Q. Read the case given carefully, then develop a draft, detailing what could be the best possible strategy to be implemented in the scenario. Do keep in mind, it must resolve the issues which the organization is currently facing.

Samsung Galaxy Note 7: Crisis Management and Beyond

Samsung, the worlds leading Smartphone maker, launched its most awaited Galaxy Note 7 smartphones, in 10 major markets, including the US and South Korea in August 2016. Within a week of its launch, there were incidents of Note 7s catching fire. Koh, the president of Samsungs mobile business announced a recall and replacement of Note 7. But the replaced Notes also caught fire. The company had to announce a second recall and abandon the production of Note 7.

With holiday season fast approaching Samsung had to come up with a strategy to retain its loyal customers. Also its competitor Apple had just launched iPhone 7 and Google launched its first smartphone Google Pixel. The company had to also work on rebuilding its lost brand value and instill confidence in the customers, which was essential for Samsung to retain its position in the smartphone market.

Issues:

• Apply how to deal with crisis and manage the emergency situation effectively.
• Understand the ways a company can communicate and effectively retain its customers loyalty.
• Understand the importance of quality control checks.
• Evaluate the short term and long term impact on the brands market share.
• Evaluate the impact on the smartphone business where customers shift to a new ecosystem itself.

Solution: