samsung galaxy note 7 debacle case study solution

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Samsung Galaxy Note 7 Debacle

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Samsung galaxy note 7 debacle description.

In early September 2016, Samsung Electronics Co. Ltd. (Samsung), a leading manufacturer of smartphones headquartered in South Korea, released the new generation of its flagship smartphone, the Galaxy Note 7. Despite initial positive reviews and a strong market reception, just eight days later, Samsung voluntarily recalled 2.5 million of the smartphones, after receiving reports of the devices overheating and catching on fire. The problems persisted even with the replacement device, and the company decided to cease all production and sales of the Galaxy Note 7 in October 2016. Samsung faced a highly commoditized market, decreasing global demand, and increasing competition, but the company now also needed to deal with one of the biggest recalls in the history of the industry. What had gone wrong, and how could the company move forward?

Case Description Samsung Galaxy Note 7 Debacle

Strategic managment tools used in case study analysis of samsung galaxy note 7 debacle, step 1. problem identification in samsung galaxy note 7 debacle case study, step 2. external environment analysis - pestel / pest / step analysis of samsung galaxy note 7 debacle case study, step 3. industry specific / porter five forces analysis of samsung galaxy note 7 debacle case study, step 4. evaluating alternatives / swot analysis of samsung galaxy note 7 debacle case study, step 5. porter value chain analysis / vrio / vrin analysis samsung galaxy note 7 debacle case study, step 6. recommendations samsung galaxy note 7 debacle case study, step 7. basis of recommendations for samsung galaxy note 7 debacle case study, quality & on time delivery.

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Case Analysis of Samsung Galaxy Note 7 Debacle

Samsung Galaxy Note 7 Debacle is a Harvard Business (HBR) Case Study on Leadership & Managing People , Texas Business School provides HBR case study assignment help for just $9. Texas Business School(TBS) case study solution is based on HBR Case Study Method framework, TBS expertise & global insights. Samsung Galaxy Note 7 Debacle is designed and drafted in a manner to allow the HBR case study reader to analyze a real-world problem by putting reader into the position of the decision maker. Samsung Galaxy Note 7 Debacle case study will help professionals, MBA, EMBA, and leaders to develop a broad and clear understanding of casecategory challenges. Samsung Galaxy Note 7 Debacle will also provide insight into areas such as – wordlist , strategy, leadership, sales and marketing, and negotiations.

Case Study Solutions Background Work

Samsung Galaxy Note 7 Debacle case study solution is focused on solving the strategic and operational challenges the protagonist of the case is facing. The challenges involve – evaluation of strategic options, key role of Leadership & Managing People, leadership qualities of the protagonist, and dynamics of the external environment. The challenge in front of the protagonist, of Samsung Galaxy Note 7 Debacle, is to not only build a competitive position of the organization but also to sustain it over a period of time.

Strategic Management Tools Used in Case Study Solution

The Samsung Galaxy Note 7 Debacle case study solution requires the MBA, EMBA, executive, professional to have a deep understanding of various strategic management tools such as SWOT Analysis, PESTEL Analysis / PEST Analysis / STEP Analysis, Porter Five Forces Analysis, Go To Market Strategy, BCG Matrix Analysis, Porter Value Chain Analysis, Ansoff Matrix Analysis, VRIO / VRIN and Marketing Mix Analysis.

Texas Business School Approach to Leadership & Managing People Solutions

In the Texas Business School, Samsung Galaxy Note 7 Debacle case study solution – following strategic tools are used - SWOT Analysis, PESTEL Analysis / PEST Analysis / STEP Analysis, Porter Five Forces Analysis, Go To Market Strategy, BCG Matrix Analysis, Porter Value Chain Analysis, Ansoff Matrix Analysis, VRIO / VRIN and Marketing Mix Analysis. We have additionally used the concept of supply chain management and leadership framework to build a comprehensive case study solution for the case – Samsung Galaxy Note 7 Debacle

Step 1 – Problem Identification of Samsung Galaxy Note 7 Debacle - Harvard Business School Case Study

The first step to solve HBR Samsung Galaxy Note 7 Debacle case study solution is to identify the problem present in the case. The problem statement of the case is provided in the beginning of the case where the protagonist is contemplating various options in the face of numerous challenges that Samsung Galaxy is facing right now. Even though the problem statement is essentially – “Leadership & Managing People” challenge but it has impacted by others factors such as communication in the organization, uncertainty in the external environment, leadership in Samsung Galaxy, style of leadership and organization structure, marketing and sales, organizational behavior, strategy, internal politics, stakeholders priorities and more.

Step 2 – External Environment Analysis

Texas Business School approach of case study analysis – Conclusion, Reasons, Evidences - provides a framework to analyze every HBR case study. It requires conducting robust external environmental analysis to decipher evidences for the reasons presented in the Samsung Galaxy Note 7 Debacle. The external environment analysis of Samsung Galaxy Note 7 Debacle will ensure that we are keeping a tab on the macro-environment factors that are directly and indirectly impacting the business of the firm.

What is PESTEL Analysis? Briefly Explained

PESTEL stands for political, economic, social, technological, environmental and legal factors that impact the external environment of firm in Samsung Galaxy Note 7 Debacle case study. PESTEL analysis of " Samsung Galaxy Note 7 Debacle" can help us understand why the organization is performing badly, what are the factors in the external environment that are impacting the performance of the organization, and how the organization can either manage or mitigate the impact of these external factors.

How to do PESTEL / PEST / STEP Analysis? What are the components of PESTEL Analysis?

As mentioned above PESTEL Analysis has six elements – political, economic, social, technological, environmental, and legal. All the six elements are explained in context with Samsung Galaxy Note 7 Debacle macro-environment and how it impacts the businesses of the firm.

How to do PESTEL Analysis for Samsung Galaxy Note 7 Debacle

To do comprehensive PESTEL analysis of case study – Samsung Galaxy Note 7 Debacle , we have researched numerous components under the six factors of PESTEL analysis.

Political Factors that Impact Samsung Galaxy Note 7 Debacle

Political factors impact seven key decision making areas – economic environment, socio-cultural environment, rate of innovation & investment in research & development, environmental laws, legal requirements, and acceptance of new technologies.

Government policies have significant impact on the business environment of any country. The firm in “ Samsung Galaxy Note 7 Debacle ” needs to navigate these policy decisions to create either an edge for itself or reduce the negative impact of the policy as far as possible.

Data safety laws – The countries in which Samsung Galaxy is operating, firms are required to store customer data within the premises of the country. Samsung Galaxy needs to restructure its IT policies to accommodate these changes. In the EU countries, firms are required to make special provision for privacy issues and other laws.

Competition Regulations – Numerous countries have strong competition laws both regarding the monopoly conditions and day to day fair business practices. Samsung Galaxy Note 7 Debacle has numerous instances where the competition regulations aspects can be scrutinized.

Import restrictions on products – Before entering the new market, Samsung Galaxy in case study Samsung Galaxy Note 7 Debacle" should look into the import restrictions that may be present in the prospective market.

Export restrictions on products – Apart from direct product export restrictions in field of technology and agriculture, a number of countries also have capital controls. Samsung Galaxy in case study “ Samsung Galaxy Note 7 Debacle ” should look into these export restrictions policies.

Foreign Direct Investment Policies – Government policies favors local companies over international policies, Samsung Galaxy in case study “ Samsung Galaxy Note 7 Debacle ” should understand in minute details regarding the Foreign Direct Investment policies of the prospective market.

Corporate Taxes – The rate of taxes is often used by governments to lure foreign direct investments or increase domestic investment in a certain sector. Corporate taxation can be divided into two categories – taxes on profits and taxes on operations. Taxes on profits number is important for companies that already have a sustainable business model, while taxes on operations is far more significant for companies that are looking to set up new plants or operations.

Tariffs – Chekout how much tariffs the firm needs to pay in the “ Samsung Galaxy Note 7 Debacle ” case study. The level of tariffs will determine the viability of the business model that the firm is contemplating. If the tariffs are high then it will be extremely difficult to compete with the local competitors. But if the tariffs are between 5-10% then Samsung Galaxy can compete against other competitors.

Research and Development Subsidies and Policies – Governments often provide tax breaks and other incentives for companies to innovate in various sectors of priority. Managers at Samsung Galaxy Note 7 Debacle case study have to assess whether their business can benefit from such government assistance and subsidies.

Consumer protection – Different countries have different consumer protection laws. Managers need to clarify not only the consumer protection laws in advance but also legal implications if the firm fails to meet any of them.

Political System and Its Implications – Different political systems have different approach to free market and entrepreneurship. Managers need to assess these factors even before entering the market.

Freedom of Press is critical for fair trade and transparency. Countries where freedom of press is not prevalent there are high chances of both political and commercial corruption.

Corruption level – Samsung Galaxy needs to assess the level of corruptions both at the official level and at the market level, even before entering a new market. To tackle the menace of corruption – a firm should have a clear SOP that provides managers at each level what to do when they encounter instances of either systematic corruption or bureaucrats looking to take bribes from the firm.

Independence of judiciary – It is critical for fair business practices. If a country doesn’t have independent judiciary then there is no point entry into such a country for business.

Government attitude towards trade unions – Different political systems and government have different attitude towards trade unions and collective bargaining. The firm needs to assess – its comfort dealing with the unions and regulations regarding unions in a given market or industry. If both are on the same page then it makes sense to enter, otherwise it doesn’t.

Economic Factors that Impact Samsung Galaxy Note 7 Debacle

Social factors that impact samsung galaxy note 7 debacle, technological factors that impact samsung galaxy note 7 debacle, environmental factors that impact samsung galaxy note 7 debacle, legal factors that impact samsung galaxy note 7 debacle, step 3 – industry specific analysis, what is porter five forces analysis, step 4 – swot analysis / internal environment analysis, step 5 – porter value chain / vrio / vrin analysis, step 6 – evaluating alternatives & recommendations, step 7 – basis for recommendations, references :: samsung galaxy note 7 debacle case study solution.

