This blog is based on the external blog Why Samsung’s Note 7 Crisis Won’t Hurt Its Brand Long Term by Utpal M. Dholakia. Basically, I agree with the writer on the following points.

Firstly, it is the allegiance of current customers that rescue Samsung from this imbroglio. For a long time, Samsung acknowledges the Points of Parity against Apple and is committed to offer same advanced designs. Meanwhile, Samsung emphasizes its Points of Difference that it could provide users with affordable price, more flexibility over control system. As a result, Samsung has cultivated a large cluster of loyal customers, for whom the PoDs and PoPs of Samsung made it irreplaceable. That`s why the customers are willing to accept the product again under the duress of explosion.

Secondly, I concurred with author that the national pride accelerate the recovery of Samsung from the scandal. It is astonishing that an estimated 20% of South Korea economy is composed of Samsung. Rather than an electronics manufacturer, Samsung is a conglomerate which integrates many subsidiaries and affiliated businesses including heavy industry, engineering, insurance etc. These industries support many families in South Korea and represent South Korea in the world. That`s why citizens have inclination to forgive the fault and trust their company again. Besides, the diversification make Samsung adamant during the scandal.

However, the future of Samsung is not as positive as what the author asserts in the article. Since Samsung is facing the headwind of new entrants in smartphone market, according to Statista, in the past 3 years, its market share plummet from 31.9% to 22%. Another crux is in the supply power of Samsung. According to its financial report, Samsung tends to scale down semiconductor product line owing to the decrease of chips` selling price and buyer volume, which may further enervates Samsung`s comparatively advantages in supply chain. Also, the crisis of buyer power may be intensified due to Note 7 fiasco. As more inexpensive products enter the market, consumers acquire abundant choices and bargaining leverage. In upscale market, Samsung can`t surpass apple in its brand value and IOS system. In middle and low end market, Samsung`s living space is being squeezed by the its competitor`s low price strategy. As a result, Samsung`s brand differentiate become more and more ambiguous. To make things worse, the fiasco now break the balance in the market. And this change seems hard to be reversed.

As far as I am concerned, the fiasco of Note 7 would actually negatively impact the future running of Samsung Electronics, and maybe the turning point of Samsung Electronics from prosperity to decline.

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reference

Samsung operating profit plunges 30% in wake of Note 7 fiasco. (2016, October 27). BBC NEWS. Retrieved October 31, 2016, from http://www.bbc.com/news/business-37784079

Team, T. (2015, February 11). Trends That Will Drive Samsung’s Semiconductor Business In 2015. Forbes. Retrieved October 31, 2016, from http://www.forbes.com/sites/greatspeculations/2015/02/11/trends-that-will-drive-samsungs-semiconductor-business-in-2015/#7b86825376d8

On September 29, 2016, Cantonese Congress promulgated a new regulation that it will extend  the maternity leave from 50 days to 128 days, which rapidly becomes the most contentious topic in China.

On one hand, it is considered as an auspicious opportunity to working women, for it provides ample time for them to recover from  parturition without worrying about being fired. On the other hand, the new regulation sparks consternation among single young girls, most of whom are seeking for jobs. From their standpoints, it will cause discrimination towards female, for the law only adjusts the childbirth  leave of mother and neglects the father`s duties. Furthermore, the new rule may reinforce the stereotype that women, instead of men, should be amenable to parenting their children. In fact, men should take the corresponding responsibilities for family. As a result, it amplifies the current chasm between man and woman in job markets.

In respect of business ethics, it is vital for a company to balance maternity leave and the development of a company due to the raising proportion of women in job market. Chen Xiaoxian, president of Beijing branch of CITIC Bank, recently claimed that he would only provide 110 days` leave for the first born baby and 60 days for the second, which was regarded as a breach towards woman’s rights. From another perspective, it was a surrender to rapid economy development. Without the government regulations and appropriated laws to uphold the priority of women, same things also happen in other corporations in China which are inclined to avoid hiring non-pregnant women, for they can`t suffer the loss from the vacancy of workforce. This has prompted me with UK`s new rules that “allow UK parents to share leave following the birth or adoption of their child have come into effect”, which may buffer the negative impacts of discrimination resulted from the maternity leave. Maybe in this case, government plays an essential role in business ethics.

According to Jialin Xu`s blogs, upholding the equal rights of man and woman “may improve not only the brand’s business ethics, but additionally allows them to claim a unique position [in] the mind of the customer in their consumer’s perspective as a product that best empathizes with the struggles of the working woman. “I basically concur with her in this point. However, we can`t overlook actual loss undertaken by businesses. In my point of view, enterprises should ameliorate their operations by rewarding those with aptitudes to take extra responsibilities or spreading the work to more branches, etc.

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Reference

How the UK’s new rules on parental leave work – BBC News

http://www.bbc.com/news/business-32130481

China Briefing News China Regulatory Brief Adjusted Maternity Leave in Guangdong and Cancelled Consumer Tax for Cosmetic Products Comments

http://www.china-briefing.com/news/2016/10/10/china-regulatory-brief-8.html

Jialin Karen Xus Blog

https://blogs.ubc.ca/jlinxu/2016/10/16/16/

Tencent, China’s biggest online entertainment and social network company, has reported a 47% jump in second-quarter profits. Wechat, akin to WhatsApp, has superseded all its counterparts and dominated China messaging markets by 2016. By the reckoning of HSBC, a bank, according to current valuations for tech firms, WeChat could be worth over $80 billion already, which is totally beyond analysis`s expectations. From the standpoints of value proposition, I think that the reasons are as follows.

As a pioneers that introduces messaging app into China, Tencent has garnered enormous success from its precedent product QQ. While QQ`s targeted consumers group is Chinese teenagers, WeChat has proven to have more concise interface and omit unnecessary flashy functions, which are more accessible for middle-aged users in China who cannot master the operation of electronic device well. In a society that value time, Wechat also thrives with its integration of a wide spectrum of online services including video chatting, ride sharing services, online shopping, food deliveries etc. For it is always difficult for most people to memorize their accounts and password separately for each app that may require different forms, WeChat perfectly avoid this awkward situation.

Nowadays, the public suspects increasing important issues relating to cybercrime, malware and privacy. By persuading users to link their ID and bank accounts to their app, WeChat provides customers with reassurance that they will be safe using it. Another notable strength of Wechat is that it provides theirs users with platforms to engage in competition ranging from running distance, red bag campaign to games scores ranking. For example, the person who run the longest distance would be on the top of ranking board and receive others` compliments, which counters the individual`s desire for recognition in today stressful world.

Most importantly, all these functions above are free for customers to adopt, because the revenue source of its company is mainly from its online games and e-commerce. In June, Tencent, the company of WeChat, launched a mobile game named Miracle Nikki in Korea market, which at once topped the mobile game ranking. Same thing also happened in its launch in Japanese Market last year. This game requires a WeChat account to play and generates huge capital for the company. WeChat also acts as a platform for the connection of vendors and consumers, the low operational cost of not paying license, concise interface requiring less technical operation gives WeChat the comparative advantage over other online shopping websites.

By solving targeted customers` problems, providing them with enjoyment and differentiating itself from competitors, WeChat has occupied a conspicuous proportion in today`s China messaging market. And I believe it will achieve greater success as long as it runs on the right track basing on the value proposition.

Word-count:446

Reference:

http://www.economist.com/news/business/21703428-chinas-wechat-shows-way-social-medias-future-wechats-world

http://www.bbc.com/news/business-37094256

http://dealbook.nytimes.com/2014/03/20/wechat-valuation-is-still-just-a-hunch/