samsung galaxy note 7 case study

From a 'cultural meme' to a comeback kid: How Samsung overcame its Galaxy Note 7 fiasco

• The company managed to pull the feat by holding itself accountable, getting to the root of the cause and then communicating that effectively to its employees and consumers.
• It also used the opportunity to find a bigger brand purpose for itself and creating an internal culture of change that encourages and prides itself on taking risks.

In 2016, Samsung was blowing up — quite literally.

The phone maker was battling its biggest ever brand crisis, after defective Galaxy Note 7 smartphones began exploding around the world . A battery malfunction was threatening to permanently damage both its business and its reputation: its mobile sales were down 15% by October 2016 .

"We became a cultural meme, a daily announcement on every flight," said Pio Schunker, svp of integrated marketing communications at Samsung Mobile Communication, speaking at the Association of National Advertisers' Masters of Marketing Conference on Thursday. "There was wave after wave of negative commentary — not just from the press, but from consumers as well."

But a year later, the South Korean company seems to be on the path to a full recovery. Just last week, it went up from the seventh to the sixth position in the marketing consulting group Interbrand's 2017  Best Global Brands list , and saw a 9% increase in brand valuation despite the crisis. Samsungs's profits are up in 2017 and its new Galaxy 8 has been selling well, according to Marketwatch.

Here's how Samsung managed to pull its comeback:

By embracing accountability

When disaster struck, Samsung knew that it had to be proactive and take responsibility, according to Schunker.

"We knew we couldn’t afford the luxury of a fetal position and just lie there, so the first thing that we did to make things right was to take accountability," he said. "For Samsung, it wasn’t just the right thing to do, it was the only thing to do."

The company promptly held a press conference, in which it took full responsibility for the crisis. It was also forthcoming in its admission that while it didn’t know what was causing the battery   malfunction, it would not rest until the actual cause was discovered. 

The company then moved into decisive and meaningful action, getting 700 researchers and engineers, 200,000 phones and over 30,000 batteries tested in every extreme condition possible. In a company first, Samsung also opened up to third party auditors.

When Samsung eventually figured out what exactly had gone wrong, it communicated that out to the public. In January, it announced a quality assurance program and other safety features, including an 8-point battery safety check, rolling them out the very next day.

By building 'brand love'

Once the issue at hand was addressed, Samsung turned its attention towards recovering people's love and trust. It focused on finding a bigger purpose that both its employees and consumers could rally around, made its brand more inclusive globally and tried to create an internal culture of change.

" This time the stakes were much higher, because we not only had to recover from all the damage that had been done, but do it during one of the most competitive smartphone launch seasons we’d ever seen in advance of the S8 launch," he said. "We needed to reclaim our leadership."

The brand sought to break away from its "immensely fragmented brand identity which l acked warmth and humanity," and instead  inspire purpose beyond just its bottomline. It tapped into its inherent DNA of relentless innovation, crystallizing that into a bigger brand purpose encapsulated in the tagline " Do What You Can’t.”

Bringing all its regions and markets together around a common vision ended up propelling the brand even further. 

"The brand focus was incredibly empowering, helping in creating great work and scaling up the brand faster than HQ initiative could have done," he said. 

By relying on its partners

Social media 'war rooms' — where brand and agency teams coalesced to take on tentpole events on social media in real time — may be a thing of the past. But desperate times call for desperate measures, as was Samsung's case when its phone scandal broke out last year.

According to Schunker, Samsung and its agencies set up a war room in the immediate aftermath of the crisis, monitoring media reports and consumer sentiment online day in and day out to make sure everyone was on the same page and up to speed on the latest.

"They were instrumental, we could not have done this without our agency partners," he said. 

Watch: The Samsung Galaxy Note 9 is a $1,000 phone that's actually worth it

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Samsung’s Exploding Galaxy Note 7: A Case Study In How Not To Release A Smartphone

By Xavier Harding

Posted on Oct 11, 2016 9:22 PM EDT

5 minute read

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The Galaxy Note 7 was meant to serve as Samsung’s best 5.7-inch, stylus-wielding smartphone. Introduced in August to great fanfare, the new Note device not only offered Samsung users an updated smartphone option, it also served as a way to tide over customers until the presumed Galaxy S8 in March 2017. At least that was the plan, until Samsung’s Galaxy Note 7 began to catch fire while plugged in to charge. Now Samsung has chosen to cease production on the Note 7 line until further notice.

Lithium-ion batteries, like the ones commonly found in smartphones, laptops and more, have been known to catch fire in the past. Laptops from Sony went through a similar flaming bout in 2014, as did various hoverboards more recently. As to why these batteries continue to explode, you’ll want to check out our explainer on the matter.

Samsung’s halt on production of the Note 7 could mean bad news for the company, especially at a time when Apple just released its new iPhone and Google finally announced its official phone. Indeed, the Note 7 has been a disaster from almost the very beginning…

Warm Reviews

The Samsung Galaxy Note 7 was well received amongst reviewers of the device. Wired , The Verge , Time , and more sang the device’s praises. It even initially earned a Mashable Choice Award , which the publication later retracted . Because then…

Initial Reports Of Combustion

The first set of Note 7 battery explosions were reported in late August, less than a month after the device came out. On August 24 , a Samsung Galaxy Note 7 device exploded while connected to its charging cable. Similar reports began to emerge following the first.

Shipment Delays And Official Worldwide Recall

Samsung then chose to delay shipments of the Note 7 “for quality control testing,” according to Reuters. (It was also at this point that the company asked Popular Science to send our review unit back.)

Samsung followed up by issuing an official worldwide recall of the Galaxy Note 7 in early September. While this spelled bad news for Samsung, it was only the beginning.

The Good Batch

After the recall, Samsung instituted an exchange program . Users of the first round of Note 7 phones could trade it in for an updated Note 7 or one of Samsung’s Galaxy S7 or S7 Edge phones. Those getting another Note 7 could tell which set the phone belonged to by looking for a black square on the bottom of the box near the product’s info.

One would assume that Samsung’s second set of Galaxy Note 7 devices would be better equipped to avoid catching on fire. But we all know what happens when you assume.

Southwest Airlines Mishap

Southwest Airlines Flight 994 was evacuated before take off as a response to a replacement Note 7 that went up in smoke, leading the FAA to warn against using the device on planes … but not before another replacement Note 7 would catch fire in a Kentucky home .

The Note 7 Is No More

Which leads us to today, where Samsung has ceased production of the Note 7. Launched on August 19 and killed off on October 11, the phone lasted just two months on the market.

Having a phone explode because of charging troubles is one thing. But Samsung offering an explosive replacement leads to even more trouble for the company.

The Lasting Effects On Samsung

Of all the Android hardware makers, Samsung has enjoyed the top spot for quite a while. The devices sell well and many see the smartphone race not as Apple versus Google, but Apple versus Samsung. But repeated offenses when it comes to phones catching fire could change that. While Samsung is haphazardly spraying the fire extinguisher, Apple’s new phone is looking better than ever and Google finally released its official Android phone . Even without a headphone jack, the iPhone 7 will sell well, like the iPhones before it. And depending on how Google markets its Pixel phone, the search company could swipe some market share from Samsung.

And that’s not all of the company’s troubles. Samsung and Apple will meet in the Supreme Court starting today in a continuing battle over allegedly infringed design patents. Apple initially sued Samsung in 2012 , claiming that many of the icons and slide-to-unlock behavior belonged to Cupertino. Their first time in court, Samsung lost over $1 billion , although they later won an appeal for $120 million , which staved off some of the cost.

The odds are against Samsung, but it will be interesting to see how the South Korean hardware maker can come back from this (if at all). Without the Note 7, Samsung won’t have an up-to-date phone to offer its users until 2017, when the Galaxy S8 eventually arrives. Offering an amazing new device could sway users back, but Samsung will have to go out of its way to prove that the device won’t catch on fire. Or make the device fireproof, which would be impressive in its own right.

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A Brief History of Samsung’s Troubled Galaxy Note 7 Smartphone

S amsung Electronics announced Tuesday that it’s stopping production of its Galaxy Note 7 smartphones, less than 24 hours after halting global sales of the device.

“(We) have decided to halt production and sales of the Galaxy Note 7 in order to consider our consumers’ safety first and foremost,” the South Korean firm wrote in a filing to the Seoul stock exchange, Reuters reports. (The Note 7 is essentially the larger version of the Galaxy S7, which hasn’t been affected by the problems plaguing the Note 7.)

But why is Samsung ending production of its popular smartphone less than two months after it launched? Here’s a brief recap:

The Note 7 launches on Aug. 19

The latest of Samsung’s large-screened, stylus-toting Android smartphones launches on August 19. TIME describes it as “a modest but welcome improvement over its predecessor, offering a more ergonomic design, an enhanced stylus, the same camera as its Galaxy S7 cousin, and some software tweaks” and awards it 4.5 out of 5 stars. (We have since rescinded our recommendation in light of the recall.)

It costs around $30 per month, or more than $800 without a payment plan, depending on the wireless carrier.

Reports begin circulating about devices catching fire

Tales of Note 7 devices catching fire begin to spread. Samsung receives 92 reports of batteries overheating in Galaxy Note 7 phones in the U.S.; it says there were 26 reports of burns and 55 reports of property damage. A man in Florida says his vehicle caught fire when the Galaxy Note 7 smartphone charging inside his SUV burst into flames.

The world’s three largest carriers by passenger traffic, American Airlines , Delta Air Lines and United Airlines, say that employees will tell passengers at the gate and on board aircraft to keep the Note 7 switched off until they deplane.

Phones recalled and replacements shipped

In early Sept., Samsung stops selling the Note 7. The U.S. Consumer Product Safety Commission (CPSC) warns users to power down their devices and stop using them. It also issues a voluntary recall of devices sold before Sept. 15.

