Samsung: Too Hot to Handle
In the mad rush to the top in smartphone sales, South Korea’s Samsung has led the pack in recent years, overtaking even the giant, Apple. Its Galaxy Note 7 was meant to be its 2016 star product, securing market dominance. The new Samsung smartphone boasted more functionalities and innovations than any other device on the market, and the critics loved it.
The Failure :
The company could not have foreseen how this would blow up in its face. Just a few months following the launch, a few Galaxy Note 7 phones caught on fire. By the end of summer, some one hundred such instances were reported. Samsung, believing it to be a faulty battery issue, offered to replace defective phones. But when some of these “replacements” also began to overheat, it decided to recall all the phones and stop production.
Obviously, Samsung was faced with consumer redress and both its reputation and its stock took a hit on the markets. This whole affair went so far as to affect the South Korean economy. At the height of the crisis, several airlines even prohibited the device onboard.
The Moral :
Pressure is heavy when you’re the leader in such a competitive market. In its push to become the most innovative, Samsung cut corners that allowed defects to slip by. The speed at which information travels today greatly increases its impact on a brand’s reputation. Samsung must now take extra care and work extremely hard to win back consumer trust and rise from its ashes.
Image Source : N4BB.com