Quality Issue Regarding Samsung Battery

Running head: QUALITY ISSUE REGARDING SAMSUNG BATTERY
QUALITY ISSUE REGARDING SAMSUNG BATTERY
Name of the Student
Name of the University
Author Note

1QUALITY ISSUE REGARDING SAMSUNG BATTERY
1. Introduction
Samsung is one of the biggest South Korean multinational conglomerates, which
comprises numerous affiliated businesses and diversified their range in all the sections in
business. The group diversification in last three decades was a phenomenon from Samsung sides
and that also deliver a strong establishment of their company (Samsung.com, 2018). The
problem has come up in recent past about their Galaxy Note 7 and the problem is hazardous for
all kind of users. The battery exploitation issue of Samsung is not a light issue to be discussed,
rather the situation is very critical and this is the concerning topic of this report that will be
addressed in following sections.
1.1 History and Overview of the company
Samsung has started as a small trading company in 1938 named as Samsung Sanghoe. At
the initial stage, the company dealt with groceries, noodles and dried-fish. In 1947, Samsung
trading corporation has formed and they are going to generate their business in all directions. The
company grabbed 30 equity shares and the separate their device channels in the electronically
related division, telecommunication sector and even semiconductor and corning. The first
product of Samsung, in that case, is a black and white television set. The rise of Samsung has
come and they made their ground as an international business in 1990 (Samsung.com, 2018).
The world largest producer of memory chips is Samsung and they made their corporate entry by
this process. Samsung Galaxy note is produced mostly for the niche market and retains the
flagship of brand value. The company, itself has the competitive pricing range and they have
produced this phone for attaining niche people and to quest their need. The company targets all
genres of class in case of customer targeting and they signify all ranges of phones for their

2QUALITY ISSUE REGARDING SAMSUNG BATTERY
customers as they have the variety of price range options for them and that will segment them in
every section of the target market.
2. Problem Statement
The major problem of the Samsung Galaxy Note 7 is the issue regarding the battery and
that has hampered the market position as well as trust over the company. People are relying on
the safety and security of the company and they want the phones to build in an ethical manner
and safety of the customer will be the most important part of the company (Samsung.com, 2018).
The situation of over-heating, catching fire and even in some case exploitation is the reason
where customers are getting feared to use the company. The reason, they are not using Samsung
is the fear they are into it and in most of the cases the situations are increasing and the company
is being liable for that.
2.2 Reason behind the problem
The technology of Smartphone is always innovative and with the new genre of
technologies, the upgradations of phones are also important. People find more innovation in their
Smartphone and customers eager to have this Smartphone. The non-replaceable Lithium-ion
battery is the cause of this exploitation or fire cases and Samsung has found the reason behind
this issue is the manufacturing parameter of overheating or functional system of battery that
causes this kind of situation (Samsung.com, 2018). As much processes are incorporated with
Samsung the product quality and people need has addressed in a right way, but the situation has
also come in that section, where the phone capability exceed by the excessive use of this.
The problem structure faced by the company may change the dimension of the company
as well. More security and safety procedure needs to be taken by the company before launching a

3QUALITY ISSUE REGARDING SAMSUNG BATTERY
brand new phone in the market. The 5th generation model has come in 2015 and that had the most
premium look on that time (Samsung.com, 2018). The phones are also enriched with lots of new
features as well. But imposing those extra features makes some problems as well for the phone
under the platform.
The problem is affecting the customer, company and also impact on the wider business
market of Samsung. Though these cases do not happen in other sectors in electronic but still
people have a fear of the products of Samsung. The situation is literally worst in perspective of
the company and lots of products are being suffered by the situation. The situation also
highlights the crucial alignment of all the products and their changes according to the views of
customers.
3. Literature review
3.1 Price and product feature
The pricing strategy of Samsung is always unique as they have segmented their products
for each section of people. Every customer has set their choice in case of some factors, like
motivation, reflection and the in some cases the requirement of people and their desire to buy
something special is the reason behind their choice of phones. Samsung has all these kinds of
phones those entries in the market for different sectors of people. People lifestyle is also related
to the choice of phones and that is the reason varieties of the phones and different technical
analysis are persisted in Samsung. As commented by Shamsi, Ali & Kazmi (2017), the price will
be higher as the quality of the phone will rise and that is the reason price discrimination is one of
the valuable aspects of the company. In Smartphone category, Samsung tried their variation in all
the aspects and deliver price-adjusting phones that people from all sections can afford.

4QUALITY ISSUE REGARDING SAMSUNG BATTERY
In case of product feature, the first influential section of providing the Android feature to
all genres of people was initiated by Samsung. Some of the features are so innovative that
Samsung is the brand who had introduced this kind of things. Features like edge panel, water
resistance, incredible low light camera, the expandable form of storage all these forms are
introduced by Samsung. In case of comparing their product with Apple, Samsung highlights their
advancement and that is the reason people attracts through the phone. On the other hand Hao et
al., (2017), the texture, dimension, vibrant and the software covering of the phone is the main
aspect of attraction. The application of physical appearances and marinating the rice rate also
highlight the product feature as well.
3.2 Social influence
The influence that comes from the social aspects is the most influencing for the
organization. People notice that market is full of the progression of the advancement of
Smartphone and the use of technology is the main concern of this time. Samsung is the company
that introduces social change in Smartphone market and provides the lowest range of
Smartphone to the customers (Shamsi, Ali & Kazmi, 2017). Social understanding and people
desire is the main reason that Smartphones are spreading the market rapidly.
3.3 Brand value
In case of brand value, the company is one of the trustworthy companies in the world, so
a brand value is always there with every phone of Samsung. However, the possibility of
influencing satisfying customers is the main aspect of the company and they are doing the
process effectively (Ickin et al., 2012). The aim of the company is to generate more people and
maintain a relationship with customers so that repeat sale will increase, in that aspect the

5QUALITY ISSUE REGARDING SAMSUNG BATTERY
problem arises when the battery is not functioning well. The situation is rather critical for the
company when the people have the rumor about it and the brand value decreases due to the
safety feature for the customers.
3.4 Dependability and Compatibility
The matter of dependability is present in the everyday life. People are not thinking their
life without a cell phone and now the form of cell phone device is very effective and smart as
well. That is the reason, buyers will think what kind of Smartphone they are going to use and
what will be suitable for them (Kim et al., 2015). There are different ranges in Samsung and they
have such facility that will attract people at a glance. But the situation faced by the Galaxy Note
7 pull them in loss and company has a major loss of the $17 billion (Samsung.com, 2018).
3.5 Battery problem and first exploitation
Samsung announced Galaxy Note 7 is the best Smartphone on this level as it was less in
price rather than other phones. The first explosion case was reported in South Korea and on the
same day, Samsung Note 7 exploded in China also. The problem declared by the officials and
executive is stack in a safe side for Samsung, as they declared that explosion happened due to the
change in charging the device (Shamsi, Ali & Kazmi, 2017). The explosion happened as
customers are not using original Samsung charger to charge the device. Action has started and
battery problem is accepted on 2nd September 2016 and exchange program started from the
company's end. After that, another explosion case happens in Australia on 5th September.
Samsung planned to stop the sales of the phone in 9th September 2016 and the apologies for this
entire incident (Samsung.com, 2018). Joke, disappointment, anger all are coming from the
customers and Samsung fell in a bigger trouble. There are lots of loyal customers who turn their