In total, Samsung recalls 2.5 million of the new Notes across 10 worldwide markets, including one million in the U.S. More than 500,000 replacement units of the device are shipped to carrier and retail stores in the U.S.

A software update is also launched for the Note 7 to help owners distinguish whether or not their smartphone is included in the recall. The software displays a green battery icon in the phone’s status bar to indicate whether or not the phone has been affected.

The Journal reports that about 60% of the affected Notes in the U.S. and Korea have been replaced, with about 90% of customers choosing to replace the faulty phone with a new Galaxy Note 7 rather than get a refund or trade it in for a different type of phone.

Samsung’s market value drops

Samsung’s market value begins to plummet as shares fall to their lowest level in nearly two months on Sept. 12. Investors wipe 15.9 trillion won ($14.3 billion) off the South Korean firm’s market capitalization as a series of warnings from regulators and airlines around the world raised fears for the future of the device.

“Some said initially the Galaxy Note 7 could be the best smartphone ever, but now it’s possible the phone will go down as the worst ever,” IBK Securities analyst Lee Seung-woo says, predicting weak sales in the fourth quarter.

Analysts say the recall could have a lasting impact on the $211 billion company’s brand image, which could derail a recovery in its smartphone market share against rivals like Apple Inc. Some estimate the firm might lose $5 billion won worth of revenue after accounting for recall costs.

New reports suggest replacement phones are also catching fire

On Oct. 9, Samsung stops exchanging recalled Note 7 devices due to reports of replacement phones catching fire , just as the original phones did.

The week before, a Southwest Airlines flight is evacuated because of a phone that is smoking and making “popping” noises after it is turned off. Meanwhile, the Journal cites two users in California who each received a replacement Galaxy Note 7 only to discover that they became very hot.

In a statement, Samsung tells the Journal that “temperature fluctuations” could occur and weren’t a safety risk, although it did say it was resolving individual cases with customers who had issues with their replacement devices.

Mobile providers T-Mobile , AT&T , and Verizon halt sales and exchanges, Business Insider reports. “We’re no longer exchanging new Note 7s at this time, pending further investigation of these reported incidents,” A&T says in a statement. Instead, customers are allowed to exchange the phones for a different model.

Samsung announces it has stopped production of the Galaxy Note 7

In a regulatory filing Tuesday, Samsung announces that it has made a final decision to stop production “in order to consider . . . consumers’ safety first and foremost”. It could be one of the costliest product safety failures in the history of technology.

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Why Samsung’s Note 7 Crisis Won’t Hurt Its Brand Long Term

• Utpal M. Dholakia

We’ve seen this movie before.

Things look rather bleak for Samsung at the moment. Within weeks of launching its flagship smartphone, the Galaxy Note 7, the company had to recall all of the more than 3 million devices it had sold, after reports of overheating and exploding batteries. Soon after, it halted production and scrapped the product entirely. All told, current estimates indicate the recall’s cost will exceed $6 billion (with one estimate even higher ). But the greater concern is about the long-term hit on Samsung’s brand. After all, it is one of the most valuable global brands. Branding consultancy Interbrand estimated Samsung’s 2016 brand value at $51.8 billion .

• Utpal M. Dholakia is the George R. Brown Professor of Marketing at Rice University’s Jesse H. Jones Graduate School of Business and author of  How to Price Effectively: A Guide for Managers and Entrepreneurs .  

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Remarkable Recovery: Samsung Crisis Management Case Study

Have you ever wondered how a global tech giant like Samsung managed to navigate a major crisis and bounce back stronger? 

In the world of corporate governance, effective crisis management can be the difference between irreparable damage to a company’s reputation and a successful recovery. 

In this blog post, we delve into a Samsung crisis management case study to learn about exploding batteries to the intricate strategies employed to restore trust.

Samsung’s journey offers valuable insights into the intricacies of crisis management in the digital age. 

Join us as we explore the key lessons learned and best practices from this high-stakes situation, shedding light on the remarkable recovery efforts that propelled Samsung forward.

Let’s learn about sailing through tough times through Samsung crisis management case study

Background of Samsung History and growth of Samsung as a global conglomerate 

Samsung, founded in 1938 by Lee Byung-chul, started as a small trading company in South Korea. Over the years, it steadily expanded into various industries, such as textiles, insurance, and retail.

In the 1960s, Samsung ventured into electronics, marking the beginning of its transformation into a global conglomerate.

With a focus on technological innovation and a commitment to quality, Samsung rapidly gained recognition for its consumer electronics products, including televisions and appliances.

Throughout the 1980s and 1990s, Samsung significantly diversified its business portfolio, entering the semiconductor, telecommunications, and shipbuilding industries.

This diversification strategy helped Samsung become a key player in multiple sectors, solidifying its position as a global leader. Notably, Samsung’s semiconductor division became one of the largest chip manufacturers in the world, supplying components to various electronic devices worldwide.

Samsung’s ascent continued in the 2000s, driven by its successful expansion into the mobile phone market. The introduction of the Galaxy series, powered by the Android operating system, catapulted Samsung to the forefront of the smartphone industry.

The company’s innovative designs, cutting-edge features, and aggressive marketing campaigns contributed to its rise as a major competitor to Apple’s iPhone.

With its global reach, Samsung has consistently ranked among the world’s largest technology companies, epitomizing South Korea’s economic prowess and technological advancements.

Samsung has also been considered one the best companies that successfully managed and implemented change initiatives.

Overview of Samsung’s position in the technology industry

In the consumer electronics segment, Samsung has established itself as a dominant force. Its diverse product lineup encompasses televisions, smartphones, tablets, wearables, home appliances, and audio devices.

The Galaxy series of smartphones, in particular, has enjoyed immense popularity and has emerged as a fierce competitor to other industry giants. Samsung’s televisions are also highly regarded for their cutting-edge display technologies, such as QLED and MicroLED.

The company’s advancements in semiconductor technology have contributed to faster computing speeds, increased storage capacities, and improved energy efficiency.

Samsung’s influence extends beyond consumer electronics and semiconductors. The company is actively involved in telecommunications infrastructure, including the development of 5G networks and the production of network equipment.

Samsung has also made notable strides in the realm of software solutions, including its own mobile operating system, Tizen, and various software platforms for smart devices.

Samsung Galaxy Note 7 Crisis

The Note 7 battery issue marked a significant crisis for Samsung, leading to a widespread recall of the flagship smartphone and causing considerable damage to the company’s reputation.

The crisis began in September 2016 when reports emerged of Note 7 devices catching fire or exploding due to faulty batteries. These incidents raised concerns about consumer safety and triggered a wave of negative publicity for Samsung.

Upon receiving initial reports of battery-related incidents, Samsung initially responded by issuing a voluntary recall of the Note 7 in September 2016. The company acknowledged the problem and expressed its commitment to addressing the issue promptly and effectively.

Samsung attributed the battery malfunctions to a manufacturing defect, specifically a flaw in the design that caused a short circuit.

To ensure customer safety, Samsung advised Note 7 owners to power down their devices and refrain from using them. The company swiftly implemented measures to exchange the affected devices, offering customers the option to either replace their Note 7 with a new unit or receive a refund.

Samsung also collaborated with mobile network operators and retail partners to facilitate the recall process.

In its initial response, Samsung took steps to communicate with customers and the public about the issue. The company published official statements expressing regret for the inconvenience caused and assuring customers of its commitment to resolving the problem. Samsung emphasized its dedication to quality and safety, promising to conduct thorough investigations and implement necessary improvements to prevent similar incidents in the future.

Media coverage and public perception during the crisis

During the Note 7 crisis, media coverage played a significant role in shaping public perception and amplifying the negative impact on Samsung’s brand.

The crisis received extensive coverage from both traditional media outlets and online platforms, leading to widespread awareness and public scrutiny. Here’s an overview of media coverage and its influence on public perception:

• News Outlets: Major news organizations across the globe reported on the Note 7 battery issue, highlighting incidents, the recall, and subsequent developments. Television news segments, newspapers, and online news articles extensively covered the crisis , emphasizing the potential safety risks and consumer concerns. The constant media attention contributed to the widespread dissemination of information and increased public awareness of the issue.
• Online Platforms and Social Media: Social media platforms played a pivotal role in the crisis, enabling the rapid spread of information and user-generated content. Users took to platforms such as Twitter, Facebook, and YouTube to share their experiences, express concerns, and criticize Samsung’s handling of the situation. Viral videos, photos, and personal accounts of Note 7 incidents gained traction, further fueling negative sentiment and influencing public perception.
• Expert Analysis and Opinions: Alongside news coverage, experts and industry analysts provided their insights and opinions on the crisis. Their assessments of Samsung’s response, the potential causes of the battery issue, and the implications for the company’s brand reputation contributed to the overall narrative. Expert opinions had the power to sway public perception and shape the understanding of the crisis.
• Consumer Forums and Discussion Platforms: Online forums and discussion boards dedicated to technology and consumer experiences became hubs for discussions surrounding the Note 7 crisis. Consumers shared their frustrations, exchanged information, and warned others about potential risks. These platforms served as gathering places for individuals affected by the crisis and amplified the negative sentiment surrounding Samsung’s brand.

