Samsung's Galaxy Note 7 Explosion: A Business Case Study Analysis

This case study examines the Samsung Galaxy Note 7 battery explosion incidents, which led to a global product recall. The assignment details the events, including the discovery of faulty batteries that caused the devices to explode or catch fire, and Samsung's response to the crisis. It highlights the company's efforts to identify the cause of the issue, offer replacements, and apologize to customers. The case study also references the impact on Samsung's reputation and the financial implications of the crisis, including the recall from ten countries. The analysis also includes the perspectives of customers, the media coverage, and the long-term impact of the incident on Samsung's brand and market position. The provided references offers insights into the crisis management and business challenges faced by Samsung.

Samsung explosions incidents
Samsung electronics evoked all of its Galaxy Note seven smartphones when they found that
batteries of a number of the flagship devices exploded or caught fire.
Samsung’s Note sevens is being dragged from shelves in ten countries, comprising South Korea
and the United States, just two weeks after the produce’s launch (Lopez, 2017). The president of
the Samsung’s mobile industry says that clients who have already purchased Note seven will be
able to exchange them for original smartphones in around two weeks. Also, the president of the
Samsung Mobile industry apologized for causing problems and concern to the clients (Hollister,
2016).
Samsung confirmed to have had thirty-five cases of Note Seven explosion. There have been no
cases or news concerning injuries linked to the problem (Solon, 2016). The firm said it has not
established a formula to tell precisely which mobiles might endanger clients out of the two point
five million Note sevens that are already sold worldwide. It projected that around twenty four out
of one million units sold might have a faulty battery.
After criticizes raised online, Samsung realized that the battery cell created by one of its two
battery dealers triggered the phone to explode. Koh did not mention the name of the dealer
(Reuters, 2017).
Client’s report of burned mobiles stimulated Samsung to perform an additional quality
controlling tests and delayed consignment of the Note sevens.
South Korean high school teacher said she had hurried to purchase the new phone, pre-ordering
and then activating on August nineteen, its authorized launch date (Gilbert, 2016).
The high school teacher said that she was injured when she dashed out of bed after her phone
exploded. The teacher says that she is having a second thought about purchasing a new phone
specially after losing her data stored in the destroyed phone.

Reference
Gilbert, D 2016 ‘the long –term impact of exploding Galaxy Note 7,’ international business
times available at https://www.ibtimes.co.uk/samsungs-16bn-problem-long-term-impact-
exploding-galaxy-note-7-1581693, vol. 2, no. 2 p 1
Hollister, S 2016 ‘here is why Samsung Note 7are catching fire’ C/net, available at
https://www.cnet.com/news/why-is-samsung-galaxy-note-7-exploding-overheating, vol.
1, no. 3, p 1
Lopez, M 2017 ‘Samsung explains Note 7 Battery Explosions, and Turns Crisis into
Opportunity,’ Forbes, available at
https://www.forbes.com/sites/maribellopez/2017/01/22/samsung-reveals-cause-of-note-
7-issue-turns-crisis-into-opportunity/#4d2f0a3024f1, vol. 4, no. 5, p 3
Reuters, 2017 ‘Samsung says battery defect caused Note 7 fires,’ ZEEBUSINESS available at
https://www.zeebiz.com/technology/news-samsung-says-battery-defects-caused-note-7-
fires-11196, vol. 5, no.1, p 3
Solon, O 2016 ‘Sales of Galaxy Note 7 halted as users warned to ‘turn off’,’ The Guardian,
available at https://www.theguardian.com/technology/2016/oct/11/samsung-suspends-
sales-galaxy-note-7-phone-warns-turn-it-off, vol. 1, no.3,p 5