especially India and China. The two India's and
China's business markets are developing significantly which is the reason Samsung has made
the most of the chance and boost in these nations in like manner.
Samsung’s organizational practices contributed to the problem:
1. Accept and Value Customer Feedback
2. Use Effective Problem-Solving Techniques
3. Use Advanced Quality Product Planning
4. Know and Understand the Real Cost of Quality
5. Have the Right Policies and Procedures in Right Place
6. Never Lose Customer Focus
7.

Q3: Analyze the timeline of key events during management of the recall crisis of
the Galaxy Note 7. Identify which actions were significant and why. Recommend
other communication strategies that could have been implemented.
Ans:
TIME LINE ANALYSIS OF SAMSUNG GALAXY NOTE 7 DEBACLES in 2016

Aug 2 Unveiling of Galaxy Note 7 In New York.

Received rave reviews and was considered better than Apple iPhone by
many reviewers.

Aug 19 Note 7 starts selling in 10 markets including USA and South Korea

Aug 24 First report of an explosion.

Location: South Korea

Aug 31 to Samsung delays shipment to South Korean Carriers

Sep 2 Sales open in China. Then, Samsung announces global recall of 2.5 million
Note 7s
Sep 8 The Federal Aviation Administration of the US advises not to switch on Note
to 7 on airplanes.
Sep 19 US Consumer Product Safety Commission urges people to stop using their
phone US Consumer Product Safety Commission announces recall of 1
million Note 7s
US consumer files a law suit against Samsung due to burns sustained on
account of phone explosion
Samsung says battery overheating causing the issue
Samsung initiates exchange program in South Korea

Sep 21 Verizon and Sprint start taking orders of new Note 7s

to Korean agency for Technology and Standards orders Samsung to
conduct extra battery safety measures for Note 7
Sep 29
Samsung postpones re-instating Note 7 by 3 days in South Korea
Samsung claims that now 1 million people are using Note 7 with a
safe battery

Oct 1 Samsung resumes selling Note 7s in South Korea

to A Southwest airline evacuated due to smoke from Note 7 on board
Oct 9 AT&T and T-Mobile stop issuing Note 7s due to safety concerns
Samsung announces delay of Note 7 shipments due more phones
catching fire. It says it will do more inspection and quality control

Oct 10 Samsung halts sales and production of Note 7

It asks customers to stop using phones
One of a kind distinguishing proof of the Galaxy Note 7 which are being returned because of
this issue. Proper labour to be set up to deal with such a high scale review. Giving the clients an
entrance of Online programming where they can enter in their Mobile interesting ID number
and check if their battery is influenced or not. A complementary helpline to address the issue.
A legitimate transportation office to be set up to deal with the trade, as Nokia did when they
confronted a comparable issue. The 5-month time span to make sense of the issue and issue
the review caused the organization to lose the sheen, in this way a quicker reaction system
would have helped them control the harm. Presenting a vastly improved plan on the new
telephones whose Samsung Galaxy Note 7 were influenced in order to hold the brand abyss.
Being cautious in their way to deal with clients of guaranteeing them of nature of the gadget
without doing legitimate testing. The new Galaxy 7 ought not have been propelled since there
were earlier issues going on with the set. Web-based social networking ought to have been
utilized to get the message out.
Other communication strategies that could have been implemented
1. Notifying the client of the issues of detonating and overheating on all mediums like TV
and Radio and so on.
2. Directly and transparently saying 'sorry' to the client for example taking the full
proprietorship for the equivalent.
3. Apprising the client of the new when they come to buy another telephone and making
the trade at that point and their itself, while moving their telephone information safely.
4. Checking the current vault to connect the clients by means of telephone or mail or SMS,
to make them mindful of the issues.
5. Some kind of notice to make them mindful of the issue, at the same time letting them
know of a proposal in return.
6. Unique identification of the Mobile phones which are being returned due to this issue.
7. Appropriate manpower to be put in place to handle such a high scale recall.
8. Giving the customers an access of Online software where they can key in their Mobile
unique ID number and check if their battery is affected or not.
9. A toll-free helpline to address the issue.
10. A proper shipping facility to be put in place to handle the exchange, like Nokia did when
they faced a similar problem.
11. The 5-month time frame to figure out the issue and issue the recall made the company
lose the sheen, thus a faster response mechanism would have helped them control the
damage.
 12. Introducing a much better scheme on the new phones whose Samsung Galaxy Note 7
were affected so as to retain the brand chasm.
13. Being careful in their approach to customers of assuring them of quality of the device
without doing proper testing.
14. The new Galaxy 7 should not have been launched since there were prior issues going on
with the set.
15. Social Media should have been used to spread the word.

Q4: What went wrong with Samsung’s recall strategy?

Ans:

Q#5: Identify Samsung’s stakeholders. Which stakeholders did Samsung cater to

in the recall?
Ans:
Key stakeholders

 Koh Dong-Jih – Samsun’s mobile division chief

 Investors like Elliott Management Corp
 Lee Jae Young – Vice chairman of Samsung, Firm’s De facto head
 Suppliers of parts United states
 Consumer Product Safety Commission
 Explosion victims
 Mobile operators
 Customers
 Retailers and channel partners
 Media
 Other partners
 Airlines

The Stakeholders who were provided catered during the review were basically the survivors of
the blast and the clients who purchased Galaxy Note 7. The channel accomplices helped them
to supplant the flawed handset with new ones. Official statements were publicized through
media which spread the news to diminish further causalities. US Customer Item Security
Commission was one key stakeholder whom they passed up a major opportunity.
As a piece of review, Samsung apologized to clients, versatile administrators, channel
accomplices and colleagues.

Q6: What values did Samsung exhibit during the recall, and how did these
values affect Samsung’s actions?