Financial implications and losses incurred by Samsung

The Note 7 crisis had significant financial implications for Samsung, resulting in substantial losses for the company. Here are some of the key financial impacts experienced by Samsung as a result of the crisis:

• Recall and Replacement Costs: The recall and replacement process incurred significant costs for Samsung. The expenses involved in collecting and replacing over 2 million of Note 7 devices, including logistics, shipping, and refurbishment, were substantial. The costs also encompassed the testing and certification of replacement devices to ensure their safety. The total recall cost was estimated at $5.3 billion.
• Decline in Sales and Market Share: The crisis had a detrimental impact on Samsung’s sales and market share in the smartphone industry. As consumer confidence in the Note 7 and Samsung’s brand reputation declined, potential buyers shifted their preferences to alternative smartphone options. The decline in sales of the Note 7, coupled with the negative impact on the perception of other Samsung products, led to a loss of market share for the company.
• Stock Price Decline: The Note 7 crisis had an immediate impact on Samsung’s stock price. News of the battery issue, recalls, and subsequent negative media coverage led to a decline in Samsung’s stock value. Samsung shares fell approximately to 7 percent right after 2 months of the crisis.

Crisis Management Strategy Employed by Samsung

Following are the key aspects of Samsung Galaxy Note 7 crisis management strategy:

Immediate actions taken by Samsung to address the crisis

In the face of the Note 7 crisis, Samsung swiftly implemented a range of immediate actions to address the situation and mitigate the impact on consumers and the company’s brand reputation. Here are some of the key actions taken by Samsung:

• Voluntary Recall: As soon as reports of battery issues emerged, Samsung initiated a voluntary recall of the Note 7. This proactive step demonstrated the company’s commitment to consumer safety and willingness to take responsibility for the problem.
• Temporary Production Halt: To address the root cause of the battery issue, Samsung temporarily halted production of the Note 7. This decision aimed to prevent further distribution of potentially defective devices and allow for thorough investigations and corrective measures.
• Transparent Communication: Samsung made efforts to communicate openly and transparently about the crisis. The company issued official statements and press releases acknowledging the problem, expressing regret for the inconvenience caused, and reassuring customers of its commitment to resolving the issue. Transparent communication was crucial in maintaining trust and providing timely updates to affected consumers.
• Collaboration with Authorities: Samsung collaborated closely with regulatory authorities and industry experts to investigate the battery issue comprehensively. By engaging external expertise, the company aimed to identify the root cause and develop effective solutions. This collaboration demonstrated Samsung’s commitment to finding the best possible resolution.
• Customer Support and Safety Guidelines: Samsung provided clear instructions to consumers regarding the use of Note 7 devices, emphasizing the importance of safety. The company advised customers to power down their devices, participate in the recall, and utilize alternative devices in the interim. This approach prioritized customer safety and aimed to prevent further incidents.
• Increased Battery Testing and Safety Measures: Samsung implemented enhanced battery testing procedures and stringent safety measures to prevent similar incidents in the future. The company adopted more rigorous quality control processes, including additional safety certifications and testing standards, to ensure the highest levels of product safety.

Communication strategies employed by Samsung

Samsung employed various communication strategies to address the Note 7 crisis and manage the impact on its brand reputation. Effective communication was crucial in maintaining transparency, addressing consumer concerns, and rebuilding trust. Here are some of the communication strategies employed by Samsung:

• Official Statements and Press Releases: Samsung issued official statements and press releases to provide updates on the progress of the recall, investigations, and corrective actions. These statements expressed remorse for the inconvenience caused and reiterated the company’s commitment to customer safety. Clear and concise communication helped keep customers informed and reassured them that Samsung was actively working to resolve the issue.
• Direct Customer Communication: Samsung directly communicated with customers to provide instructions and updates on the recall process. The company utilized various channels such as email, SMS messages, and notifications through its official website and smartphone apps. This direct communication ensured that customers received important information and guidance regarding the recall and replacement program.
• Social Media Engagement: Samsung actively engaged with customers and the public on social media platforms, including Twitter, Facebook, and YouTube. The company responded to customer queries, addressed concerns, and provided updates on the progress of the recall. By engaging in two-way communication, Samsung demonstrated its willingness to listen, respond, and provide assistance to affected customers.
• Collaboration with Industry Experts: Samsung collaborated with industry experts, battery manufacturers, and regulatory authorities to investigate the root cause of the battery issue. This collaboration was communicated to the public, showcasing Samsung’s commitment to finding solutions and ensuring that the necessary expertise was involved in resolving the crisis.
• Advertisements and Marketing Campaigns: Samsung launched advertising and marketing campaigns focused on rebuilding trust and emphasizing its commitment to quality and safety. These campaigns highlighted Samsung’s dedication to addressing the issue and regaining consumer confidence. Advertisements often emphasized the company’s rigorous testing procedures and quality control measures to assure customers of the safety of its products.
• CEO Apology: Samsung’s CEO issued a public apology, taking personal responsibility for the crisis and expressing regret for the inconvenience and concern caused to customers. The CEO’s apology aimed to convey sincerity, empathy, and a commitment to rectifying the situation, while also reinforcing the company’s accountability and determination to regain trust. The apology was published on a full page in 03 major US newspapers – the Wall Street Journal, The Washington Post and The New York Times.

Collaborations with regulatory authorities and industry experts

Samsung worked closely with government agencies and regulatory bodies in various countries where incidents related to the Note 7 were reported. The company shared information, conducted investigations, and cooperated with authorities to ensure compliance with safety regulations and guidelines. Collaboration with government agencies helped align efforts to address the crisis and establish industry-wide safety standards.

In the United States, Samsung collaborated with the CPSC, an independent federal agency responsible for ensuring the safety of consumer products. Samsung worked together with the CPSC to investigate the battery issue and coordinate the recall process. This collaboration ensured that the recall efforts followed established safety protocols and provided consumers with accurate information.

Samsung collaborated with battery manufacturers to investigate the specific manufacturing defects that caused the battery issue. The company worked closely with these partners to analyze the battery designs, manufacturing processes, and quality control measures. By involving battery manufacturers in the investigation, Samsung aimed to identify the root cause and implement corrective actions to prevent similar issues in the future.

Samsung engaged independent testing labs to conduct thorough assessments of the Note 7 batteries and verify the effectiveness of corrective measures. These labs specialized in battery testing and certification, providing expertise and unbiased evaluation of the battery performance and safety. Collaboration with independent testing labs helped validate Samsung’s efforts to address the battery issue and instill confidence in the effectiveness of the solutions.

Post-Crisis Recovery and Rebuilding 

Samsung implemented more stringent quality control measures across its product development and manufacturing processes. This included enhanced battery testing protocols, increased inspections, and stricter quality assurance standards. By demonstrating a commitment to producing reliable and safe products, Samsung aimed to rebuild customer trust.

Extended Warranty and Customer Support: Samsung extended warranty periods for existing and new devices, including the Note 7, to provide customers with added assurance. The company also enhanced its customer support services, ensuring that customers could easily access assistance, product information, and technical support. These initiatives aimed to demonstrate Samsung’s commitment to customer satisfaction and support.

  Launch of subsequent product lines and their impact on brand perception

Following the Note 7 crisis, Samsung launched subsequent product lines, including flagship smartphones like the Galaxy S8 and subsequent iterations. These launches played a crucial role in shaping brand perception and rebuilding trust. Key factors that influenced brand perception and the recovery process include:

• Emphasis on Safety and Quality: Samsung placed a strong emphasis on safety and quality in its subsequent product launches. The company implemented rigorous testing procedures and introduced new safety features to ensure the reliability and safety of its devices. By highlighting these improvements, Samsung aimed to regain customer trust and reassure them of its commitment to producing high-quality products.
• Positive User Experience: Samsung focused on delivering positive user experiences with its new product lines. This included improvements in design, performance, and functionality to enhance customer satisfaction. By providing users with exceptional products, Samsung aimed to rebuild its reputation and generate positive word-of-mouth, contributing to brand recovery.
• Brand Messaging and Marketing: Samsung’s marketing efforts during subsequent product launches were carefully crafted to reinforce positive brand associations and regain customer trust. The company emphasized innovation, customer-centricity, and the commitment to quality and safety. Marketing campaigns highlighted features, benefits, and technological advancements to create a positive brand image and overcome the negative perceptions associated with the Note 7 crisis.

Final Words 

Samsung’s handling of the Note 7 crisis serves as a case study in crisis management. Despite the significant financial and reputational setbacks, the company took proactive steps to address the crisis, regain customer trust, and prevent similar incidents in the future.

The Samsung crisis management case study highlights the importance of swift and transparent communication, customer-centric actions, and continuous improvement in product safety and quality. By effectively addressing the crisis, Samsung was able to navigate the challenging situation and rebuild its brand, reaffirming its position as a leading global technology company.

Overall, the Samsung crisis management case study provides valuable insights into how a company can recover from a major setback, restore customer trust, and strengthen its position in the market through strategic actions and a relentless commitment to customer satisfaction and product excellence.

About The Author

Tahir Abbas

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It's been one of the most discussed technological failures of 2016, but as the dust settles around Samsung's recalled Galaxy Note 7 smartphone, one question remains: what actually went wrong with the phones?

Samsung has finally announced the answer or answers.

There were two battery manufacturing issues which caused the Note 7 to go up in flames. The first one related to battery size: batteries made by Samsung's SDI group were too small in one corner, causing negative electrodues to be bent and increase the likelihood of short circuiting.

The second issue was with batteries from a third party provider, Amperex Technology Ltd, which were found to be incorrectly welded. Points left on the batteries were able to penetrate protective insulating.

Before announcing the findings DJ Koh, President of Samsung Mobile said he wanted to "deeply apologise" for the incident.

In a statement Samsung said: "Samsung's investigation, as well as the investigations completed by three independent industry organisations, concluded that the batteries were the cause of the Galaxy Note7 incidents."

After explaining the issues, the South Korean company went on today to announce its earnings in 2016, recording its highest profit jump in three years despite the phone issues.

Samsung Electronics, the unit that mobile comes under, saw sales drop around two per cent but overall the company announced its full-year operating profit in 2016 was 29.24 trillion won (£20 bn).