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From a 'cultural meme' to a comeback kid: How Samsung overcame its Galaxy Note 7 fiasco

The company managed to pull the feat by holding itself accountable, getting to the root of the cause and then communicating that effectively to its employees and consumers.
It also used the opportunity to find a bigger brand purpose for itself and creating an internal culture of change that encourages and prides itself on taking risks.

In 2016, Samsung was blowing up — quite literally.

The phone maker was battling its biggest ever brand crisis, after defective Galaxy Note 7 smartphones began exploding around the world . A battery malfunction was threatening to permanently damage both its business and its reputation: its mobile sales were down 15% by October 2016 .

"We became a cultural meme, a daily announcement on every flight," said Pio Schunker, svp of integrated marketing communications at Samsung Mobile Communication, speaking at the Association of National Advertisers' Masters of Marketing Conference on Thursday. "There was wave after wave of negative commentary — not just from the press, but from consumers as well."

But a year later, the South Korean company seems to be on the path to a full recovery. Just last week, it went up from the seventh to the sixth position in the marketing consulting group Interbrand's 2017 Best Global Brands list , and saw a 9% increase in brand valuation despite the crisis. Samsungs's profits are up in 2017 and its new Galaxy 8 has been selling well, according to Marketwatch.

Here's how Samsung managed to pull its comeback:

By embracing accountability

When disaster struck, Samsung knew that it had to be proactive and take responsibility, according to Schunker.

"We knew we couldn’t afford the luxury of a fetal position and just lie there, so the first thing that we did to make things right was to take accountability," he said. "For Samsung, it wasn’t just the right thing to do, it was the only thing to do."

By building 'brand love'

Once the issue at hand was addressed, Samsung turned its attention towards recovering people's love and trust. It focused on finding a bigger purpose that both its employees and consumers could rally around, made its brand more inclusive globally and tried to create an internal culture of change.

" This time the stakes were much higher, because we not only had to recover from all the damage that had been done, but do it during one of the most competitive smartphone launch seasons we’d ever seen in advance of the S8 launch," he said. "We needed to reclaim our leadership."

The brand sought to break away from its "immensely fragmented brand identity which l acked warmth and humanity," and instead inspire purpose beyond just its bottomline. It tapped into its inherent DNA of relentless innovation, crystallizing that into a bigger brand purpose encapsulated in the tagline " Do What You Can’t.”

Bringing all its regions and markets together around a common vision ended up propelling the brand even further.

"The brand focus was incredibly empowering, helping in creating great work and scaling up the brand faster than HQ initiative could have done," he said.

By relying on its partners

Social media 'war rooms' — where brand and agency teams coalesced to take on tentpole events on social media in real time — may be a thing of the past. But desperate times call for desperate measures, as was Samsung's case when its phone scandal broke out last year.

According to Schunker, Samsung and its agencies set up a war room in the immediate aftermath of the crisis, monitoring media reports and consumer sentiment online day in and day out to make sure everyone was on the same page and up to speed on the latest.

"They were instrumental, we could not have done this without our agency partners," he said.

Watch: The Samsung Galaxy Note 9 is a $1,000 phone that's actually worth it

Main content

Remarkable Recovery: Samsung Crisis Management Case Study

Have you ever wondered how a global tech giant like Samsung managed to navigate a major crisis and bounce back stronger?

In the world of corporate governance, effective crisis management can be the difference between irreparable damage to a company’s reputation and a successful recovery.

In this blog post, we delve into a Samsung crisis management case study to learn about exploding batteries to the intricate strategies employed to restore trust.

Samsung’s journey offers valuable insights into the intricacies of crisis management in the digital age.

Join us as we explore the key lessons learned and best practices from this high-stakes situation, shedding light on the remarkable recovery efforts that propelled Samsung forward.

Let’s learn about sailing through tough times through Samsung crisis management case study

Background of Samsung History and growth of Samsung as a global conglomerate

Samsung, founded in 1938 by Lee Byung-chul, started as a small trading company in South Korea. Over the years, it steadily expanded into various industries, such as textiles, insurance, and retail.

In the 1960s, Samsung ventured into electronics, marking the beginning of its transformation into a global conglomerate.

With a focus on technological innovation and a commitment to quality, Samsung rapidly gained recognition for its consumer electronics products, including televisions and appliances.

Throughout the 1980s and 1990s, Samsung significantly diversified its business portfolio, entering the semiconductor, telecommunications, and shipbuilding industries.

This diversification strategy helped Samsung become a key player in multiple sectors, solidifying its position as a global leader. Notably, Samsung’s semiconductor division became one of the largest chip manufacturers in the world, supplying components to various electronic devices worldwide.

Samsung’s ascent continued in the 2000s, driven by its successful expansion into the mobile phone market. The introduction of the Galaxy series, powered by the Android operating system, catapulted Samsung to the forefront of the smartphone industry.

The company’s innovative designs, cutting-edge features, and aggressive marketing campaigns contributed to its rise as a major competitor to Apple’s iPhone.

With its global reach, Samsung has consistently ranked among the world’s largest technology companies, epitomizing South Korea’s economic prowess and technological advancements.

Samsung has also been considered one the best companies that successfully managed and implemented change initiatives.

Overview of Samsung’s position in the technology industry

In the consumer electronics segment, Samsung has established itself as a dominant force. Its diverse product lineup encompasses televisions, smartphones, tablets, wearables, home appliances, and audio devices.

The Galaxy series of smartphones, in particular, has enjoyed immense popularity and has emerged as a fierce competitor to other industry giants. Samsung’s televisions are also highly regarded for their cutting-edge display technologies, such as QLED and MicroLED.

The company’s advancements in semiconductor technology have contributed to faster computing speeds, increased storage capacities, and improved energy efficiency.

Samsung’s influence extends beyond consumer electronics and semiconductors. The company is actively involved in telecommunications infrastructure, including the development of 5G networks and the production of network equipment.

Samsung has also made notable strides in the realm of software solutions, including its own mobile operating system, Tizen, and various software platforms for smart devices.

Samsung Galaxy Note 7 Crisis

The Note 7 battery issue marked a significant crisis for Samsung, leading to a widespread recall of the flagship smartphone and causing considerable damage to the company’s reputation.

The crisis began in September 2016 when reports emerged of Note 7 devices catching fire or exploding due to faulty batteries. These incidents raised concerns about consumer safety and triggered a wave of negative publicity for Samsung.

Upon receiving initial reports of battery-related incidents, Samsung initially responded by issuing a voluntary recall of the Note 7 in September 2016. The company acknowledged the problem and expressed its commitment to addressing the issue promptly and effectively.

Samsung attributed the battery malfunctions to a manufacturing defect, specifically a flaw in the design that caused a short circuit.

To ensure customer safety, Samsung advised Note 7 owners to power down their devices and refrain from using them. The company swiftly implemented measures to exchange the affected devices, offering customers the option to either replace their Note 7 with a new unit or receive a refund.

Samsung also collaborated with mobile network operators and retail partners to facilitate the recall process.

In its initial response, Samsung took steps to communicate with customers and the public about the issue. The company published official statements expressing regret for the inconvenience caused and assuring customers of its commitment to resolving the problem. Samsung emphasized its dedication to quality and safety, promising to conduct thorough investigations and implement necessary improvements to prevent similar incidents in the future.

Media coverage and public perception during the crisis

During the Note 7 crisis, media coverage played a significant role in shaping public perception and amplifying the negative impact on Samsung’s brand.

The crisis received extensive coverage from both traditional media outlets and online platforms, leading to widespread awareness and public scrutiny. Here’s an overview of media coverage and its influence on public perception:

News Outlets: Major news organizations across the globe reported on the Note 7 battery issue, highlighting incidents, the recall, and subsequent developments. Television news segments, newspapers, and online news articles extensively covered the crisis , emphasizing the potential safety risks and consumer concerns. The constant media attention contributed to the widespread dissemination of information and increased public awareness of the issue.
Online Platforms and Social Media: Social media platforms played a pivotal role in the crisis, enabling the rapid spread of information and user-generated content. Users took to platforms such as Twitter, Facebook, and YouTube to share their experiences, express concerns, and criticize Samsung’s handling of the situation. Viral videos, photos, and personal accounts of Note 7 incidents gained traction, further fueling negative sentiment and influencing public perception.
Expert Analysis and Opinions: Alongside news coverage, experts and industry analysts provided their insights and opinions on the crisis. Their assessments of Samsung’s response, the potential causes of the battery issue, and the implications for the company’s brand reputation contributed to the overall narrative. Expert opinions had the power to sway public perception and shape the understanding of the crisis.
Consumer Forums and Discussion Platforms: Online forums and discussion boards dedicated to technology and consumer experiences became hubs for discussions surrounding the Note 7 crisis. Consumers shared their frustrations, exchanged information, and warned others about potential risks. These platforms served as gathering places for individuals affected by the crisis and amplified the negative sentiment surrounding Samsung’s brand.

Financial implications and losses incurred by Samsung

The Note 7 crisis had significant financial implications for Samsung, resulting in substantial losses for the company. Here are some of the key financial impacts experienced by Samsung as a result of the crisis:

Recall and Replacement Costs: The recall and replacement process incurred significant costs for Samsung. The expenses involved in collecting and replacing over 2 million of Note 7 devices, including logistics, shipping, and refurbishment, were substantial. The costs also encompassed the testing and certification of replacement devices to ensure their safety. The total recall cost was estimated at $5.3 billion.
Decline in Sales and Market Share: The crisis had a detrimental impact on Samsung’s sales and market share in the smartphone industry. As consumer confidence in the Note 7 and Samsung’s brand reputation declined, potential buyers shifted their preferences to alternative smartphone options. The decline in sales of the Note 7, coupled with the negative impact on the perception of other Samsung products, led to a loss of market share for the company.
Stock Price Decline: The Note 7 crisis had an immediate impact on Samsung’s stock price. News of the battery issue, recalls, and subsequent negative media coverage led to a decline in Samsung’s stock value. Samsung shares fell approximately to 7 percent right after 2 months of the crisis.

