analysts argue that the company lacked a driving, strong to bear the cost of not postponing the decision making
In the past few years, Samsung has been trying to “humanize” its image in the united States. These efforts are seen in the way in which it presents the brand in the notices on TV and in the manner in which the company is organising a show at the launch of their products. With this policy, the Korean company had obtained advances at the time of becoming a brand more lovable man and was taking a very good 2016, with the sales of the Galaxy S6, and S7 on the rise all over the world.
But in just five weeks, since that appeared the first news at the beginning of September the batteries of Galaxy Note 7 exploding into flames, it all started to go downhill and today the brand Samsung seems to be in a worse situation than ever.
After a month of take products out of circulation, research and damage control, two weeks ago Samsung finally made the announcement shocking that it was going to discontinue permanently the Note 7. And in the midst of reports that Samsung still doesn’t really know what is the source of the problem -hundreds of engineers have been unable to reproduce the issue of the explosion of the battery, according to the newspaper the New York Times-, it seems clear that his handling of the crisis has been bad due to a failure of leadership.
Shortly after that appeared the reports, with 35 cases of phones exploded, Samsung announced that it was stopping production of the devices and began an “exchange program” to remove the phone defective out of the hands of consumers. Then a lightning strike on September 23, when users began to report that even the new phones that Samsung was distributing through the telephone companies were exploiting. On the 5th of October, a Note 7 replacement caught fire in the pocket of a man in a plane before take-off. Another Note 7 burned the hand of a girl from Minnesota. Then there was an explosion in Kentucky. And later, a new one in Virginia.
As the analyst of the consulting firm Above Avalon’s Neil Cybart, the Note 7 is not only re-heated and melted, but they also exploded like bombs. Were burning down entire rooms.
And it was when they began to blow up the phones of the spare things were ugly for the Note 7 and Samsung. Until then, consumers had a certain level of good will. The vast majority of owners of Note 7 that returned their phones requested other Note 7 instead of switching to another brand, as they are quick to point out Samsung.
people kept wondering why Samsung has not pulled the devices from the market to fix the problem once. In exchange, the company rushed to deliver new devices to consumers. When the replacement began to explode also, Samsung is not immediately stopped production, but continued inviting owners of Note 7 to come to pick one of the replacement devices that were supposedly safe.
The president of the consulting firm Technalysis Bob O’donnell, points out that there are precedents of take out of circulation technology products, but states that the Samsung is something new. “What other companies have done and always gave them the benefit of the doubt. Always we assumed that the seller would fix the problem and all would be well. Well, this time all is not well.”
The case of the Note 7 is something truly great. It is the first that I know of that is making advertisements at the airports that will not be allowed to climb the aircraft with them if they are not switched off completely. All of these public announcements were as notices negative and listened to hundreds of thousands of people.
Then what happened? How could it be that an electronics giant with decades of experience to take a product so failed to market? Samsung pulled out of trouble the device to the market looking ahead to the release of the iPhone on the 7th of September, as reported by the agencyBloomberg, and several sources gave similar versions. “Samsung has not made the kind of control and the quality testing needed to ensure that the Galaxy Note 7 was appropriately designed and safe”, says the president of the agency Creative Strategies, Tim Bajarin.
“This will have a negative impact on your brand and puts in question its ability to create a smartphone of high range that is safe,” says Bajarin. “The economic impact will be between 10,000 and 14,000 millions of dollars, and unless handled properly, could have a serious effect for the whole brand for a while.”
once you pass the debacle of the Note 7, so it will have to be attentive to is the damage to the brand. The phones will come and go. The gains will come and go. But the loss of credibility is something painful that lasts.
From the beginning, Samsung should have been more honest. Was supposed to call things by their name: the removal of a product from the market. In contrast, he said that it was an “exchange program”. I gave this to as a neutral tone, harmless, as a program to get rid of undesirable gifts at Macy s after Christmas.
two weeks Ago, when it was already known the news that Samsung had stopped the production of the Note 7 (temporarily), the company issued a statement in which he said that he had “changed his schedule of production”. This type of language camouflaged gives the impression that the whole affair has more to do with advertising and the stock price with real needs -even the safety – of the client.
Personally, I was willing to forgive the errors of public relations of Samsung until replacement phones began to blow up. I believed in the theory that the battery problems could be attributed to a supplier, and soon settle matters. That turned out not to be true. It is still not clear exactly why they broke out the batteries of the Note 7, and Samsung is not offering too much data.
“From questionable actions in respect of the replacement units of the Note 7 to not establish a channel of communication open for customers, Samsung has allowed this situation to deteriorate in the last three weeks,” said Cybart, Above Avalon.
William Stofega, of IDC consulting, points out that the Galaxy Note accounts for about 10% of the total sales of phones from Samsung and that half of those customers can be redirected to Apple.
Cybart says that the poor handling of the situation in the Note 7 on the part of Samsung can be attributed to the driving entrepreneur. “No matter what the root of the matter, the only way that Samsung could learn from this experience is that strong leaders to solve the limitations of the culture and internal processes,” he says. “Without leadership , Samsung runs the risk that this crisis begins to impact other parts of your business, hurting your long-term relationship with the public in general.”
Translation Gabriel Zadunaisky
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