A manufacturing engineering company, Instrumental, investigated the errors affecting the flagship phone last year.

According to Instrumental's teardown of the device, the Note 7's battery didn't have enough physical room for error. Samsung made the battery thinner, removing thickness margins, meaning the separators between the positive and negative layers may have been too thin, increasing the chance of these elements touching and sparking.

In addition, Instrumental pointed out that when batteries charge, chemical processes cause the lithium to migrate and the battery to "mechanically swell". Usually, around 10 per cent extra space is required to compensate for this, but the battery in the Note 7 entirely filled its pocket. This increased the risk of 'explosion'.

Read more: Why Samsung's Note 7 crisis could finally help solve the problem of poor battery life

The design wasn't completely reckless, though. Instrumental noted that the battery sits within a CNC-machined pocket, which will protect it from being affected by other internal components. "Looking at the design, Samsung engineers were clearly trying to balance the risk of a super-aggressive manufacturing process to maximise capacity, while attempting to protect it internally," said Instrumnetal's engineers .

In September, Samsung was forced to suspend sales of the new phablet after reports batteries were "exploding" and catching fire while in the hands of users, just days before the phone’s UK release.

At the time, Samsung said the devices were burning up due to an “isolated battery cell issue” . An official told the Yonhap News Agency in South Korea that a "problematic battery" had been installed in "less than 0.1 per cent of the entire volume sold."

Customers who had already bought the phones posted videos online showing the badly scorched devices, including YouTube user Ariel Gonzalez.

"Came home from work, put it on to charge for a little bit before I had class," Gonzalez said. “Went to put it on my waist and it caught fire. Yup. Brand new phone, not even two weeks old. Be careful out there, everyone rocking the new Note 7, might catch fire."

The tech giant ordered a global recall of at least 2.5 million devices, with hopes this would be the end of the crisis. It assured customers the fixed devices were safe .

It was assumed the smartphone's troubles were behind Samsung, but last week a replacement Note 7 began emitting smoke on a US plane. A Southwest Airlines flight to Baltimore was evacuated on Wednesday after smoke was spotted while the plane was at the boarding gate. The plane was evacuated and no injuries were reported.

The wife of the owner of the phone, Sarah Green, told Reuters her husband had replaced the device about two weeks ago, after getting a text message from Samsung.

On October 10, according to South Korean news agency Yonhap, the company decided to temporarily halt production of the Galaxy Note 7 following talks with safety regulators as the replacement handsets also pose a significant fire risk and health and safety issue. This decision has now been made permanent.

In a statement released by the company, it simply said it will move quickly to investigate the reported case and work with the US Consumer Product Safety Commission (CPSC).

“We remain in close contact with the CPSC throughout this process. If we conclude a safety issue exists, we will work with the CPSC to take immediate steps to address the situation,” said Samsung.

Samsung and the US Consumer Product Safety Commission announced a formal recall, meaning that every Galaxy Note 7 unit needed to be returned immediately.

An official investigation revealed reports of 13 burns and 47 reports of property damage directly related to the recall. Figures suggest a total of 1.9 million phones will be affected by the recall including the initial one million original Note 7s, and 900,000 'replacement' handsets.

Samsung advised customers to contact the network operator or shop where they purchased the original device. It has put in place a policy so that owners can exchange the device for a different Samsung smartphone, such as the Galaxy S7 or S7 Edge, and customers should receive a $25 (£20) giftcard or bill credit as well as the new device.

Alternatively, owners should be able to receive a full refund at their point of purchase.

When returning the devices, users were told to power down their device and Samsung has been sending out "fireproof" packing with special gloves to to ensure the safe return of its now obsolete device in.

Some Note 7 owners weren't ready to give up their device, but unfortunately due to the issues Samsung had to force them.

People in New Zealand who haven't returned the phones and have decided to continue to use them aren't being given a choice going forward. Samsung has told customers it will disconnect their service.

"As part of our commitment to ongoing safety, Samsung would like to make our customers aware of plans to discontinue network service for Note7 devices," the firm said in a statement. From November 18, anyone with a Note 7 in the country will not be able to connect to any network: meaning no data, texts, or calls – although the devices will still connect to Wi-Fi networks.

"We strongly urge any customers still using their Note7 to return their device to the place of purchase for a refund or replacement," the New Zealand branch of the company said. "Between November 4-18, we will contact our customers on at least two separate occasions with information about this network discontinuation event to ensure they have received adequate notice."

Samsung’s reputation as an innovative tech company has suffered since the first announcements of the faulty batteries. This comes at a particularly crucial time in the smartphone market as Apple recently announced its new iPhone 7 range and Google has revealed it is making its own smartphones, the Google Pixel , in-house for the first time. Samsung’s credibility as a smartphone pioneer will be adversely affected in this increasingly competitive market.

"This is one of their flagship products, one of the areas that motors brand values. Phones exploding in plane holds is going to leave a lasting impression, whatever Samsung does to fix the situation," Vijay Michalik, research analyst at Frost & Sullivan, told WIRED.

The battery problem in the Note 7 may be down to wider competition in the smartphone market.

"When you look at pushing the boundaries of battery technology, when you're putting more power inside a smaller area there's more room for error," added Michalik. "But in the future, we will be evolving to new types of battery technology that potentially won't be susceptible to the same extreme failures.

For Samsung to recover its reputation, Michalik believes it needs to underscore this current episode and move on.

"They need to move forward with the S8 and to continue to display some of their more innovative products. We consider VR to be one of the next big emerging areas and Samsung has a strong position there, which puts them far above the competition in that space," said Michalik.

It’s not only reputations that have been affected at Samsung. Analysts have estimated the first recall may have cost the company between $1billion (£805million) and $2bn (£1.61bn), due to the cost of replacing the phones and falls in the South Korean company’s share price.

The company was forced to file a revised operating profit estimate of 5.2 trillion won (£4bn), compared to the 7.8 trillion won it announced only a week before. Samsung also slashed its third-quarter sales estimate by four per cent.

Recently, the firm reportedly issued a copyright takedown for a parody video that showed a Grand Theft Auto 5 mod in which a Samsung Galaxy Note 7 was used as a weapon. The YouTube link no longer plays, and instead an error message is shown in its place. "This video is no longer available due to a copyright claim by Samsung Electronics America, Inc. and its affiliates."

The original description read: "GTA 5 Mod Showcasing the explosive Samsung Galaxy Note 7. You can blow people up with a Samsung Galaxy Note 7 in GTA V."

In the US, PhoneArena has reported that Samsung's battery issues are not constrained to the Note 7. An anonymous source, who works for a US wireless carrier, told the site that a customer came in with an exploded Galaxy S7 Edge, which was given to him as a replacement device.

A spokesperson for Samsung told WIRED it was unable to comment on the specific incident until it has been able to examine the device.

"Customer safety remains our highest priority and we want to work with any customer who has experienced an issue with a Samsung product in order to investigate the matter and support them," said the spokesperson.

It appears that overall, Samsung customers are not happy with the recent turn of events. It was announced on October 25 that more than 500 Galaxy Note 7 owners in South Korea have filed a lawsuit against Samsung over its handling of the device's recall process.

The plaintiffs want compensation from Samsung for the the costs they had to bear to visit shops to exchange their phones, for the time they had to wait to transfer data from the faulty device to the new phone, and also the pyschological harm from using the product.

The consumers are asking for 500,000 won (£361) compensation per head, though the amount might increase later.

Another Galaxy Note 7 owner, this time in Flordia, US, has reportedly sued Samsung after his phone exploded in his pocket , causing severe burns on his right leg.

Samsung's Galaxy Note 7 saga appears to have reached an end after the company says it is 'truly sorry', in an open letter to its customers.

In the letter, Samsung admitted it fell short on its promise to offer "best-in-class safety and quality" in its products. It apologised for not living up to customers' expectations or its own standards with the faulty Note 7 device.

Moving forward, Samsung said it is "fully committed" to identifying and addressing the battery problems the Note 7 faced, which caused the phone to burst into flames when charged. It will share the findings once the investigations are completed.

The letter ended by stating: "We will listen to you, learn from this and act in a way that allows us to win back your trust," and was signed by Samsung's European president and CEO, YH Eom.

The company is now looking towards a "new start" after problems with the smartphone.

On the 47th anniversary of the beginning of the South Korean company, Kwon Oh-hyun told Samsung employees : “The latest crisis made us look back at ourselves and think maybe we have grown complacent, and it served as momentum for a new start."

“We should continue to push for innovation in order to strengthen our competitiveness and technology leadership,” added Kwon.

As part of this new start, Samsung appears to be moving on from the faulty device and is preparing a compensation program for Note 7 owners to get their hands on the new Galaxy S8 device. The phone is set for release in March 2017, and customers are set to receive the new device for free or at a discounted price.

“The new compensation program is designed to make it easier for those who exchange their Galaxy Note 7 with existing smartphones, to shift into our next model coming next year,” a Samsung spokesperson told The Korea Economic Daily .

No details have been released about how the company will carry out the compensation program yet.

This article was originally published by WIRED UK

Samsung Galaxy Note 7 Crisis

James bai december 18, 2017, submitted as coursework for ph240 , stanford university, fall 2017.

On August 19th, 2016, Samsung Galaxy Note 7 (see Fig. 1) was released as a successor to Galaxy Note 5. With its IP68 water resistance, dual-sided curved display, iris recognition system, HDR color, and many other impressive features, the Note 7 broke pre-order records in South Korea, causing international releases to be delayed due to supply deficiencies. [1] Critics gave fairly positive reviews, praising for its HDR support and its streamlined user interface, while they criticized it for its very high price. [1] Dealing with these happy problems was short-lived, however, as Note 7s were recalled informally just two weeks after its release.

