Cheryl Yip in her blog “The value of creating value” mentions the indispensability of relationships between a company and its customers and stakeholders.
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Samsung’s reputation in the market is not at its best. Reports suggest that Galaxy Note 7 phones caught fire and exploded due to leaky and faulty lithium batteries. The situation even worsened when passengers having the Note phones were asked to deboard their flights due to safety issues. There has been an upheaval in the financial market as share prices of Samsung have hit rock bottom. Even though the company offered $100 to the affected customers, it is not of much use as the damage has already been done. This incident has led to the decrease in trust in consumers as they now fear purchasing Samsung phones in the anticipation that they might burn and explode again suddenly.
Having understood the impact or the consequences this will have on the customer segment , Samsung’s COO Tim Baxter has made a public apology expressing his deep concern for this unprecedented issue.
As learnt in class, it is very important for a company to maintain its relationship and loyalty with its customers.In my view , if it cannot create and maintain(which is even more crucial) trust among people , it will lose its business. Why do we see Apple at a commanding position in the market or Blackberry losing dominance in the phone industry? The answer to this is that both the companies are viewed differently because of the relationship standards they maintain with their customers. In my opinion , the underlying idea is to give it all when it comes to catering consumers. There should not be any room for discrepancy or complacency when it comes to meeting requirements of the customers.
In her blog post , Cheryl discusses the key determinants which help companies achieve goals quickly. They are value propositions , customer relationships and customer segments. I second this and would like to add that if Samsung had known that such incidents would seriously impact their customer segments, they would have taken extra care and precaution even with the minutest details of their product. The customers due to this negligence have surely been affected. In my view , even if public relations of Samsung does its level best to reassure public about the safety measures it adopts, it will be tremendously difficult to capture the former market position. According to me, Samsung will have to work extra hours to establish trust back in people.
Citations
- N.p., n.d. Web. <http://www.wsj.com/articles/samsungs-reputation-takes-a-hit-as-incidents-mount-1476136987>.
- N.p., n.d. Web. <http://hosted2.ap.org/APDEFAULT/f70471f764144b2fab526d39972d37b3/Article_2016-10-11-US-TEC–Samsung-Smartphone%20Dependency/id-d5e6497b50834b7eb7901c79f174dcef>.
- N.p., n.d. Web. <http://www.inc.com/john-brandon/why-the-samsung-galaxy-note-7-exploding-battery-problem-is-deeply-troubling.html>