Samsung

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Introduction

• Samsung is a South Korean multinational conglomerate

known for its diverse range of products and services.
• Founded in 1938 by Lee Byung-chul, the company has
grown to become a global leader in electronics.
• Renowned for innovation, Samsung has played a pivotal
role in shaping the technology industry.
• It is recognized for its commitment to quality and
cutting-edge advancements.
History of
Samsung
• It was small trading company the company dealt with local
grocery items and dried-fish exportation.
• In the late 1960s, the company ventured into the electronics
industry, establishing Samsung Electronics in 1969.
• In the mid-1980s, it began producing personal computers
and expanded into telecommunications.
• The Samsung Galaxy series of smartphones, introduced in
2010, became highly successful.
• Samsung faced challenges, including legal disputes with
competitors and the recall of the Galaxy Note 7 due to
battery issues.
Problem that samsung faced
• One of the significant failures that Samsung faced in 2016 was
related to its flagship smartphone, the Samsung Galaxy Note 7.
• The device experienced widespread issues with its battery,
leading to incidents of overheating, and in some cases, catching
fire.
• The company initially issued a recall in September 2016,
asking consumers to return or exchange their Galaxy Note 7
devices.
• Even the replacement units were found to have similar battery
issues, exacerbating the problem.
• Samsung decided to permanently cease production and sales of
the Galaxy Note 7 in October 2016.
consequences of Samsung note
7 problem
• Financial Impact: The Galaxy Note 7 recall and
discontinuation had a substantial financial impact on
Samsung. The cost of the recall, refunds, and lost sales
amounted to billions of dollars.
• Reputation Damage: The incident damaged Samsung's
reputation, particularly in terms of product safety and
quality control. The Galaxy Note 7 was initially positioned
as a flagship device, but the safety issues led to a loss of
consumer trust.
• Market Share Loss: The Galaxy Note 7 issues resulted in a
decline in market share for Samsung in the smartphone
industry. Competitors took advantage of the situation, and
some consumers shifted to alternative brands.
 Solution
• The company took several steps to address the situation and
prevent similar incidents in the future:
• Global Recall: Samsung initiated a global recall of all
Galaxy Note 7 devices, urging users to return their phones
for a replacement or refund.
• Investigation and Root Cause Analysis: Samsung
conducted thorough investigations into the issues causing
the battery problems.
• Production Halt and Discontinuation: After attempting to
replace the faulty devices with what was believed to be safe
ones, incidents of overheating persisted.
• Customer Refunds and Exchanges: Samsung offered full
refunds or exchanges for Galaxy Note 7 owners, allowing
them to choose an alternative Samsung device or receive a
complete reimbursement.
Solution
• Enhanced Quality Control Measures: In response to the Galaxy Note 7
crisis, Samsung implemented enhanced quality control measures and safety
protocols in its manufacturing and testing processes.

• Improved Battery Safety Standards: Samsung worked to establish and

adhere to higher safety standards for battery components in its smartphones.

• Communication and Transparency: Throughout the crisis, Samsung

communicated transparently with the public, acknowledging the severity of
the issue and providing regular updates on the progress of the investigation
and recall efforts.

• Rebuilding Consumer Trust: Samsung undertook extensive efforts to

rebuild consumer trust. This involved not only addressing the immediate
issue but also demonstrating a long-term commitment to product safety and
quality.
 Conclusion

• The Samsung Galaxy Note 7 problem prompted a swift and

comprehensive response from the company.
• when issues persisted, the company made the difficult decision to
discontinue the model.
• Samsung prioritized customer safety, offering refunds and
exchanges, implementing enhanced quality control measures, and
establishing higher safety standards for batteries.
• The incident had significant financial and reputational
repercussions, but Samsung's transparent communication,
commitment to addressing the problem.
• subsequent improvements in product safety demonstrated a
dedication to learning from the crisis and rebuilding consumer
trust.
THANK YOU