Crisis Management Strategy Employed by Samsung

Following are the key aspects of Samsung Galaxy Note 7 crisis management strategy:

Immediate actions taken by Samsung to address the crisis

In the face of the Note 7 crisis, Samsung swiftly implemented a range of immediate actions to address the situation and mitigate the impact on consumers and the company’s brand reputation. Here are some of the key actions taken by Samsung:

Voluntary Recall: As soon as reports of battery issues emerged, Samsung initiated a voluntary recall of the Note 7. This proactive step demonstrated the company’s commitment to consumer safety and willingness to take responsibility for the problem.
Temporary Production Halt: To address the root cause of the battery issue, Samsung temporarily halted production of the Note 7. This decision aimed to prevent further distribution of potentially defective devices and allow for thorough investigations and corrective measures.
Transparent Communication: Samsung made efforts to communicate openly and transparently about the crisis. The company issued official statements and press releases acknowledging the problem, expressing regret for the inconvenience caused, and reassuring customers of its commitment to resolving the issue. Transparent communication was crucial in maintaining trust and providing timely updates to affected consumers.
Collaboration with Authorities: Samsung collaborated closely with regulatory authorities and industry experts to investigate the battery issue comprehensively. By engaging external expertise, the company aimed to identify the root cause and develop effective solutions. This collaboration demonstrated Samsung’s commitment to finding the best possible resolution.
Customer Support and Safety Guidelines: Samsung provided clear instructions to consumers regarding the use of Note 7 devices, emphasizing the importance of safety. The company advised customers to power down their devices, participate in the recall, and utilize alternative devices in the interim. This approach prioritized customer safety and aimed to prevent further incidents.
Increased Battery Testing and Safety Measures: Samsung implemented enhanced battery testing procedures and stringent safety measures to prevent similar incidents in the future. The company adopted more rigorous quality control processes, including additional safety certifications and testing standards, to ensure the highest levels of product safety.

Communication strategies employed by Samsung

Samsung employed various communication strategies to address the Note 7 crisis and manage the impact on its brand reputation. Effective communication was crucial in maintaining transparency, addressing consumer concerns, and rebuilding trust. Here are some of the communication strategies employed by Samsung:

Official Statements and Press Releases: Samsung issued official statements and press releases to provide updates on the progress of the recall, investigations, and corrective actions. These statements expressed remorse for the inconvenience caused and reiterated the company’s commitment to customer safety. Clear and concise communication helped keep customers informed and reassured them that Samsung was actively working to resolve the issue.
Direct Customer Communication: Samsung directly communicated with customers to provide instructions and updates on the recall process. The company utilized various channels such as email, SMS messages, and notifications through its official website and smartphone apps. This direct communication ensured that customers received important information and guidance regarding the recall and replacement program.
Social Media Engagement: Samsung actively engaged with customers and the public on social media platforms, including Twitter, Facebook, and YouTube. The company responded to customer queries, addressed concerns, and provided updates on the progress of the recall. By engaging in two-way communication, Samsung demonstrated its willingness to listen, respond, and provide assistance to affected customers.
Collaboration with Industry Experts: Samsung collaborated with industry experts, battery manufacturers, and regulatory authorities to investigate the root cause of the battery issue. This collaboration was communicated to the public, showcasing Samsung’s commitment to finding solutions and ensuring that the necessary expertise was involved in resolving the crisis.
Advertisements and Marketing Campaigns: Samsung launched advertising and marketing campaigns focused on rebuilding trust and emphasizing its commitment to quality and safety. These campaigns highlighted Samsung’s dedication to addressing the issue and regaining consumer confidence. Advertisements often emphasized the company’s rigorous testing procedures and quality control measures to assure customers of the safety of its products.
CEO Apology: Samsung’s CEO issued a public apology, taking personal responsibility for the crisis and expressing regret for the inconvenience and concern caused to customers. The CEO’s apology aimed to convey sincerity, empathy, and a commitment to rectifying the situation, while also reinforcing the company’s accountability and determination to regain trust. The apology was published on a full page in 03 major US newspapers – the Wall Street Journal, The Washington Post and The New York Times.

Collaborations with regulatory authorities and industry experts

Samsung worked closely with government agencies and regulatory bodies in various countries where incidents related to the Note 7 were reported. The company shared information, conducted investigations, and cooperated with authorities to ensure compliance with safety regulations and guidelines. Collaboration with government agencies helped align efforts to address the crisis and establish industry-wide safety standards.

In the United States, Samsung collaborated with the CPSC, an independent federal agency responsible for ensuring the safety of consumer products. Samsung worked together with the CPSC to investigate the battery issue and coordinate the recall process. This collaboration ensured that the recall efforts followed established safety protocols and provided consumers with accurate information.

Samsung collaborated with battery manufacturers to investigate the specific manufacturing defects that caused the battery issue. The company worked closely with these partners to analyze the battery designs, manufacturing processes, and quality control measures. By involving battery manufacturers in the investigation, Samsung aimed to identify the root cause and implement corrective actions to prevent similar issues in the future.

Samsung engaged independent testing labs to conduct thorough assessments of the Note 7 batteries and verify the effectiveness of corrective measures. These labs specialized in battery testing and certification, providing expertise and unbiased evaluation of the battery performance and safety. Collaboration with independent testing labs helped validate Samsung’s efforts to address the battery issue and instill confidence in the effectiveness of the solutions.

Post-Crisis Recovery and Rebuilding

Samsung implemented more stringent quality control measures across its product development and manufacturing processes. This included enhanced battery testing protocols, increased inspections, and stricter quality assurance standards. By demonstrating a commitment to producing reliable and safe products, Samsung aimed to rebuild customer trust.

Extended Warranty and Customer Support: Samsung extended warranty periods for existing and new devices, including the Note 7, to provide customers with added assurance. The company also enhanced its customer support services, ensuring that customers could easily access assistance, product information, and technical support. These initiatives aimed to demonstrate Samsung’s commitment to customer satisfaction and support.

Launch of subsequent product lines and their impact on brand perception

Following the Note 7 crisis, Samsung launched subsequent product lines, including flagship smartphones like the Galaxy S8 and subsequent iterations. These launches played a crucial role in shaping brand perception and rebuilding trust. Key factors that influenced brand perception and the recovery process include:

Emphasis on Safety and Quality: Samsung placed a strong emphasis on safety and quality in its subsequent product launches. The company implemented rigorous testing procedures and introduced new safety features to ensure the reliability and safety of its devices. By highlighting these improvements, Samsung aimed to regain customer trust and reassure them of its commitment to producing high-quality products.
Positive User Experience: Samsung focused on delivering positive user experiences with its new product lines. This included improvements in design, performance, and functionality to enhance customer satisfaction. By providing users with exceptional products, Samsung aimed to rebuild its reputation and generate positive word-of-mouth, contributing to brand recovery.
Brand Messaging and Marketing: Samsung’s marketing efforts during subsequent product launches were carefully crafted to reinforce positive brand associations and regain customer trust. The company emphasized innovation, customer-centricity, and the commitment to quality and safety. Marketing campaigns highlighted features, benefits, and technological advancements to create a positive brand image and overcome the negative perceptions associated with the Note 7 crisis.

Final Words

Samsung’s handling of the Note 7 crisis serves as a case study in crisis management. Despite the significant financial and reputational setbacks, the company took proactive steps to address the crisis, regain customer trust, and prevent similar incidents in the future.

The Samsung crisis management case study highlights the importance of swift and transparent communication, customer-centric actions, and continuous improvement in product safety and quality. By effectively addressing the crisis, Samsung was able to navigate the challenging situation and rebuild its brand, reaffirming its position as a leading global technology company.

Overall, the Samsung crisis management case study provides valuable insights into how a company can recover from a major setback, restore customer trust, and strengthen its position in the market through strategic actions and a relentless commitment to customer satisfaction and product excellence.

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Samsung Note 7 Failure Case Study

Introduction, conclusions.

In August 2016, several Samsung Galaxy Note 7 Smartphones were reported to explode. The manufacturer called upon its engineers hurriedly to diagnose the source of the problem. The initial report pointed to a fault in batteries procured from one of the suppliers. This led to a recall of these smartphones and continued shipping of the same mobile device with batteries from a different supplier [1]. However, the issue surfaced again with reports of the new replacements also exploding, prompting the company to halt the entire Samsung Galaxy Note 7 production. The failure, subsequent recall, and the complete halt of the Galaxy Note 7 production have had social and legal ramifications.

This Samsung Galaxy Note 7 Failure case study aims to analyze the issue, its history, and the aftermath, including the crisis management and the discovered reasons behind the battery explosion.

Smartphones have very advanced computing capabilities, such as high-definition cameras, media players, sensors, GPS navigation units, accelerometers, and gyroscopes, among other features. For most Smartphones, an Android operating system is used. The features need to be supported by stable memory, batteries with the correct power output, an efficient power system, and a good shell to operate efficiently. The risk of failure of Smartphones is mainly in the memory access violation and mobile phone hardware such as the batteries and the shell [2]. Overall, studies on the failure of Smartphones have pointed to two major types of failures, i.e., accidental or malfunction of the software or Android. For this report, the focus is on the hardware or software malfunction.

Samsung Galaxy Note 7 Failure

The explosion of the Samsung Galaxy Note 7 resulted in the recall of the phones [1]. The phones that were overheating were analyzed to establish the causes of the explosion. The techniques employed for the analysis were Failure Mode and Effect Analysis (FMEA). This entails a critical analysis of the entire lifecycle of a product. It analyzes the specifications of the design, operation, and maintenance by establishing the system functions, identification of the failure modes in the system, and functions which then determine the effects and possible causes [3]. The analysis covers both the software and hardware functionalities.