On September 2nd, 2016, Samsung suspended sales of the Note 7 and recalled some devices as manufacturing defect in the batteries caused excessive heating and caused fires. [2] Then, in just two weeks, Samsung issued a formal US recall and exchanged the phones with those with batteries sourced from different suppliers. [2] However, when these replacement phones caused issues as well, Note 7s were recalled worldwide and their productions were permanently stopped. [1] The Note 7s life had only spanned just less than two months before the permanent shutdown on October 11th, 2016.

The protagonist, or the antagonist, in this devastating story that caused injuries on Note 7 users and cost Samsung 6 billion dollars, was the Note 7 battery. [2] We will now examine the cause of the overheating and explosions by delving into this source of energy.

The Causes of Explosion

The first recall.

Before the first batch of recalls were made, Samsung had sealed a sizable 3500 mAh lithium battery into a rather thin 7.9 mm smartphone. [3] Although lithium battery explosion is specific to Samsung phones, 35 customers had reported severe overheating or explosions just after two weeks of the device's release. [4] In addition, around half of the batteries were made from a subsidiary called Samsung SDI, and some malfunctions in its manufacturing process created a misfit in the device. [3] As Samsung explains, the negative electrodes was deflected at the upper corner of the phone because of the pressure the big battery size on a small encapsulating phone. [5] Thus, these defections allowed these negative electrodes to come in contact with the nearby positive electrodes and create a short circuit. [5]

The Second Recall

According to Samsung again, it made the grave mistake of revamping its Note 7 production after the first recall, thinking that the phones made with Amperex Technology were fine. [3] However, this sudden ramp up caused a number of manufacturing issues. Again, the phones were recalled, and Samsung had to ultimately take them out of production. [3] The high-wielding burrs on the positive electrode had penetrated the insulation taped the separator, which helps the positive and negative electrode to meet within the Jelly Roll. [5] This allowed the positive tab of the battery to directly interact with the negative electrode - short circuiting the board. [5] Additionally, this manufacturer for the second batch had made simple mistakes such as not applying insulation tape between the positive tab and the separator. [5]

In response to this horrible crisis, Samsung created a battery advisory group and a new quality assurance process called the 8-Point Battery Safety Check. Along with this, Samsung said it would contribute to the learning and processes for testing lithium ion batteries to global standardization bodies. [5]

© James Bai. The author warrants that the work is the author's own and that Stanford University provided no input other than typesetting and referencing guidelines. The author grants permission to copy, distribute and display this work in unaltered form, with attribution to the author, for noncommercial purposes only. All other rights, including commercial rights, are reserved to the author.

[1] " Samsung Apologises For Galaxy Note 7 and Corruption Scandals ," The Telegraph, 24 Mar 17.

[2] H. Tsukayama, " Samsung Will Stop Making the Galaxy Note 7 ," Washington Post, 11 Oct 16.

[3] P. Mozur, " Galaxy Note 7 Fires Caused by Battery and Design Flaws, Samsung Says ," New York Times, 22 Jan 17.

[4] A. Peterson, " Samsung Recalls Galaxy Note 7 After Battery Explosions and Fires ," The Washington Post, 2 Sep 16.

[5] T. W. Martin and J. D. McKinnon,, " Samsung Investigation Blames Battery Size for Galaxy Note 7 Fires ," Wall Street Journal, 20 Jan 17.

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Why Samsung Abandoned Its Galaxy Note 7 Flagship Phone

Galaxy note 7 abandoned by customers, consumers put their safety first after samsung announced that it would stop selling its troubled galaxy note 7 smartphone following new reports of the phones catching fire..

SOUNDBITE (Korean) Chung Woo Hyun, KT public relations manager: “We have halted sales of Samsung Galaxy Note 7 at front-line retail stores from (October) 11th. We will discuss further with Samsung Electronics in order to minimise any inconvenience that consumers may face.” SOUNDBITE (English) Jonathan Roubini, Technology Expert: “This is very damaging for Samsung and the fact that they messed up on the recall makes things extremely worse.” SOUNDBITE (English) Jonathan Roubini, Technology Expert: “Some argue that the battery being so large in terms of milliamps as well as the size being so small might have been the cause, but clearly after new phones have been released after the recall and the new phones have issues as well, there’s something else in the phone circuitry that Samsung missed and they should be fixing.” (SOUNDBITE) (Korean) 35-YEAR-OLD SOUTH KOREAN, LEE WON-JIN, SAYING: “I was going to buy this product. It was a flagship model which represented Samsung, but I’m very disappointed with its low quality as a customer who had planned to purchase the product. I hope Samsung will fix the device soon and resume the sale.” SOUNDBITE (English) Jonathan Roubini, Technology Expert: “Samsung will survive this but People have to feel safe buying new phones. If Samsung makes a mistake on a flagship phone, who is going to trust them in the future.” SOUNDBITE (English) Sierra Cannon, New York City “I wouldn’t want my phone to blow up in my hand right, so I’d probably get an iPhone. That seems like the best thing to do these days.” SOUNDBITE (English) Andrew Falco, New York City: “My safety’s first. As much as I love Samsung, my safety is definitely first.”

By Brian X. Chen and Choe Sang-Hun

• Oct. 11, 2016

When several Samsung Galaxy Note 7 smartphones spontaneously exploded in August, the South Korean company went into overdrive. It urged hundreds of employees to quickly diagnose the problem.

None were able to get a phone to explode. Samsung’s engineers, on a tight deadline, initially concluded the defect was caused by faulty batteries from one of the company’s suppliers. Samsung, which announced a recall of the Note 7 devices in September, decided to continue shipping new Galaxy Note 7s containing batteries from a different supplier.

The solution failed. Reports soon surfaced that some of the replacement devices were blowing up too. Company engineers went back to the drawing board, according to a person briefed on the test process who spoke on the condition of anonymity because the internal workings were confidential. As of this week, Samsung’s testers were still unable to reproduce the explosions.

By then, it was too late. On Tuesday, Samsung said it was killing the Galaxy Note 7 entirely. The drastic move is highly unusual in the technology industry, where companies tend to keep trying to improve a product rather than pull it altogether. And it caps a nearly two-month fall for Samsung, which has taken a beating from investors, safety regulators and consumers over its trustworthiness — especially with a marquee product that was supposed to rival Apple’s iPhone.

The damage has been severe. Even before Samsung announced it was ceasing production of the Galaxy Note 7, its South Korea-traded shares fell more than 8 percent, its biggest daily drop since 2008, knocking $17 billion off the company’s market value. Strategy Analytics, a research firm, had estimated earlier that Samsung could lose more than $10 billion because of the phone’s problems. Samsung’s smartphone business has helped its other divisions by buying their computer chips and panel screens.

Scotching the Note 7 does not end the questions facing Samsung. It still has not disclosed what specifically caused the Note 7s to smoke and catch fire — or even whether it knows what the problem was. And the company may face questions about the safety of its other products, such as kitchen appliances and washing machines.

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What samsung did wrong when responding to the galaxy note 7 disaster.

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Photographer: Chris Ratcliffe/Bloomberg

Samsung has spent the better part of this month managing a crisis that is hurting them globally. It all started at the beginning of September when several Galaxy Note 7 phones were reported to have spontaneously combusted into flames for no apparent reason. This risk is so great, in fact, that several airlines and safety regulators around the world have put out warnings , stating that the Galaxy Note 7 should not be stowed in checked luggage, nor should it be turned on or plugged into the plane's USB port for charging while in-flight.

Watch on Forbes:

How Did Samsung Fare In Their Crisis Response?

Samsung has clearly chosen to take this situation seriously from the get-go, and has demonstrated care and concern for their customers' safety. Part of the way they've done this is via their swift communications and response to this serious issue - only those swift communications have also been their downfall.

While it's true that timely and informative communication is one of the secrets to successful crisis management in this day and age, it's also equally important for those communications to be factual. Taking too long to communicate in a crisis will result in criticism, lack of control over messaging and can ultimately hurt your organization's reputation and bottom line. But on the other hand, speaking too quickly can have equally damaging repercussions - a harsh lesson that Samsung is in the process of learning.

For example, earlier this month Samsung released a statement in Hong Kong, assuring customers that their phones used a different battery than the ones being reported about, and that as a result, their Hong Kong customers would not be affected. However, the very next day Samsung was forced to retract that statement when they realized that 500 phones in Hong Kong had in fact been affected after all.

Additionally, their swift response also resulted in frustrating regulators, as the company did not adhere to the U.S. Consumer Product Safety Commission's recall guidelines and protocols , which state that coordination of recalls must be done in collaboration with the CPSC, which Samsung initially failed to do.

While I believe that their intentions for a swift response to this important issue were honorable, their rashness resulted in frustrating their customers and regulators, as well as continued and renewed media attention which has impacted their reputation and "shaved as much as $14 billion off [their] market value," as reported by the NY Times .

How To Balance Timeliness And Accuracy In Your Crisis Communications

Crisis management today requires a delicate balance between timeliness and accuracy. You cannot compromise on either one, as both can result in the amplification of challenges and risks within your crisis management.  So then the big question becomes: how can you enable your team to achieve this required balance in the heat of the moment?

The answer is: by being prepared to both understand and meet your stakeholders' expectations.

For example, stakeholders expect you to respond swiftly in a crisis. What they don't expect is for you to have all the answers right from the start. What they expect instead is to be provided with timely, accurate and transparent information and updates throughout the different stages of the incident's crisis management. Let's use Samsung as an example to make this real.

Had Samsung issued what I call a "first response statement" at the onset of the crisis, rather than starting off with more of an "official response," they could have demonstrated the same care and concern, while avoiding the misstatements, confusion and retractions.

