Management Communication - Case study of Samsung
Added on 2021-06-17
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Management CommunicationSamsung S7 Fiasco
Business communication1IntroductionCommunication forms the backbone of any business organization. Effective communication strategies adopted by the business set the right positioning for the brand and build a connection between the brand and its stakeholders (Guffey & Loewy, 2012). Businesses are seen communicating with their customers in the form of media, PR, customer service, customer relationship management strategies and recently, Social media (Meredith, 2012). This report throws light upon a major issue faced by electronics giant Samsung over the S7 fiasco. The organization underwent troubled waters and immense loss during the case. The brand confirmed an estimated loss of over $ 3 billion (Tuttle, 2016). However, it was only the effective communication strategies adopted by the brand that saved the brand’s positioning in the market.Samsung s7 fiascoSamsung S7 was one of the most anticipated mobile phones since the time it was announced in the market. The mobile phone model was launched on 2 August, 2016. The device had already created a buzz in the market and hence many people had pre-booked the phone. Once the device was launched, the demand continued to grow for some time. However, by the end of August things started going downhill. The first Samsung galaxy S7 explosion was reported on August 24, 2016 in China. The device exploded when it was charging and by the end of August, over 30 smartphone explosions had been reported (Hartley, 2017).On 2 September, 2016, after analyzing the issue to an extent, Samsung released a public statement announcing that the brand will replace the current S7 with a new one (Samsung, 2016).This worldwide recall of a particular smartphone model was the largest in consumer electronics history (Dempsey, 2016). Samsung urged the users to return their smartphones at the earliest. The brand even announced an over the air update that would limit the charging of the phone to 60% (First Post, 2016).The brand’s shares started plummeting and it was losing trust (Shamsey et. al., 2017). Customersfrom across the globe resorted to social media to complaint about the brand.
Business communication2Source 1 TwitterThe brand image for Samsung was at a toss and it was imperative that the brand responds to the issue in a planned and highly effective manner. Crisis communication channelsIt has often been seen that various organizations and even leading businesses face severe wrath over a bad quality product. However, it is the response of the business to its stakeholders as well as its attempt to communicate with them that creates a protective shield around the brand. The very first rule of communicating under a crisis is to apologize and control the panic that has occurred. Samsung resorted to all communication channels including their own website, official social media pages, media releases and new reports to apologize for the mistake that occurred at their end. The brand asked all customers to return their phone, promised to deeply analyze the issue and fix it at its very core.
Business communication3Source 2 PinterestChannel of communication at the time of a crisis communication plays a significant role in addressing the issue (Schultz, 2011). Samsung understood this and resorted to all possible channels to address the issues. A brand can initiate a communication with stakeholders either through public platforms and reach out to a wide audience or they can communicate in a one on one manner and demonstrate excellence of service. At this time, Samsung did both. The social media channels and media reports aim to engage audience at large and calm the situation (Veil et. al., 2012). On the other hand, Samsung further tightened its customer service centers, increased the number of temporary recruits and ensured that anyone who gets in touch with the brand gets his or her issue resolved.
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