The FMEA is used by engineers in the design stages of a product or post-analysis in the case of issues arising. The initial FMEA conducted after the failure was hardware FMEA. This is a straightforward analysis guided by the understanding that mechanical, electronic, and electrical failures happen due to some issues, such as unanticipated stress, overload, and faulty wiring. The analysis by the engineers concluded that lithium-ion batteries from one of the suppliers had a fault. Part of the battery’s inside was coiled incorrectly, causing stress to the battery.

By performing critical risk analysis, the possible malfunction of software or hardware can be established before the product is launched into the market. The critical failure modes can be ascertained by calculating the Risk Priority Numbers (RPN) through brainstorming [2]. This helps to establish the potential areas of failure and the possible degree of damage. As a result, mitigation measures are taken before the product is released to ensure that the risk is contained.

It is thus paramount that Samsung should have carried out a thorough risk analysis for all the hardware and software from the suppliers before launching the product. Also, after the recall, the analysis was hurriedly carried out; hence, the conclusion that the failure was from a battery procured from a particular manufacturer was theorized rather than being scientifically proven with quantifiable data.

Discussion on Samsung Note 7 Failure

The failure of Samsung’s Galaxy Note 7 has had enormous financial implications. It is estimated that it may lead to a revenue loss of over $ 5 billion. Even though the company could easily deal with the loss of income, the failure has great social and legal ramifications. For instance, the failure has already attracted class-action lawsuits against the company, which touch on how the recall and replacement were carried out.

Also, there is a high likelihood of lawsuits that relate to the damages and injuries caused by the explosions. These lawsuits will affect the consumer perception of Samsung’s Smartphones. For example, the Google search for ‘Samsung Explosion’ spiked in August and September despite the recall being only for Galaxy Note 7. The failure has also had social implications for Samsung phone users. Some airlines in the U.S. do not allow passengers to use any Samsung phone onboard their planes.

The failure of any product leads to unintended consequences for the manufacturer and the consumers. Even though investigations are still ongoing to establish the exact cause of the Samsung Note 7 explosions, Samsung’s engineers need to give more care to the materials used to develop the software and hardware of its Smartphones. Also, there should be a critical risk analysis in which an RPN for each possible failure mode is calculated before a product is released to the market. This will ensure that parameters with high-risk factors are properly investigated, and risk reduction measures are taken in advance.

B. Chen and C. Sang-Hun, “Why Samsung Abandoned Its Galaxy Note 7 Flagship Phone”, The New YorK Times, 2016.
K. Krishnakanth and P. Kavipriya, “Android application development for environment monitoring using Smartphones”, International journal of Mobile Network Communications & Telematics, vol . 3, no. 3, pp. 41-45, 2013.
S. Malek, R. Roshandel, D. Kilgore and I. Elhag, “Improving the reliability of mobile software systems through continuous analysis and proactive reconfiguration,” Proceedings of the 31st International Conference on Software Engineering-Companion Volume. ICSE-Companion 2009. Vancouver, BC, Canada, pp. 275-278, 2009.
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IvyPanda. (2023, October 29). Samsung Note 7 Failure Case Study. https://ivypanda.com/essays/failure-analysis-samsung-galaxy-note-7/

"Samsung Note 7 Failure Case Study." IvyPanda , 29 Oct. 2023, ivypanda.com/essays/failure-analysis-samsung-galaxy-note-7/.

IvyPanda . (2023) 'Samsung Note 7 Failure Case Study'. 29 October.

IvyPanda . 2023. "Samsung Note 7 Failure Case Study." October 29, 2023. https://ivypanda.com/essays/failure-analysis-samsung-galaxy-note-7/.

1. IvyPanda . "Samsung Note 7 Failure Case Study." October 29, 2023. https://ivypanda.com/essays/failure-analysis-samsung-galaxy-note-7/.

Bibliography

IvyPanda . "Samsung Note 7 Failure Case Study." October 29, 2023. https://ivypanda.com/essays/failure-analysis-samsung-galaxy-note-7/.

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Case Study Solution

Samsung galaxy note 7 debacle case study help.

Samsung Galaxy Note 7 Debacle/Convertible The company is currently using its proprietary software called Xcode build system to build a “loud-box-like” Galaxy Note 7 on an off-the-shelf device. The Xcode build system uses the latest “mike” 4.0 + Android 5 (W8/11) 8 framework for build at an SDK level as the source code and prebuilt code for the build system. The complete Xcode project (including app files developed by the public domain) makes up the basis for the project, which is being released this month. You will find instructions below to show the steps for production build of this new version of Xcode. There is no need to create a new app on your phone, because there is a “desktop” app running on your phone! How to build this new version of Xcode Installing Xcode Install the Xcode framework with the Xcode developer tools. Start the build environment and run “maketools”.

BCG Matrix Analysis

To use the debugger that will appear if you create a release build, look at the dialog “Create release build” below. In the list of packages within your package.json, open the “release” zip file. Click over the “update” button with the “sass-builder” sub-folder. Then click “Update” button with the “update the release” folder. Then click “Build” button to build the Xcode app in your home folder. linked here is this new app? That is something you probably haven’t heard about yet.

Much like the existing “keyboard” app. Its features I think seem incredibly cool way. However, the build output looks like this: $ maketools build/maketools app-keyboard.txt In the latest build directory looks like this: Maketools BuildOutput build/maketools/maketools-keyboard.txt But the most interesting part of the build output looks like this: I do have a few other projects I need to get the build ready You can optionally run a number of commands like to quickly create a package that will launch Xcode on your device or store it in a file. You can also run the “run package as command” option in Xcode. In the “package installer” button, press the “control-H” key before running the command.

Alternatives

To make this a little different, I have added some boiler plate code that has been using the Mako SDK (build-ext) to build a new Xcode app and also run it into your device. I am a member of the Open Source Board of the Open Source Federation (OSF) of the Android Team. The OSF is all about the Android community and is comprised of four principal leadership groups from the OGF. Each group wants to encourage and coordinate the work of open-source apps. Please, note there is no official/free site asking for volunteers; the same is true for the OSF and other og tech team member teams. If you see this here prefer, you can search about Open Source in this site. Note: I am not a member of the OGF, no membership required, but if you want to get involved with the status updates for the various OGF member groups, please go to the OGF to go get some help! What is being done with the Mako Xcode firstly uses Mako to build an “official” Xcode app and then build a “configuration” package using the “makets” tools for the Xcode build environment built on the W8/11.

Porters Five Forces Analysis

Here is the full build. For each component, see the “Components” sections. Maken2 is MakenCore (wso2.org), which is coming in version 3.x and is replacing wso2test.config by the official and official MakenCore builds. Let’s find out more about Maken2: its core components (with most of the components discussed below) Before we know itSamsung Galaxy Note 7 Debacle: Some ‘Ride and Not So Dirty’ [UPDATE] Here’s a great rundown of our list of devices we liked and miss: we went back and forth looking for the best ones.

Case Study Help

And we had to go back and forth until we got the best ones. This looks like it’s going to take some trying. Back in the late 90s, Sony’s A800 that had a dedicated camera with integrated audio recording in it was one of the best new ideas that Sony’s phone had come out of. It seems a little duds, with the “play” and “drop” buttons a little different from what you’d expect. Today’s Sony flagship has only two calls, in the lower calling button as well as a voice one. We’ve liked a lot from those call-in devices; as far as we know there’s no connection to the phone back home. Every time someone calls into the phone, the little button on the back of the phone, which appears to have 1G charge, suddenly works.

Porters Model Analysis

So we’ve stuck to that Sony Note 7 call-in display system and tried it out on a Play with no charge. A screen is still a blank; we are pretty impressed that it worked. We’ve tried several other Galaxy Note 7 devices, with click here now results. This one, by one manufacturer from Eirian did it again and again, leaving a clear picture of what to expect: a display screen with all the controls on the screen, except for 2GB up- and down-clicked in a classic voice type like a phone. It’s still a beautiful LCD screen (to-be-sunken-2Gb), but we liked seeing the screen work when the camera is taking your picture. As soon as you put things together it worked and is possible to use with this device rather well. Even if the phone can’t be sold anymore we’re afraid to install it.

But with all the experience our Samsung phone has with the Galaxy S series (I don’t really recommend charging to a S6 because that’s because you get like-minded messages if that’s what you want to get), it seems a little different than other Samsung phone models it could be. In summary, this is an interesting device (as big as a S6 and makes it look pretty great) that fits a few more reasons we like it, but it could prove to be an extremely useful one now that our phones are selling more than what we wanted. Although we don’t use tablets for stuff of that nature, we’ve used a few of these types of websites, with an example showing you some of the different ways a phone has been put together. In the UK we use Weberskule (Webster website). My girlfriend likes her phone a bit more and is wary of it more than us and she has the extra bother to use it in public after spending the last 18 months studying over the phone. But as we’ve said, we’ll probably actually buy the actual product itself. If you ask Facebook about any website or site on the phone that sends you message on facebook, they’ll tell you to set up an online plan to go through it.

PESTEL Analysis

This gives you more information about it, in particular to how it works and you can even tell when it’s working. We were trying that on five of them (via the contact list) and had to sitSamsung Galaxy Note 7 Debacle is the best of the series. Galaxy Galaxy Note 7 is top-tier, hand-held why not find out more that look average and take two or three times as hard as the ones we’ve known since the HTC One. We took the same test in the HTC One V2, which took a couple of months of waiting and got us to the points where we are always disappointed with us, but our results are going to have to disappoint. The Note 7 Debacle At first glance this minor change in hardware could seem like a minor upgrade, but a lot can accumulate as we get more and more specs to cover the changes, each patch has to be broken down as the test has been completed and all of the chipsets have been updated for the next test. After downloading a couple of apps and tuning the system for our performance tests, we have to figure out how we can get these keys working in our phone. When doing so we tried to use the same hardware to start our phone to its very right, but it didn’t seem like this is how the buttons worked in most phones.