The Different Between A First Response Statement And An Official Response Statement

The first response statement is a thoughtfully crafted statement that assures stakeholders that the organization is taking the situation seriously. It provides information regarding what the organization is currently doing to manage the incident, as well as information on when stakeholders can expect to receive more detailed information and answers to their remaining questions. In essence, this statement is meant to:

• Demonstrate to key stakeholders that the organization cares and is prioritizing the management of the incident;

• Answer stakeholders' immediate questions, i.e.: "did you know?", "do you care?", "what are you doing about it?", "when will we learn more?", etc.;

• Buy the organization more time to actually manage the incident behind the scenes and get to the root of the problem;

• Position the organization as the voice of trust, credibility and leadership throughout the crisis.

This first response statement can and should be issued as quickly as possible. A good rule of thumb is to strive to release it within the first 15-60 minutes from the time the crisis develops an online presence. The good news is that your first response statement can, for the most part, be pre-drafted and pre-approved before a crisis occurs, giving you more of a chance to meet this tight timeline.

The official response statement, however, is what is communicated once the organization has had the appropriate time to assess the situation and provide fact-based and confirmed answers to the bigger questions. As an example, in the case of the Galaxy Note 7, Samsung's official communications should have come after they coordinated the details of their recall with the  CPSC in the US, and after they thoroughly confirmed if and how their Hong Kong market would be impacted.

The timing and accuracy of your communications in a crisis counts for a lot. The stakes are high, stakeholders are upset and stress dictates that it's easy to make mistakes, even with the best intentions. But there are things you can do to help stack the chips in your favor. Thinking through your crisis response strategy and pre-drafting that first response statement is a good place to start. I'm sure Samsung is wishing they would have held off on those initial details for a day or so.

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Samsung Investigation Reveals New Details About Note7 Battery Failures

Batteries for both the original and replacement note7 smartphones, though designed differently, had dangerous flaws. some experts ask: ‘are phones getting too thin', sharing is nice.

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Samsung says two different battery flaws were to blame for the fires that plagued its flagship Galaxy Note7 smartphone throughout the fall, leading to two separate recalls and, ultimately, the permanent withdrawal of the model from the market. The details are being released after an internal investigation, following weeks of speculation by reporters and analysts about what the company's report would conclude.

Consumer Reports and several other outlets were briefed on the findings in separate meetings on Thursday. An article published by the Wall Street Journal on Friday and widely cited by other news organizations said the report found that a number of the fires occurred because "some of the batteries were irregularly sized." That conflicts with details provided to Consumer Reports and revealed in a press conference on Sunday night. A Samsung representative said the information published on Friday "did not come from Samsung."

It has been known since early on that the phones' lithium-ion batteries caused the explosions and fires, which began to occur around the globe shortly after the model was launched to consumers on Aug. 19, 2016. The Note7 fires became a staple of news in the fall, leaving in their wake damage that includes a destroyed Jeep , some injuries, and the evacuation of a Southwest Airlines flight .

According to Samsung, the new investigation shows that problems were isolated to the batteries and were unrelated to other hardware components or to the software that manages energy use in the device. However, some experts say that Samsung's drive to make thinner phones with longer battery life may have contributed to the problem.

In addition to its own investigation, Samsung contracted with independent groups, including Underwriters Laboratories, to look into the causes of the fires.

The company used batteries from two suppliers in its Note7 phones—a company division called Samsung SDI and a separate company, Amperex Technology Ltd., that makes batteries for many smartphone brands. Samsung officials said the batteries from the two companies were designed and manufactured differently, and failed for separate reasons. 

That distinction is important, because it helps explain the unusual sequence of events during the recalls in the fall. Samsung first said it was stopping sales of the phone on Sept. 2 , and announced a formal recall on Sept. 15 in cooperation with the Consumer Product Safety Commission. But, with permission from the CPSC, Samsung began distributing replacement Note7 phones just a few days later.

Soon these, too, started catching fire, and a second recall was announced on Oct. 13 .

Now, Samsung is saying that its investigation shows there was no reason to believe the new phones would malfunction. "It was a very tough period, and we are sorry," DJ Koh, Samsung's global president of mobile communications, said during the briefing. "The most important thing for us is customer safety," and, ultimately, "earning back customers' trust."

How Defects Led to Short Circuits

Like other li-ion phone batteries, the Note7 batteries were made of sheets of material that served as positive and negative electrodes, with a separator between them. The electrodes and separator were folded up into a "jelly roll," then inserted into a pouch or casing.

Chemical reactions in a battery's electrodes allow an electrical charge to flow between them, generating a current that flows through a circuit and powers the device. Normally, the electrodes don't touch; if they do, a "short circuit" is created, and that can spark a fire.

During the presentation, executives showed a CT scan of a Note7 from before the first recall, in which one corner of the battery's pouch impinged on the jelly roll, deforming the negative electrode. In some consumers' phones, the positive and negative electrodes touched, causing a short circuit.

Samsung officials said that the company found that flaw before Sept. 15 and could see that it wasn't present in batteries made by the second supplier. At the time, the company did not disclose those details to the public.

We "were very comfortable" switching all battery production to the second manufacturer, marketing senior VP Justin Denison said.

Fires in the second group of batteries were caused by a manufacturing defect, Denison said. A sharp edge, or burr, was created by inconsistent welds in one section of the battery, the "positive tab." (See illustration, above.) In some cases the burr pierced insulating material and the separator between the two electrodes, causing a short circuit.

Thin Design a Contributing Factor

Samsung says its investigation involved 200,000 handsets, 30,000 standalone batteries, and 700 engineers working in a dedicated facility. Phones were tested with the back cases both on and off (see photo at the top of the article) and with various types of software running. They were evaluated during both rapid and standard charging. According to the company, batteries tested on their own failed at about the same rate as complete phones did.

This may show that no hardware beyond the batteries was at fault, but others in the battery industry say that smartphone design trends are making flaws more probable.

Qichao Hu is the CEO of SolidEnergy, a developer of high-energy-density batteries used in mobile devices, high-altitude drones, and clean-energy vehicles. He thinks Samsung's battery problems were partly a result of the company's attempt to maximize battery life while cramming components into ever-thinner phone cases. High-end phones typically use custom-designed batteries.

"Samsung is really pushing the boundaries, making the separators really thin," Hu says. "Making the separator thinner makes the battery much easier to short because it's already a porous membrane and that makes it easier for pinholes to form in the separator."

The Underwriters Laboratories investigation concluded that thin separators could have contributed to the risk of short circuits in both Note7 batteries. In addition, "higher energy density" in batteries such as those used in the Galaxy Note7 "can exacerbate the severity of a battery failure," Sajeev Jesudas, the president of UL's Consumer Business Unit, said at a public Samsung press conference. 

If you want safer batteries, according to Hu, you'll probably be looking at a bulkier phone with a removable battery. "They have a protective plastic case and may even have a gas relief valve to diffuse volatile conditions," he says. "Non-removable batteries don't have a case—just aluminum foil wrapping."

The other option for phone makers, according to Hu, is to create a very thin phone with a shorter battery life.

Elliot F. Kaye, the chairman of the CPSC, says that the agency is continuing its own investigation, but that it has "nowhere near the resources and people power that Samsung does. Not even close."

Successful Recall

The saga of the Galaxy Note7 is ending with a singular accomplishment: one of the most successful recalls in history, as measured by the number of products that were recovered from consumers. As of mid-January, Samsung says 97 percent of all Galaxy Note7 smartphones have been returned in the U.S., and 96 percent worldwide.

"A 97 percent recall rate is almost unheard of," says Pamela Gilbert, a former executive director of the CPSC who is now a partner at Cuneo Gilbert & LaDuca, LLP. The historic figure is often less than 50 percent, she says, even when auto safety is concerned. "People have an amazing ability to avoid doing things in their best interest if it's inconvenient." 

Like Consumer Reports and some other organizations, Gilbert was critical of Samsung in September for  not involving the CPSC  quickly enough. During the Consumer Reports briefing, executives said that the company notified the agency of problems on Sept. 2. But in the end, Gilbert says, "I think [Samsung] took this very seriously and wanted to get these phones back." 

One reason for the success of the recall was the steady beat of publicity, both from news outlets and other sources. For instance, the Federal Aviation Administration banned Note7 phones from flights, and until Jan. 10  the agency required airline personnel to make announcements telling passengers not to bring the phones on planes. Samsung dispatched customer-service staff to the country's 22 largest airports to help facilitate returns.

Tim Baxter, the president of Samsung America, said the biggest reason for the high success rate was that "the subject of the recall was actually the communication tool in reaching consumers." 

Once the recall was put in place, 23 million text messages were sent to Note7 owners telling them to return the phones, Baxter said. When people plugged in the phones to charge, a message appeared advising them of the recall, and through a series of firmware updates the company and its cellular partners reduced the functionality of the phones, until they were finally rendered inoperable.

The CPSC's Kaye has praised Samsung for steps it took "to drive up the recall response rate" and push "for every one of the recalled phones to be returned." 

Samsung officials said that they have instituted a new, eight-point program of quality assurance measures to help prevent future problems. And they plan to share what they've learned with others in the battery and mobile-phone industries. 

Kaye says the CPSC would work with the company to spread the message. "Beyond an excellent recall response rate, we need more good to come out of the Note7 recalls and I believe Samsung agrees," Kaye says. "At a minimum, industry needs to learn from this experience and improve consumer safety by putting more safeguards in place during the design and manufacturing" of technologies that use Li-ion batteries. He also said, "This is why we need to modernize and improve the safety standards for lithium-ion batteries in consumer electronics."

Update: This article has been updated with additional illustrations and comments from an Underwriters Laboratories executive and the chairman of the Consumer Product Safety Commission.

