Samsung is currently facing a very big problem, their phone the Note 7 is exploding. This is a major problem for tech giant, as the phone industry has little room for error because of the intense competition. I have come across two of my peer’s blogs, Noah and Karen, who outline the situation very well. Who have helped me conclude how this phone crisis has caused Samsung major problems.
Samsung Logo http://www.brycomm.com/certifications/samsung-logo/
Samsung has been faced with huge losses, and the worst has only begun. Noah counters this by mentioning, similar things have happened to big companies like this in other industries, like Volkswagen. I disagree however because unlike the car market, the phone industry is much quicker and people tend to switch phones much more frequently then cars. Also, the cars have an impact on the environment, whereas these phones have had physical damage on the customers who bought them. It is upsetting that people do not care as much for the environment as they do for themselves, but in reality when someone is physically harmed by a product I am very sure that they would not go back to the same brand. This is a major issue for Samsung because they will surely lose loyal customers and new customers.
Burnt Note 7 http://www.phonearena.com/news/Six-year-old-boy-gets-burned-when-a-Samsung-Galaxy-Note-7-explodes-in-his-hand_id85305
I think that losing loyal customers in the phone industry is a huge hit against Samsung. Now, their once loyal customers, will head over to another company who they will begin to have more trust into. Karen does a great job mentioning this in her blog, that big companies such as Apple, will take this opportunity as a blessing. When a major competitor screws up as bad as Samsung does here, everyone else in that industry will jump all over the non-contracted customers trying to pull them towards their phones. She also made me think about how this is like a life-line lost for Samsung, they are walking on a thin line and one more mistake will surely cause them to fail drastically.
Samsung Stock Collapse http://bgr.com/2016/09/12/galaxy-note-7-explosions-samsung-market-cap/
All in all, it will be interesting to see how Samsung will turn this problem around. How will they recreate trust among their customers, and how will they make sure they do not do something like this again? I think it is very true that if Samsung slips up one more time the repercussions will be much more severe the second time around.
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Karen’s Blog: https://blogs.ubc.ca/ckaren/2016/10/02/samsung-galaxy-note-7-then-samsung-washing-machines/
Noah’s Blog: https://blogs.ubc.ca/noahcrumbs/2016/10/16/samsungs-gone-up-in-smoke/