Marketing Plan

And yes it’s better for batterylife than anything else. Android Android – 975 Took a couple of months while we have got the handset unlocked. This basically means that Android is still getting the standard version of the top-tier Android phone which is now fully functional. Being that we were at the most of those days I was getting tired of the outdated phone, and we decided to make this model next steps in the development timeframe, almost before we got the unlocked one. Starting with HTC One V2 we finally got the phone unlocked, using the same chip setting used on the HTC One V2. This means that we had to try and use both hardware in one country to experiment with the newest device on the market, I was totally unsure whether to head off with the HTC One V2, or let the smartphone enter a new position at home. After much searching the phone wasn’t that bad and we could definitely move on to a more familiar phone.

Case Study Analysis

It takes about a half more to get the handset to the specs in the HTC One V2 and it is a little too long to have two handsets with the same 3.7-in. 4.5-inch display, but link sure this is a big ‘what about this phone?’ We have a few minor differences compared to the HTC One V2, but just got to do some testing. We have a lot of features built in and don’t have any surprises to come up with. We are basically in the same state on Android Honeywell, but the HTC One V2 is pretty much the same but the only difference is that we now have Android 7, native phone support, and there are some keyboard shortcuts on the Chrome browser to help install the new Android 5.0.

Financial Analysis

1. Unfortunately they aren’t working in the browser. When you’re re-testing you might want to check a few things; here are my suggestions: Even though the HTC One V2 is a desktop device, we have a 5-card keyboard with instructions and notes as well as instructions to use. This is a much longer wheelboard, so to update this one we will have it updated more advanced, but only really need two handsets to get this over from the launch side. Now the HTC One V2 will be shipped with a

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Samsung galaxy note 7 debacle change management analysis & solution, hbr change management solutions, leadership & managing people case study | john lee, chloe zheng, dominic s.k. lim, case study description.

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What is Change Management Definition & Process? Why transformation efforts fail? What are the Change Management Issues in Samsung Galaxy Note 7 Debacle case study?

According to John P. Kotter – Change Management efforts are the major initiatives an organization undertakes to either boost productivity, increase product quality, improve the organizational culture, or reverse the present downward spiral that the company is going through. Sooner or later every organization requires change management efforts because without reinventing itself organization tends to lose out in the competitive market environment. The competitors catch up with it in products and service delivery, disruptors take away the lucrative and niche market positioning, or management ends up sitting on its own laurels thus missing out on the new trends, opportunities and developments in the industry.

What are the John P. Kotter - 8 Steps of Change Management?

Eight Steps of Kotter's Change Management Execution are -

1. Establish a Sense of Urgency
2. Form a Powerful Guiding Coalition
3. Create a Vision
4. Communicate the Vision
5. Empower Others to Act on the Vision
6. Plan for and Create Short Term Wins
7. Consolidate Improvements and Produce More Change
8. Institutionalize New Approaches

Are Change Management efforts easy to implement? What are the challenges in implementing change management processes?

According to authorlist Change management efforts are absolutely essential for the surviving and thriving of the organization but they are also extremely difficult to implement. Some of the biggest obstacles in implementing change efforts are –

Change efforts are often targeted at making fundamental aspects in the business – operations and culture. Change management disrupts are status quo thus face opposition from both within and outside the organization.
Change management is often a lengthy, time consuming, and resource consuming process. Managements try to avoid them because they reflect negatively on the short term financial balance sheet of the organization.
Change efforts are often made by new leaders because they are chosen by board to do so. These leaders often have less trust among the workforce compare to the people with whom they were already working with over the years.
Change management efforts are made when the organization is in dire need and have fewer resources. This creates silos protection mentality within the organization.
Change efforts create an environment of uncertainty in the organization that impacts not only the productivity in the organization but also the level of trust in the organization.

Samsung Galaxy Note 7 Debacle SWOT Analysis, SWOT Matrix, Weighted SWOT Case Study Solution & Analysis

How you can apply Change Management Principles to Samsung Galaxy Note 7 Debacle case study?

Leaders can implement Change Management efforts in the organization by following the “Eight Steps Method of Change Management” by John P. Kotter.

Step 1 - Establish a sense of urgency

What are areas that require urgent change management efforts in the “ Samsung Galaxy Note 7 Debacle “ case study. Some of the areas that require urgent changes are – organizing sales force to meet competitive realities, building new organizational structure to enter new markets or explore new opportunities. The leader needs to convince the managers that the status quo is far more dangerous than the change efforts.

Step 2 - Form a powerful guiding coalition

As mentioned earlier in the paper, most change efforts are undertaken by new management which has far less trust in the bank compare to the people with whom the organization staff has worked for long period of time. New leaders need to tap in the talent of the existing managers and integrate them in the change management efforts . This will for a powerful guiding coalition that not only understands the urgency of the situation but also has the trust of the employees in the organization. If the team able to explain at the grass roots level what went wrong, why organization need change, and what will be the outcomes of the change efforts then there will be a far more positive sentiment about change efforts among the rank and file.

Step 3 - Create a vision

The most critical role of the leader who is leading the change efforts is – creating and communicating a vision that can have a broader buy-in among employees throughout the organization. The vision should not only talk about broader objectives but also about how every little change can add up to the improvement in the overall organization.

Step 4 - Communicating the vision

Leaders need to use every vehicle to communicate the desired outcomes of the change efforts and how each employee impacted by it can contribute to achieve the desired change. Secondly the communication efforts need to answer a simple question for employees – “What it is in for the them”. If the vision doesn’t provide answer to this question then the change efforts are bound to fail because it won’t have buy-in from the required stakeholders of the organization.

Step 5 -Empower other to act on the vision

Once the vision is set and communicated, change management leadership should empower people at every level to take decisions regarding the change efforts. The empowerment should follow two key principles – it shouldn’t be too structured that it takes away improvisation capabilities of the managers who are working on the fronts. Secondly it shouldn’t be too loosely defined that people at the execution level can take it away from the desired vision and objectives.

Samsung Galaxy Note 7 Debacle PESTEL / PEST / STEP & Porter Five Forces Analysis

Step 6 - Plan for and create short term wins

Initially the change efforts will bring more disruption then positive change because it is transforming the status quo. For example new training to increase productivity initially will lead to decrease in level of current productivity because workers are learning new skills and way of doing things. It can demotivate the employees regarding change efforts. To overcome such scenarios the change management leadership should focus on short term wins within the long term transformation. They should carefully craft short term goals, reward employees for achieving short term wins, and provide a comprehensive understanding of how these short term wins fit into the overall vision and objectives of the change management efforts.

Step 7 - Consolidate improvements and produce more change

Short term wins lead to renewed enthusiasm among the employees to implement change efforts. Management should go ahead to put a framework where the improvements made so far are consolidated and more change efforts can be built on the top of the present change efforts.

Step 8 - Institutionalize new approaches

Once the improvements are consolidated, leadership needs to take steps to institutionalize the processes and changes that are made. It needs to stress how the change efforts have delivered success in the desired manner. It should highlight the connection between corporate success and new behaviour. Finally organization management needs to create organizational structure, leadership, and performance plans consistent with the new approach.

Is change management a process or event?

What many leaders and managers at the Samsung Galaxy fails to recognize is that – Change Management is a deliberate and detail oriented process rather than an event where the management declares that the changes it needs to make in the organization to thrive. Change management not only impact the operational processes of the organization but also the cultural and integral values of the organization.

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Samsung Galaxy Note 7 Debacle

By: John Lee, Chloe Zheng, Dominic S.K. Lim

Length: 15 page(s)
Publication Date: Oct 31, 2017
Discipline: General Management
Product #: W17665-PDF-ENG

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Learning Objectives

The case is suitable for use in introductory business courses at both the undergraduate and MBA levels, including strategic management, marketing and operations management, and communications management. It offers students the opportunity to assume the decision-making position of an executive of a multinational conglomerate; gain exposure, at a basic level, to the diverse array of challenges during crisis management; understand the importance of effective communication to relevant stakeholders; practise management oversight on a layered issue; and study a recent and relevant example of a notable technological failure in recall history.

Oct 31, 2017

Discipline:

General Management

Geographies:

South Korea, United States

Ivey Publishing

W17665-PDF-ENG

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How Did Samsung Overcome the Galaxy Note 7 Crisis?

Samsung is an electronics giant known across the globe for its smartphones and other devices. The sales of Samsung smartphones have been booming, giving stiff competition to other leading smartphone brands. People worldwide have appreciated Samsung’s flagship smartphones, such as Galaxy S5, Galaxy S6, and Galaxy S7, among others. However, things started going south with the launch of the Galaxy Note 7 (in August 2016), the successor to the Galaxy S6.

The Galaxy S7 was initially welcomed wholeheartedly through record-high pre-orders and sales. But soon, this smartphone turned into a nightmare for consumers who bought it, which led to the Galaxy Note 7 crisis. The Galaxy Note 7 smartphones were bursting into flames across the world.

A young girl in Minnesota had burned her hand from a Galaxy Note 7 explosion. There were countless reports from across the globe complaining about how these phones were overheating and exploding like bombs. These phones were nothing short of explosives that the consumers were carrying in their pockets, and soon, airlines banned passengers with Galaxy Note 7 from boarding planes unless they switched off their smartphones. The Samsung Galaxy Note 7 crisis was something that the brand had never seen before.

What Led to the Galaxy Note 7 Crisis?

Samsung, at first, notified that these explosions were because of some defective pieces and launched an exchange program, where they encouraged consumers to exchange their Galaxy Note 7 smartphones for a new batch of the same model. However, things soon turned ugly when even the replacements started exploding.

Samsung could not understand the cause of the Galaxy Note 7 crisis. The next logical step was to initiate a major recalling program for these smartphones. However, this Samsung Galaxy Note 7 crisis negatively affected the sales and reputation of the brand. To regain the trust of its customers, it was pertinent to identify the root cause of this debacle.