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Exploding of Samsung Galaxy Note 7: A Case Study Report

• To find inspiration for your paper and overcome writer’s block
• As a source of information (ensure proper referencing)
• As a template for you assignment

Introduction

Identification of key issues, lessons learnt, recommendations for enterprise risk management (erm), reference list‌.

Samsung is one of the leading handset manufacturers and is renowned for its cutting-edge technologies. In 2016, the company went into trouble over a battery safety concern and experienced financial and reputational damage. On August 2, 2016, Samsung introduced its latest top device, the Galaxy Note 7. A South Korean user reported the Galaxy Note 7 exploding on August 24, just a few nights after the phone’s release.

Several customers claimed their gadgets were overheating and crashing shortly after the incident. The following day, Samsung launched the preliminary withdrawal of 2.5 million smartphones due to defective batteries (Heathman, 2017). Therefore, this report aims to determine and evaluate risk management challenges based on the Samsung Galaxy Note 7 suspension altercation. Furthermore, the paper offers a range of suggestions for strengthening Samsung Company’s business risk administration functions that it should pursue to establish its enterprise preparedness abilities.

First, the smartphone market competitiveness has increased in recent years. Samsung, a market leader, competes with Apple with its Galaxy Note series. In addition, certain new entrants, such as Huawei, are expanding rapidly. Therefore, the competitive threat could be Samsung’s most apparent worry. Secondly, shifting consumer preferences resulting from technological progress pose dangers for Samsung. Samsung is renowned for its innovative technology, and the corporation is compelled to regularly update and improve its expertise due to the ever-shifting preferences of consumers and the intense rivalry in the marketplace.

Notable is the possibility of defective items, and the fundamental attribute of cellphones is their performance. Since Samsung aims to provide superior gadgets and solutions, merchandise quality might be a greater priority for the company. Additionally, Samsung outsources the production of product elements; therefore, third parties’ incompetence could harm Samsung. The technique reduces Samsung’s risk associated with controlling its items’ general effectiveness. In addition, the preceding risks may result in reputational damage, which is inextricably linked to customer loyalty. Consequently, if a company’s reputation is compromised, sales income could be significantly affected.

Recent Note 7 explosions have destroyed Samsung’s reputation for reliability, like a residence of chips on fire. There is no verification as to the precise cause of Samsung’s catastrophe. Initially, the business attributed the incidents on a specific battery cell fault, but it came out that not even Samsung knew the precise cause of the blasts. While it appeared that Samsung was steadily gaining control of the situation, a few more Note 7s burst, but this time the circumstances were distinct. Where did Samsung go awry with the Note 7, and was it too premature to cease smartphone operations? The following conclusions can be inferred from the explosion of Samsung’s Note 7.

There is no Gadget Immune to Explosions

In the past, there have been countless incidents of exploding devices, and while none attracted as much publicity as the Note 7, most were hazardous. In fact, every lithium-ion battery-powered equipment is vulnerable to accidents. One of the explanations why mobile phones became so popular was their long standby duration without taking up much room. Therefore, this was the product of tightly populated batteries, which represented a technological breakthrough and increased the chance of short circuits. Currently, all smartphones are driven by these cells, and although the likelihood of exploding is exceptionally low, even a little design flaw can result in an accident.

Expensive does not Guarantee Safety

The Samsung Galaxy series has traditionally dominated the luxury smartphone product category. After the release of the Galaxy S6 and Galaxy S6 Edge, the handsets have even chipped into Apple’s market share due to their superior build quality. However, this does not imply that they are safer than less expensive devices. These handsets continually push the technological envelope; mainly, battery expertise has not kept pace with the progress of other mobile hardware, so producers are introducing capabilities such as fast charge and high-density packs to meet consumer demands. In contrast, most flagship models showcase the corporation’s newest, least-tested innovation regarding the actual customer experience. Note 7’s context leads to modest safety concessions that could very well end in a catastrophe.

Revised Safety Legislations

The present smartphone safety laws are not as stringent as they should be. Most nations have their regulatory agencies to establish safety processes, but with the explosive rise of smartphone adoption, these restrictions are inadequate for ensuring the gadgets are thoroughly tested. Specific absorption rate (SAR) estimates have proven ineffective in examining real-world impacts and changes, even in the context of mobile radiations. The majority of testing assumes there is no direct skin interaction with the equipment. The Federal Communication Commission (FCC) asserts that any smartphone subjected to routine radiation assessments while in direct proximity to human skin will underperform.

Battery Innovation requires Special Changes

When it comes to smartphone advancement, battery invention is on the rise. Power is essential for all electronic devices, and the most effective method for energy storage was discovered in 1991 (Aykol et al., 2020). Since their conception, the lithium-ion batteries driving people’s smartphones have remained virtually unchanged. Even though the battery sector has increased by 5 to 10% annually, there has been no innovation to maintain the increasing need for power (Aykol et al., 2020). With every smartphone, there is a desire for a more multicore hardware, a larger and more pixel-dense display, and slimmer profiles. The increased processing capacity gives gadgets additional capabilities, but the cells’ breakthrough cannot power these chipsets. Regardless of the smartphone’s cost, most customers are compelled to scrounge for energy at the end of the day.

Enterprise risk management (ERM) is a technique that takes a tactical view of risk assessment from the standpoint of the whole company or corporation. Saeidi et al. (2019) enumerated that ERM is a top-down methodology that tries to detect, appraise, and plan for prospective losses, threats, liabilities, and other prospects for the destruction that may impede an institution’s activities and aspirations and result in losses. Enterprise resilience is the ability to endure systemic disruptions and prepare for new risk situations.

A resilient firm aligns its approach, processes, operational processes, regulatory regime, and decision-support functionality to identify and adapt to ever-changing risks. In addition, it makes a firm withstand interruptions to its foremost profit drivers and gain competitiveness over less adaptable rivals. Such resilient companies promote transparency and implement rules for executives and boards to manage enterprise-wide risks (Bemthuis et al., 2020). It can survive illegal or dishonest staff behavior, IT equipment breakdowns, disturbances in interconnected supply chains or consumer connections, severe market circumstances across geographies, and many other upheavals businesses confront today (Bemthuis et al., 2020). The following recommendations will assist Samsung in strengthening its corporate risk management to establish resilient business capabilities to avoid a similar issue to the Samsung Galaxy Note 7.

First, Samsung Inc. management should thoroughly evaluate the firm’s competitive plans. As previously indicated, Samsung failed to manage competition risk effectively. The leaders’ erroneous decision to shorten the timeline for engineers and part suppliers led to the battery safety catastrophe. Therefore, some enhancements to the risk administration procedure should be made to ensure that the organization is on the correct course relative to its rivals. Samsung requires an internal risk management committee to assist in assessing the hazard exposure of its initiatives and managerial choices. The group will be able to evaluate all alternative outcomes and spot possible dangers. Then, senior management should be provided with a balanced scorecard that details the business goal, research aim, concerns, and company capabilities. The report can assist managers in identifying hazards and balancing profits and risks. In addition, with adequate risk intelligence, directors can devise strategies for adapting to intense rivalry and gaining a competitive edge.

Second, as a company specializing in luxury handheld devices, the quality problem is crucial. Samsung should, therefore, have a rigorous quality assurance procedure. Even while Samsung has made some attempts to upgrade its energy test system, such as its eight-point battery wellness monitoring program, Samsung still has room for improvement regarding quality assurance. On the one hand, Samsung and its battery provider could communicate more. Samsung might obtain further knowledge about its suppliers’ capabilities, choose vendors and make purchases accordingly. Alternatively, Samsung might create a different risk management group to check product quality based on external reports; examples include customer testimonials; therefore, the organization can quickly recognize. By cooperating with the internal risk control department, Samsung could anticipate quickly identifying the source of the issue. Additionally, the risk administration team could prepare preparations for any product-related concerns. As a result, the plan will facilitate the corporation’s problem resolution.

Last, Samsung should enhance its customer interaction to contain and mitigate the crisis’s impact. Utilizing social media effectively and increasing the disclosure of data could lead to the desired outcome. Since more people are utilizing digital platforms and fewer individuals routinely visit the company portal, most individuals acquire information more quickly through media sites. Samsung is encouraged to utilize these platforms to disseminate vital information effectively. In addition, Samsung should boost its crisis-related informational openness. When experiencing a catastrophe, the organization needs to get the comprehension of its customers. As quickly as feasible, Samsung should inform consumers of its inquiry into the situation to preserve customer trust in its merchandise. Moreover, the enhanced transparency of crisis-related material could demonstrate to clients the business’s favorable view and attempts to defend its brand.

In conclusion, the smartphone market competition has intensified in recent decades. Apple is in rivalry with industry leader Samsung’s Galaxy Note series, and newcomers like Huawei are developing swiftly. Consequently, the competitive pressure may be Samsung’s primary concern. One of the reasons why smartphones became so prominent was their long standby time and small footprint. Therefore, this resulted from densely packed batteries, which represented innovative progress but raised the probability of a short circuit.

Historically, the Samsung Galaxy series has monopolized the premium smartphone industry. In the frame of reference of Note 7, this results in minor safety compromises that could very well result in a disaster. ERM is an approach that adopts a tactical perspective on risk management from the perspective of the entire organization. It is a top-down approach that attempts to detect, evaluate, and strategize for potential losses, dangers, obligations, and other possibilities for a collapse that may inhibit a company’s actions and objectives and generate losses. A resilient strategy will conform Samsung to its methodology, procedures, internal operations, regulatory system, and decision-support capabilities in a manner that enables it to recognize and acclimate to ever-changing risks. In addition, it allows a company to withstand disruptions to its primary profit drivers and gain a competitive advantage over less adaptable competitors.

