The paper 'Samsung Galaxy Note 7 Crisis" is a good example of a management case study. Samsung is an Electronic company that produces some of the best electronics in the world. Since its inception, Samsung has been one of the global leaders in the electronic business. The company has been able to surpass companies like LG and Apple with its Tablets and Galaxy series phones. Samsung has built its brand over the years through making cheap electronics that are affordable to all classes of people. The company has its presence in many countries around the world which is quickly surpassing the presence of Nokia.
However, starting August 2016, the company received reports that its new Galaxy Note 7 phone was exploding. The company had to recall the phones which made the company lose revenue. The exploding phones crisis caused the company to have to rebuild its reputation in the electronics company and to regain its trust among the stakeholders. The crisis management plan is essential for a company to survive a crisis, the paper examines the company’ s crisis management plan for its phones Summary On August, 19.
2016, Samsung Electronics company released a new Galaxy Note 7 mobile phone. The phone had features that made to be one of the best phones in the world at the time. The phone which significant edge to edge display, waterproofing technique and an iris scanner captured the heart of phone lovers. The phone had a large battery than its predecessors. After one of its release, reports came from South Korea that the new phones from Samsung were exploding and catching after they were charged (Wee, 2016a).
Towards August of 2016 end, South Korea media announced that five of the Galaxy Note 7 had exploded or caught fire which made Samsung halt the shipment of the Galaxy Note 7 phones (Stephen, 2017). On September of 10 of 2016.the aviation authorities banned the Samsung devices on planes. Other authorities such as The Federal Aviation in America issued warnings against the use of these phones on planes. The government of Canada issued a statement that was aimed at ordering the recall of the phones while the government of Thailand restricted and banned the import of these phones.
Communication Corporation in America such as Verizon Communications stopped selling the devices and recalled the phones from the customers who had bought these gadgets from their stores (Weick, 2016). By September 14, Samsung had a market value of about USD 10 billion wiped from its share of the market share index. Samsung was forced to cancel the launch of its phones in other markets such as India. The consumer safety agency in America had received 92 reports about the overheating of the phones. The report also showed that owners of 26 phones had burns they received from the phones.
The American safety commission said the batteries of the phones were pinched. The pinching was causing short circuits and overheating in the phones (Ying, 2016). The Chinese consumers accused Samsung of being discriminative for failing to recall the devices that were sold in China. Other reports surfaced that the previous from Samsung which included Galaxy S7 and the Galaxy S7 Edge had similar problems. These phones were emitting smoke and catching fire in countries like the United Kingdom, the United States and the Philippines.
On 23rd September 2016, a cabin crew of the IndiGo flight that was coming from Singapore said that they had to use an extinguisher to douse a Samsung Galaxy phone. As a result of the scandals, Samsung lost more than USD 5 billion worth of revenues after the recall of the phones (Wee, 2017a).
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