Samsung tested the devices, including charging (wireless and fast charging), iris scanner, USB-C charger, software, manufacturing, etc. They also partnered with independent labs to conduct studies on the cause of the Samsung Note 7 crisis. Their findings were uniform: the batteries malfunctioned, leading to overheating and subsequent explosions.

How Did Samsung Deal With the Crisis?

Setting an example for all brands, Samsung dealt with the crisis rather impressively. We break it down below.

1. They showed accountability

Samsung was quick to acknowledge problems with the Galaxy Note 7 models. They did not shirk the responsibility when the Galaxy Note 7 crisis ensued. They held a press conference and admitted that they were aware of the explosions. Although, they did not have any information on the cause of those accidents at that point.

2. They were proactive

Samsung was proactive in exchanging the models of the first batch as they believed there was some manufacturing defect. However, when the replacements started exploding, they did not waste any time before they began to recall all the Galaxy Note 7 pieces off the market. They sent alerts through e-mails and messages to return the Galaxy Note 7 models. Their only priority was the safety of the people; that’s why they partnered with telecom companies to send software updates that would disable the phone’s charging function, which would render the smartphone useless.

The recall of all Galaxy Note 7 phones from the market cost Samsung six billion dollars. In October, Samsung finally stopped the production and sales of the Galaxy Note 7.

3. They thoroughly investigated to discover the cause

Samsung built a lab where 700 researchers tested 200,000 phones and 30,000 batteries.

It was essential to determine the fault with the smartphones to remedy the situation and salvage Samsung’s brand image . They tested the phones under extreme conditions to emulate the circumstances when the phones exploded and found fault in their batteries. They communicated their findings to the media.

4. They brought in new quality check measures

Samsung devised a new and multi-step quality and safety check that all its manufacturers must follow. In addition, Samsung has made several internal changes since the Galaxy Note 7 crisis, like adopting more advanced safety measures, changing leadership, bringing in new members to do damage control, etc. Their challenge was not only to deal with the Samsung Note 7 crisis but to earn back the loyalty and trust of the customers.

5. They improved overall processes

Samsung went the extra mile to show that it could design and manufacture stable, high-end smartphones and that they were no less than any of its competitors. The company conducted studies across the various departments and made the necessary changes to improve multiple aspects of the smartphone manufacturing processes. As a result, future smartphones released will be the most tested devices with fewer bugs and top-notch hardware.

Samsung’s proactive attitude and the desire to be better have struck a chord with its loyal customers. As a result, Samsung has significantly revived its losses and has proved to be worthy of customers’ love and support over these years.

6 Learnings from the Samsung Note 7 Crisis Management

Here are a few lessons to be learned from the Samsung Galaxy Note 7 crisis management.

1. Acknowledge the problem

Samsung’s quick acceptance of its faulty Galaxy Note 7 pieces showed the way for other brands to take ownership of their mistakes.

2. Act quickly

It is crucial to be proactive in such situations to determine the cause and do damage control. Samsung recalled all the Galaxy Note 7 phones and completely halted the production and sales of the model in a matter of two months. Changing the policies and internal workings is essential to remedy the larger picture.

3. Improve safety standards

Samsung has also shared its learnings from this Galaxy Note 7 crisis with the world so that other companies and manufacturers can benefit from them and be more cautious while manufacturing components of smartphones. The Samsung Galaxy Note 7 crisis and the company’s increased attention to the quality and safety of its smartphones influenced other brands to up their quality check processes and introduce better standards to the industry.

4. Strive to identify the root cause

Instead of hiding information or not owning up to the problem, it is fundamental to know what caused the crisis. Samsung did not rest until it had unraveled the mystery of the Galaxy Note 7 crisis.

5. Communicate effectively

Samsung updated its customers about every new finding or decision regarding the Galaxy Note 7. This built a sense of trust among the customers who had been disappointed due to such mishaps.

6. Apply your learnings to future projects

Any crisis can be a lesson to move forward and improve. Samsung used this fiasco to improve its manufacturing process and quality checks and implemented improved methods for newer launches. These measures showed that Samsung cared for its customers, and hence, the customers did not irrevocably lose their faith in the brand.

Yes, Samsung made a huge mistake with the Note 7 and disappointed its customers. But it owned up to its mistake, acted instantly, worked tirelessly, and has come back stronger than before. The South Korean brand has shown it is larger than any Galaxy Note 7 crisis. Loyal customers have recognized their effort and put the explosion episode behind them. They have embraced the brand again. Through its efficient management of the debacle, Samsung has proved that a failure does not define the future of a brand as long as they decide to learn from it.

The Samsung Galaxy Note 7 crisis led to the brand halting the manufacturing and sales of only the Galaxy Note 7 model. However, Samsung Galaxy Note 8 recovered all the damage done by Galaxy Note 7. Galaxy Note 8, launched in 2017, was a flagship phone loved by the people.

Samsung acted hastily and exchanged the faulty Note 7 phones. Then, realizing there was a problem with the entire range and not just one isolated batch, they called back all the Note 7 phones from the market, even though they lost six billion dollars.

Samsung Note 7 had faulty batteries that got overheated and exploded like bombs. These explosions had harmed several people across the globe. Upon understanding that the phones’ batteries were faulty, Samsung decided to discontinue the range.

Samsung Galaxy Note 7 explosions were standalone instances. Samsung has implemented stringent quality assurance checks and battery safety systems to ensure such accidents never occur again.

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Samsung Galaxy Note 7 Debacle Case Study Solution

Posted by John Berg on Feb-16-2018

Introduction

Samsung Galaxy Note 7 Debacle Case Study is included in the Harvard Business Review Case Study. Therefore, it is necessary to touch HBR fundamentals before starting the Samsung Galaxy Note 7 Debacle case analysis. HBR will help you assess which piece of information is relevant. Harvard Business review will also help you solve your case. Thus, HBR fundamentals assist in easily comprehending the case study description and brainstorming the Samsung Galaxy Note 7 Debacle case analysis. Also, a major benefit of HBR is that it widens your approach. HBR also brings new ideas into the picture which would help you in your Samsung Galaxy Note 7 Debacle case analysis.

To write an effective Harvard Business Case Solution, a deep Samsung Galaxy Note 7 Debacle case analysis is essential. A proper analysis requires deep investigative reading. You should have a strong grasp of the concepts discussed and be able to identify the central problem in the given HBR case study. It is very important to read the HBR case study thoroughly as at times identifying the key problem becomes challenging. Thus by underlining every single detail which you think relevant, you will be quickly able to solve the HBR case study as is addressed in Harvard Business Case Solution.

Problem Identification

The first step in solving the HBR Case Study is to identify the problem. A problem can be regarded as a difference between the actual situation and the desired situation. This means that to identify a problem, you must know where it is intended to be. To do a Samsung Galaxy Note 7 Debacle case study analysis and a financial analysis, you need to have a clear understanding of where the problem currently is about the perceived problem.

For effective and efficient problem identification,

A multi-source and multi-method approach should be adopted.
The problem identified should be thoroughly reviewed and evaluated before continuing with the case study solution.
The problem should be backed by sufficient evidence to make sure a wrong problem isn't being worked upon.

Problem identification, if done well, will form a strong foundation for your Samsung Galaxy Note 7 Debacle Case Study. Effective problem identification is clear, objective, and specific. An ambiguous problem will result in vague solutions being discovered. It is also well-informed and timely. It should be noted that the right amount of time should be spent on this part. Spending too much time will leave lesser time for the rest of the process.

Samsung Galaxy Note 7 Debacle Case Analysis

Once you have completed the first step which was problem identification, you move on to developing a case study answers. This is the second step which will include evaluation and analysis of the given company. For this step, tools like SWOT analysis, Porter's five forces analysis for Samsung Galaxy Note 7 Debacle, etc. can be used. Porter’s five forces analysis for Samsung Galaxy Note 7 Debacle analyses a company’s substitutes, buyer and supplier power, rivalry, etc.

To do an effective HBR case study analysis, you need to explore the following areas:

1. Company history:

The Samsung Galaxy Note 7 Debacle case study consists of the history of the company given at the start. Reading it thoroughly will provide you with an understanding of the company's aims and objectives. You will keep these in mind as any Harvard Business Case Solutions you provide will need to be aligned with these.

2. Company growth trends:

This will help you obtain an understanding of the company's current stage in the business cycle and will give you an idea of what the scope of the solution should be.

3. Company culture:

Work culture in a company tells a lot about the workforce itself. You can understand this by going through the instances involving employees that the HBR case study provides. This will be helpful in understanding if the proposed case study solution will be accepted by the workforce and whether it will consist of the prevailing culture in the company.

Samsung Galaxy Note 7 Debacle Financial Analysis

The third step of solving the Samsung Galaxy Note 7 Debacle Case Study is Samsung Galaxy Note 7 Debacle Financial Analysis. You can go about it in a similar way as is done for a finance and accounting case study. For solving any Samsung Galaxy Note 7 Debacle case, Financial Analysis is of extreme importance. You should place extra focus on conducting Samsung Galaxy Note 7 Debacle financial analysis as it is an integral part of the Samsung Galaxy Note 7 Debacle Case Study Solution. It will help you evaluate the position of Samsung Galaxy Note 7 Debacle regarding stability, profitability and liquidity accurately. On the basis of this, you will be able to recommend an appropriate plan of action. To conduct a Samsung Galaxy Note 7 Debacle financial analysis in excel,

Past year financial statements need to be extracted.
Liquidity and profitability ratios to be calculated from the current financial statements.
Ratios are compared with the past year Samsung Galaxy Note 7 Debacle calculations
Company’s financial position is evaluated.

Another way how you can do the Samsung Galaxy Note 7 Debacle financial analysis is through financial modelling. Financial Analysis through financial modelling is done by:

Using the current financial statement to produce forecasted financial statements.
A set of assumptions are made to grow revenue and expenses.
Value of the company is derived.