To solidify its corporate risk management and avoid a circumstance similar to the Samsung Galaxy Note 7, Samsung’s leadership should comprehensively analyze the company’s competitive strategies. As a firm that concentrates on premium portable gadgets, the issue of quality is paramount. Therefore, Samsung should have a stringent quality assurance method. Samsung should improve its user engagement to minimize and reduce the crisis’s effects. Effective use of digital networks and more information transparency could contribute to the intended outcome.

Aykol, M., Herring, P. and Anapolsky, A. (2020) ‘ Machine learning for continuous innovation in battery technologies .’ Nature Reviews Materials , 5 (10), pp.725-727. Web.

Bemthuis, R., Iacob, M.E. and Havinga, P. (2020) ‘ A design of the resilient enterprise: A reference architecture for emergent behaviors control .’ Sensors , 20 (22), p.1-39. Web.

Heathman, A. (2017). Samsung’s Galaxy Note 7 phones: what was wrong with them? Web.

Lopez, M. (2017). Samsung explains Note 7 battery explosions, and turns crisis into opportunity . Forbes . Web.

Saeidi, et al. (2019) ‘ The impact of enterprise risk management on competitive advantage by moderating role of information technology .’ Computer Standards & Interfaces , 63 , pp.67-82. Web.

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IvyPanda. (2023, December 4). Exploding of Samsung Galaxy Note 7: A Case Study. https://ivypanda.com/essays/exploding-of-samsung-galaxy-note-7-a-case-study/

"Exploding of Samsung Galaxy Note 7: A Case Study." IvyPanda , 4 Dec. 2023, ivypanda.com/essays/exploding-of-samsung-galaxy-note-7-a-case-study/.

IvyPanda . (2023) 'Exploding of Samsung Galaxy Note 7: A Case Study'. 4 December.

IvyPanda . 2023. "Exploding of Samsung Galaxy Note 7: A Case Study." December 4, 2023. https://ivypanda.com/essays/exploding-of-samsung-galaxy-note-7-a-case-study/.

1. IvyPanda . "Exploding of Samsung Galaxy Note 7: A Case Study." December 4, 2023. https://ivypanda.com/essays/exploding-of-samsung-galaxy-note-7-a-case-study/.

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IvyPanda . "Exploding of Samsung Galaxy Note 7: A Case Study." December 4, 2023. https://ivypanda.com/essays/exploding-of-samsung-galaxy-note-7-a-case-study/.

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Samsung Note 7 -An Unprecedented Recall That Created History: Exploding Phones Recovered – Exploded Trust

This study aims at reviewing the literature to explore the reasons and rationale of buyer's preference of one particular brand over the other one in high-tier smart phones industry. This shall be linked to the recent issues faced by Samsung concerning the Note 7 explosions, causing a great monetary and a greater non-monetary loss the global electronics giant. Studying and building Note 7 case adds more variables to the initially reviewed literature regarding brand preferences of consumers in high-tier smart phones industry. Determinants and drivers of decision-making and preferences were explored using the Systematic Literature Review approach. Thereafter, customer dissatisfaction variables from Note 7 incidents were explored and analysed. Two equations were added up to generate and extend f indings. Three major factors were identif ied including Quality, Consistency and Care for Customers. The concluded outcome of the study limited to be utilized primarily for studying high tier smart phone industry but a glimpse of it can also be shadowed upon high tier and niche market brands. This paper is the f irst of its kind case study on a f irst of its kind incident that happened with Note 7 – one of the most talked about cases of 2016 and can be used as stepping stone for further analysis into this or similar cases.

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Build better handbook, case studies, samsung galaxy note 7 teardown: how aggressive design caused battery explosions.

Anna-Katrina Shedletsky

Instrumental technology helps hardware companies find and fix manufacturing issues. Our inspection equipment collects high-resolution images and other data about units during assembly, and our software maximizes engineering efficiency with  inspection, comparison , and  measurement tools .

In September, the first reports of Samsung Galaxy Note 7 batteries exploding hit social media. At first, Samsung identified the issue as one relating to the lithium polymer battery manufacturing process by Samsung SDI, where  too much tension was used in manufacturing , and offered to repair affected phones. But several weeks later, some of the batteries in those replacement units also exploded once they were in the hands of customers — causing Samsung to make the bold decision to not only recall everything, but to  cancel the entire product line .

This is every battery engineer’s nightmare. As hardware engineers ourselves, Sam and I followed the story closely. Different sources at Samsung reported different reasons for why the batteries shorted: tension in the cell fabrication, squeezing the layers too much during processing, poorly positioned insulation tape, etc. These theories all suggest a battery part-level issue, likely due to Samsung pushing the manufacturing parameters a little too far in order to make the highest capacity battery in the smallest package. But, if it was only a battery part issue and could have been salvaged by a re-spin of the battery, why cancel the product line and cede several quarters of revenue to competitors? We believe that there was more in play: that there was a fundamental problem with the design of the phone itself.

We acquired a Galaxy Note 7 and with a fire extinguisher close at hand, tore it down. We used an Instrumental station to document the process. What we found was surprising: the design can compress the battery even during normal operation (see footnote).

Why does this matter? The Note 7’s lithium-polymer battery is a flattened “jelly-roll” consisting of a positive layer made of lithium cobalt oxide, a negative layer made of graphite, and two electrolyte-soaked separator layers made of polymer. The separator layers allow ions (and energy) to flow between the positive and negative layers, without allowing those layers to touch. If the positive and negative layers ever do touch, the energy flowing goes directly into the electrolyte, heating it, which causes more energy to flow and more heat — it typically results in an explosion. Compressing the battery puts pressure on those critical polymer separator layers that keep the battery safe. Samsung stated that these separator layers may have been thin to start with due to aggressive manufacturing parameters. Add some pressure due to normal mechanical swell from the battery or accumulated stress through the back cover (e.g. from being sat on in a back pocket), and that pressure could be enough to squeeze the thin polymer separator to a point where the positive and negative layers can touch, causing the battery to explode.

What’s interesting is that there is evidence in the design of an intellectual tension between safety and pushing the boundaries. Samsung engineers designed out all of the margin in the thickness of the battery, which is the direction where you get the most capacity gain for each unit of volume. But, the battery also sits within a CNC-machined pocket — a costly choice likely made to protect it from being poked by other internal components. Looking at the design, Samsung engineers were clearly trying to balance the risk of a super-aggressive manufacturing process to maximize capacity, while attempting to protect it internally.

Update:  We published a  more detailed look  at our failure analysis process.

Pushing the boundaries

While we were doing the teardown, Sam wondered, “Samsung engineers are smart. Why would they design it like this?” The answer isn’t a mystery: innovation means pushing the boundaries. For something that is innovative and new, you design the best tests that you can think of, and validate that the design is okay through that testing. Battery testing takes a notoriously long time (as long as a year for certain tests), and thousands of batteries need to be tested to get significant results. It’s possible that Samsung’s innovative battery manufacturing process was changing throughout development, and that the newest versions of the batteries weren’t tested with the same rigor as the first samples.

If the Galaxy Note 7 wasn’t recalled for exploding batteries, Sam and I believe that a few years down the road these phones would be slowly pushed apart by mechanical battery swell. A smaller battery using standard manufacturing parameters would have solved the explosion issue and the swell issue. But, a smaller battery would have reduced the system’s battery life below the level of its predecessor, the Note 5, as well as its biggest competitor, the iPhone 7 Plus. Either way, it’s now clear to us that there was no competitive salvageable design.

The design and validation process for a new product is challenging for everyone. In this case, Samsung took a deliberate step towards danger, and their existing test infrastructure and design validation process failed them. They shipped a dangerous product. That this is possible at one of the top consumer electronic companies in the world is humbling — and demonstrates the need for better tools. Instrumental is building them.

Request a demo  to see how Instrumental  inspection  and  measurement  tools can streamline your issue discovery and failure analysis process.

Footnote: When batteries are charged and discharged, chemical processes cause the lithium to migrate and the battery will mechanically swell. Any battery engineer will tell you that it’s necessary to leave some percentage of ceiling above the battery, 10% is a rough rule-of-thumb, and over time the battery will expand into that space. Our two-month old unit had no ceiling: the battery and adhesive was 5.2 mm thick, resting in a 5.2 mm deep pocket. There should have been a 0.5 mm ceiling. This is what mechanical engineers call line-to-line — and since it breaks such a basic rule, it must have been intentional. It is even possible that our unit was under pressure when we opened it.

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Frontiers in Art Research , 2023, 5(11); doi: 10.25236/FAR.2023.051101 .

A Critical Case Report of Samsung Note 7 Recall

Tianlan Lan

Winchester School of Art, University of Southampton, Winchester, United Kingdom

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This article is a report of Samsung Note 7 recall in 2016. Relevant literature, annual and news reports are summarized to analyze and assess. Samsung launched the smartphone Galaxy Note 7 on 19th August 2016. However, this product suffered multiple incidents of overheating or explosions around the world due to quality problems. Before the product was removed from the market completely, it had experienced two recalls. This incident caused Samsung significant financial losses and a crisis of consumer trust. While Samsung was quickly forgiven by consumers globally, the corporation has been accused of differential treatment in China, and the resulting impact has been far-reaching. For all the smartphone industry, it is recommended that: 1. there should be a gradual shift towards an open model of innovation; 2. suppliers should be scrutinized and enhanced in design awareness; 3. a well-designed crisis management plan should be recommended; 4. should pay more attention to the Chinese market.

Samsung, Design Management, Business Strategy, Crisis Management

Cite This Paper

Tianlan Lan. A Critical Case Report of Samsung Note 7 Recall. Frontiers in Art Research (2023) Vol. 5, Issue 11: 1-8. https://doi.org/10.25236/FAR.2023.051101.

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