Samsung Galaxy Note 7 Case Study

Exam 1

Samsung Galaxy Note 7 Explosion Problem - Case Study

In today’s world, increasing competition and developing technology market puts the

customers into big expectations. Today’s consumers give importance to new technologies and they

tend to adapt new technologies in every area of their life such as wearable technology. With the

development of technology, communication possibilities are increasing. With the increasing

competition in the smartphone market in recent years, technology companies have been competing

fiercely. One of the most important players of this competition is undoubtedly the Samsung company.

Samsung has been competing for years with rivalries and tending to increase market share with new

technologies.

Explosive products began to

cause minor injuries on people’s body and they were exposed to fires in their homes and cars when

they charged their Galaxy Note 7. Within a short period of time, the process turned into a scandal, and

as the problem proved, national airline companies around the world announced that Galaxy Note 7

products would not be taken into the cabin.

The Samsung company has started an investigation of Note 7 due to the explosion problem

and explained that the explosion was caused by the battery. The aim for newly designed Galaxy Note

7 was to make the product lighter and increase it’s battery capacity as much as possible but this failed.

Samsung has blamed the supplier company and announced that it will work with a new supplier. In

addition, Samsung has decided to recall about 3 million Note 7 products around the world and

delivered new products to consumers. Nevertheless, the problems of explosion and warm-up started

to appear again in a short time. As a result, Samsung has collected all Note 7 products that have

suffered from the problem of product reliability worldwide. These operations are thought to be

Samsung company apologized to consumers after the scandal and they mentioned about their

expectations to increase battery capacity and satisfy the consumers with the new design of Galaxy

Note 7. Samsung blamed their suppliers for battery explosion and added to change their suppliers. Risk

analysis and risk management were the most important features that a giant company should pay

attention to, but Samsung acted as the amateur in this regard during the scandal, and it had

deficiencies in this process. In the concept of corporate governance, there are some important topics

that need to be handled by the company, such as principles, policies, procedures, responsibilities and

accountability. During this scandal, the board did not get enough action. One of the board's most

important tasks is accountability and the board should maintain sound risk management and internal

control systems. There was neglect within the company's principles and procedures. Managers and

responsible persons who did not do the job properly should be terminated at the beginning of