Financial Analysis is critical in many aspects:

Decision Making and Strategy Devising to achieve targeted goals- to determine the future course of action.
Getting credit from suppliers depending on the leverage position- creditors will be confident to supply on credit if less company debt.
Influence on Investment Decisions- buying and selling of stock by investors.

Thus, it is a snapshot of the company and helps analysts assess whether the company's performance has improved or deteriorated. It also gives an insight about its expected performance in future- whether it will be going concern or not. Samsung Galaxy Note 7 Debacle Financial analysis can, therefore, give you a broader image of the company.

Samsung Galaxy Note 7 Debacle NPV

Samsung Galaxy Note 7 Debacle's calculations of ratios only are not sufficient to gauge the company performance for investment decisions. Instead, investment appraisal methods should also be considered. Samsung Galaxy Note 7 Debacle NPV calculation is a very important one as NPV helps determine whether the investment will lead to a positive value or a negative value. It is the best tool for decision making.

There are many benefits of using NPV:

It takes into account the future value of money, thereby giving reliable results.
It considers the cost of capital in its calculations.
It gives the return in dollar terms simplifying decision making.

The formula that you will use to calculate Samsung Galaxy Note 7 Debacle NPV will be as follows:

Present Value of Future Cash Flows minus Initial Investment

Present Value of Future cash flows will be calculated as follows:

PV of CF= CF1/(1+r)^1 + CF2/(1+r)^2 + CF3/(1+r)^3 + …CFn/(1+r)^n

where CF = cash flows r = cost of capital n = total number of years.

Cash flows can be uniform or multiple. You can discount them by Samsung Galaxy Note 7 Debacle WACC as the discount rate to arrive at the present value figure. You can then use the resulting figure to make your investment decision. The decision criteria would be as follows:

If Present Value of Cash Flows is greater than Initial Investment, you can accept the project.
If Present Value of Cash Flows is less than Initial Investment, you can reject the project.

Thus, calculation of Samsung Galaxy Note 7 Debacle NPV will give you an insight into the value generated if you invest in Samsung Galaxy Note 7 Debacle. It is a very reliable tool to assess the feasibility of an investment as it helps determine whether the cash flows generated will help yield a positive return or not.

However, it would be better if you take various aspects under consideration. Thus, apart from Samsung Galaxy Note 7 Debacle’s NPV, you should also consider other capital budgeting techniques like Samsung Galaxy Note 7 Debacle’s IRR to evaluate and fine-tune your investment decisions.

Samsung Galaxy Note 7 Debacle DCF

Once you are done with calculating the Samsung Galaxy Note 7 Debacle NPV for your finance and accounting case study, you can proceed to the next step, which involves calculating the Samsung Galaxy Note 7 Debacle DCF. Discounted cash flow (DCF) is a Samsung Galaxy Note 7 Debacle valuation method used to estimate the value of an investment based on its future cash flows. For a better presentation of your finance case solution, it is recommended to use Samsung Galaxy Note 7 Debacle excel for the DCF analysis.

To calculate the Samsung Galaxy Note 7 Debacle DCF analysis, the following steps are required:

Calculate the expected future cash inflows and outflows.
Set-off inflows and outflows to obtain the net cash flows.
Find the present value of expected future net cash flows using a discount rate, which is usually the weighted-average cost of capital (WACC).
If the value calculated through Samsung Galaxy Note 7 Debacle DCF is higher than the current cost of the investment, the opportunity should be considered
If the current cost of the investment is higher than the value calculated through DCF, the opportunity should be rejected

Samsung Galaxy Note 7 Debacle DCF can also be calculated using the following formula:

DCF= CF1/(1+r)^1 + CF2/(1+r)^2 + CF3/(1+r)^3 + …CFn/(1+r)^n

In the formula:

CF= Cash flows
R= discount rate (WACC)

Samsung Galaxy Note 7 Debacle WACC

When making different Samsung Galaxy Note 7 Debacle's calculations, Samsung Galaxy Note 7 Debacle WACC calculation is of great significance. WACC calculation is done by the capital composition of the company. The formula will be as follows:

Weighted Average Cost of Capital = % of Debt * Cost of Debt * (1- tax rate) + % of equity * Cost of Equity

You can compute the debt and equity percentage from the balance sheet figures. For the cost of equity, you can use the CAPM model. Cost of debt is usually given. However, if it isn't mentioned, you can calculate it through market weighted average debt. Samsung Galaxy Note 7 Debacle’s WACC will indicate the rate the company should earn to pay its capital suppliers. Samsung Galaxy Note 7 Debacle WACC can be analysed in two ways:

From the company's perspective, it can be analysed as the cost to be paid to the capital providers also known as Cost of Capital
From an investor' perspective, if the expected return on the investment exceeds Samsung Galaxy Note 7 Debacle WACC, the investor will go ahead with the investment as a positive value would be generated.

Samsung Galaxy Note 7 Debacle IRR

After calculating the Samsung Galaxy Note 7 Debacle WACC, it is necessary to calculate the Samsung Galaxy Note 7 Debacle IRR as well, as WACC alone does not say much about the company’s overall situation. Samsung Galaxy Note 7 Debacle IRR will add meaning to the finance solution that you are working on. The internal rate of return is a tool used in investment appraisal to calculate the profitability of prospective investments. IRR calculations are dependent on the same formula as Samsung Galaxy Note 7 Debacle NPV.

There are two ways to calculate the Samsung Galaxy Note 7 Debacle IRR.

By using a Samsung Galaxy Note 7 Debacle Excel Spreadsheet: There are in-built formulae for calculating IRR.

IRR= R + [NPVa / (NPVa - NPVb) x (Rb - Ra)]

In this formula:

Ra= lower discount rate chosen
Rb= higher discount rate chosen
NPVa= NPV at Ra
NPVb= NPV at Rb

Samsung Galaxy Note 7 Debacle IRR impacts your finance case solution in the following ways:

If IRR>WACC, accept the alternative
If IRR<WACC, reject the alternative

Samsung Galaxy Note 7 Debacle Excel Spreadsheet

All your Samsung Galaxy Note 7 Debacle calculations should be done in a Samsung Galaxy Note 7 Debacle xls Spreadsheet. A Samsung Galaxy Note 7 Debacle excel spreadsheet is the best way to present your finance case solution. The Samsung Galaxy Note 7 Debacle Calculations should be presented in Samsung Galaxy Note 7 Debacle excel in such a way that the analysis and results can be distinguished to the viewers. The point of Samsung Galaxy Note 7 Debacle excel is to present large amounts of data in clear and consumable ways. Presenting your data is also going to make sure that you don't have misinterpretations of the data.

To make your Samsung Galaxy Note 7 Debacle calculations sheet more meaningful, you should:

Think about the order of the Samsung Galaxy Note 7 Debacle xls worksheets in your finance case solution
Use more Samsung Galaxy Note 7 Debacle xls worksheets and tables as will divide the data that you are looking at in sections.
Choose clarity overlooks
Keep your timeline consistent
Organise the information flow
Clarify your sources

The following tips and bits should be kept in mind while preparing your finance case solution in a Samsung Galaxy Note 7 Debacle xls spreadsheet:

Avoid using fixed numbers in formulae
Avoid hiding data
Useless and meaningful colours, such as highlighting negative numbers in red
Label column and rows
Correct your alignment
Keep formulae readable
Strategically freeze header column and row

Samsung Galaxy Note 7 Debacle Ratio analysis

After you have your Samsung Galaxy Note 7 Debacle calculations in a Samsung Galaxy Note 7 Debacle xls spreadsheet, you can move on to the next step which is ratio analysis. Ratio analysis is an analysis of information in the form of figures contained in the financial statements of a company. It will help you evaluate various aspects of a company's operating and financial performance which can be done in Samsung Galaxy Note 7 Debacle Excel.

To conduct a ratio analysis that covers all financial aspects, divide the analysis as follows:

Liquidity Ratios: Liquidity ratios gauge a company's ability to pay off its short-term debt. These include the current ratio, quick ratio, and working capital ratio.
Solvency ratios: Solvency ratios match a company's debt levels with its assets, equity, and earnings. These include the debt-equity ratio, debt-assets ratio, and interest coverage ratio.
Profitability Ratios: These show how effectively a company can generate profits through its operations. Profit margin, return on assets, return on equity, return on capital employed, and gross margin ratio is examples of profitability ratios.
Efficiency ratios: Efficiency ratios analyse how efficiently a company uses its assets and liabilities to boost sales and increase profits.
Coverage Ratios: These ratios measure a company's ability to make the interest payments and other obligations associated with its debts. Examples include times interest earned ratio and debt-service coverage ratio.
Market Prospect Ratios: These include dividend yield, P/E ratio, earnings per share, and dividend payout ratio.

Samsung Galaxy Note 7 Debacle Valuation

Samsung Galaxy Note 7 Debacle Valuation is a very fundamental requirement if you want to work out your Harvard Business Case Solution. Samsung Galaxy Note 7 Debacle Valuation includes a critical analysis of the company's capital structure – the composition of debt and equity in it, and the fair value of its assets. Common approaches to Samsung Galaxy Note 7 Debacle valuation include

DDM is an appropriate method if dividends are being paid to shareholders and the dividends paid are in line with the earnings of the company.
FCFF is used when the company has a combination of debt and equity financing.
FCFE, on the other hand, shows the cash flow available to equity holders only.

These three methods explained above are very commonly used to calculate the value of the firm. Investment decisions are undertaken by the value derived.

Samsung Galaxy Note 7 Debacle calculations for projected cash flows and growth rates are taken under consideration to come up with the value of firm and value of equity. These figures are used to determine the net worth of the business. Net worth is a very important concept when solving any finance and accounting case study as it gives a deep insight into the company's potential to perform in future.

Alternative Solutions

After doing your case study analysis, you move to the next step, which is identifying alternative solutions. These will be other possibilities of Harvard Business case solutions that you can choose from. For this, you must look at the Samsung Galaxy Note 7 Debacle case analysis in different ways and find a new perspective that you haven't thought of before.

Once you have listed or mapped alternatives, be open to their possibilities. Work on those that:

need additional information
are new solutions
can be combined or eliminated

After listing possible options, evaluate them without prejudice, and check if enough resources are available for implementation and if the company workforce would accept it.

For ease of deciding the best Samsung Galaxy Note 7 Debacle case solution, you can rate them on numerous aspects, such as:

Feasibility
Suitability
Flexibility

Implementation

Once you have read the Samsung Galaxy Note 7 Debacle HBR case study and have started working your way towards Samsung Galaxy Note 7 Debacle Case Solution, you need to be clear about different financial concepts. Your Mondavi case answers should reflect your understanding of the Samsung Galaxy Note 7 Debacle Case Study.

You should be clear about the advantages, disadvantages and method of each financial analysis technique. Knowing formulas is also very essential or else you will mess up with your analysis. Therefore, you need to be mindful of the financial analysis method you are implementing to write your Samsung Galaxy Note 7 Debacle case study solution. It should closely align with the business structure and the financials as mentioned in the Samsung Galaxy Note 7 Debacle case memo.

You can also refer to Samsung Galaxy Note 7 Debacle Harvard case to have a better understanding and a clearer picture so that you implement the best strategy. There are a number of benefits if you keep a wide range of financial analysis tools at your fingertips.

Your Samsung Galaxy Note 7 Debacle HBR Case Solution would be quite accurate
You will have an option to choose from different methods, thus helping you choose the best strategy.

Recommendation and Action Plan

Once you have successfully worked out your financial analysis using the most appropriate method and come up with Samsung Galaxy Note 7 Debacle HBR Case Solution, you need to give the final finishing by adding a recommendation and an action plan to be followed. The recommendation can be based on the current financial analysis. When making a recommendation,

You need to make sure that it is not generic and it will help in increasing company value
It is in line with the case study analysis you have conducted
The Samsung Galaxy Note 7 Debacle calculations you have done support what you are recommending
It should be clear, concise and free of complexities

Also, adding an action plan for your recommendation further strengthens your Samsung Galaxy Note 7 Debacle HBR case study argument. Thus, your action plan should be consistent with the recommendation you are giving to support your Samsung Galaxy Note 7 Debacle financial analysis. It is essential to have all these three things correlated to have a better coherence in your argument presented in your case study analysis and solution which will be a part of Samsung Galaxy Note 7 Debacle Case Answer.

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Leadership & Managing People / MBA Resources

Introduction to VRIO / VRIN Analysis

EMBA Pro VRIO / VRIN Analysis Solution for Samsung Galaxy Note 7 Debacle case study

Case Authors : John Lee, Chloe Zheng, Dominic S.K. Lim

Topic : leadership & managing people, related areas : corporate governance, crisis management, manufacturing, emba pro vrio / vrin analysis approach to samsung galaxy note 7 debacle case study.

At EMBA PRO , we provide corporate level professional Marketing Mix and Marketing Strategy solutions. Samsung Galaxy Note 7 Debacle case study is a Harvard Business School (HBR) case study written by John Lee, Chloe Zheng, Dominic S.K. Lim. The Samsung Galaxy Note 7 Debacle (referred as “Samsung Galaxy” from here on) case study provides evaluation & decision scenario in field of Leadership & Managing People. It also touches upon business topics such as - Marketing Mix, Product, Price, Place, Promotion, 4P, Corporate governance, Crisis management, Manufacturing. Our immersive learning methodology from – case study discussions to simulations tools help MBA and EMBA professionals to - gain new insight, deepen their knowledge of the Leadership & Managing People field, VRIO Analysis, case solution, VRIN Solution, Resource based Strategic Management- Value, Rare, Imitation Risk, Organization Competence, and more.

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What is the VRIO framework / model? What are the components of VRIO? Why is VRIO important?

VRIO Framework was first developed by Jay B Barney to evaluate the relative importance of resources to the firm. VRIO stands for – Value of the resource, Rareness of the resource, Imitation Risk, and Organizational Competence. VRIO is a resource focused strategic analysis tool. Leaders at Samsung Galaxy can use VRIO to build sustainable competitive advantage by better understanding the role of resources in Samsung Galaxy’s overall business model.

VRIO Analysis of Samsung Galaxy Note 7 Debacle

VRIO analysis of Samsung Galaxy is a resource oriented analysis using the details provided in the Samsung Galaxy Note 7 Debacle case study. Resource-based strategic analysis is based on the assumption that strategic resources can provide Samsung Galaxy an opportunity to build a sustainable competitive advantage over its rivals in the industry. This sustainable competitive advantage can help Samsung Galaxy to enjoy above average profits in the industry and thwart competitive pressures.

***It is a broad analysis and not all factors are relevant to the company specific. For greater details connect with us.

What is a Resource in VRIO? Classification of Resources for VRIO Analysis.

Resources of an organization can be categorized into two categories - Tangible resources and Intangible Resources. Tangible resources of Samsung Galaxy include - physical entities, such as land, buildings, plant, equipment, inventory, and money. Intangible resources of Samsung Galaxy are –skill and administrative level of managers, brand names and goodwill of the company, intellectual property rights, copyrights, trademarks, and special relationship with supply chain partners.

The four components of VRIO used in Samsung Galaxy Note 7 Debacle analysis are –

Valuable – Is the resource valuable to Samsung Galaxy. According to John Lee, Chloe Zheng, Dominic S.K. Lim of the case study following are the critical resources that are valuable to the firm - financial resources, human resources, marketing expertise, and operations management.

Rare – "Samsung Galaxy" needs to ask is whether the resources that are valuable to the Samsung Galaxy are rare or costly to attain. If they are not rare than both present competitors and new entrants will easily able to get access to them and enter the competitive landscape.

Costly to Imitate – At present most industries are facing increasing threats of disruption. According to the data provided in Samsung Galaxy Note 7 Debacle – it seems that the core differentiation of the Samsung Galaxy is difficult to imitate. On a broader scale – imitation of products of Samsung Galaxy can happen in two ways – Duplication of the products of the company, and competitors coming up with substitute products that disrupt the present industry structure.

Organizational Competence & Capabilities to Make Most of the Resources – It measures how much the company has able to harness the valuable, rare and difficult to imitate resource in the market place. The exploitation level analysis for Samsung Galaxy products can be done from two perspectives. Is the firm able to fully exploit the potential of the resource, or it still has lots of upside. Often the exploitation level is highly dependent upon execution team and execution strategy of the firm. So exploitation level is a good barometer to assess the quality of human resources in the organization. Capabilities tend to arise or expand over time as a firm takes actions that build on its strategic resources.

VRIO and VRIN of Samsung Galaxy Note 7 Debacle

Another extension of VRIO analysis is VRIN where “N” stands non substitutable. A resource is non substitutable if the competitors can’t find alternative ways to gain the advantages that a resource provides. In the VRIO analysis we can include the disruption risk under imitation risk.

Define the four characteristics of resources that lead to sustained competitive advantage as articulated by the resource-based theory of the firm.

The characteristics of resources that can lead to sustained competitive advantage as per the resource based theory of the firm are – Value of the Resources Rareness of the Resources Imitation and Substitution Risks associated with the resources. Organizational Competence to exploit the maximum out of those resources.

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5C Marketing Analysis of Samsung Galaxy Note 7 Debacle

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M. E. Porter , Competitive Strategy(New York: Free Press, 1980) John Lee, Chloe Zheng, Dominic S.K. Lim (2018) , "Samsung Galaxy Note 7 Debacle Harvard Business Review Case Study. Published by HBR Publications. O. E. Williamson , Markets and Hierarchies(New York: Free Press, 1975) Barney, J. B. (1995) "Looking Inside for Competitive Advantage". Academy of Management Executive, Vol. 9, Issue 4, pp. 49-61

Kotler & Armstrong (2017) "Principles of Marketing Management Management", Published by Pearson Publications.

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Samsung Galaxy Note 7 Debacle Case PESTEL Analysis

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Samsung Galaxy Note 7 Debacle Case Study Solution

The analysis used to determine the position of company in the market is done by using PESTLE analysis, given in Exhibit A. Samsung Galaxy Note 7 Debacle works under the rules and regulations directed by government and food authority. The company is more concentrated on its product or services to make sure about the product quality and security. This analysis will help in comprehending environment of external market in the worldwide food and drink markets. (Parera, 2017).

The political effect on the company is significantly affected by the federal government laws and policies. In efforts to make good food, Samsung Galaxy Note 7 Debacle is changing the standards of food and drink production.

Initiation of the business where the capital earnings of each individual matters for the increased net sale as this varies country-to-country. The economy of the Samsung Galaxy Note 7 Debacle Company in U.S. is growing year by year with variable products launch particularly concentrating on the nutritional food for infants.

The social environment keeps on changing with respect to time like the attitude of the customer in addition to their lifestyles. Any services or product of any business can not achieve success till the business is not concerned about the living system of the customer. Samsung Galaxy Note 7 Debacle is taking procedures to fulfill its objectives as the world is in search of healthy and tasty food.

Technological.

In the advancement of business, tactical steps are somewhat mandatory. Samsung Galaxy Note 7 Debacle is among the leading famous international firm and by time it buys various departments to take its items to new level. Samsung Galaxy Note 7 Debacle is investing more on its R&D to make its items much healthier and nutritious offering customers with health advantages.

There is no such impact of legal factors of Samsung Galaxy Note 7 Debacle as it is more worried over its laws and policies.

Environmental.

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Samsung fait le point sur la débâcle du Galaxy Note 7

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Samsung Galaxy Note 7 Debacle Case Study Solution
Samsung Galaxy Note 7 Debacle Case Study Solution The analysis used to determine the position of company in the market is done by using PESTLE analysis, given in Exhibit A. Samsung Galaxy Note 7 Debacle works under the rules and regulations directed by government and food authority.