Andy Grove, former CEO of Intel said, “Bad companies are destroyed by a crisis, good companies survive them and great companies are improved by them. “The Galaxy note 7 recall is one of the largest in the history of Smartphone industry. This was a major setback for the smartphone giant. Estimated losses were in Billions of dollars and yet, Samsung retains the position of the world’s largest smartphone manufacturer. Every organization faces a crisis in one form or the other. But, what defines them is how well they turn such a crisis into an opportunity and lead the changes that elevate them to a higher level. Coming out of the crisis, Samsung came up with major change initiatives to boost quality and retain customer loyalty. We have used John
…show more content…
It is very important to find the right balance between them. In striving to make their product better and more appealing than their competitors, Samsung made a huge error and walked right into a crisis. Most often, such an imbalance or a shift in focus concerning an Organization’s vision will take them in the wrong direction. Since then, they have committed themselves to provide utmost priority to ensuring customer’s health and safety while coming up with innovative products of high quality. DJ Koh, President Mobile Communications Business for Samsung Electronics announced: “Technology innovation is important to Samsung, but our customer’s safety is more important. We want to reinstate trust in the brand." To create such a balance, the Global Quality Innovation Office introduced an 8-step quality assurance process5 which implements multi-layer safety measures. Samsung contributed its findings from these processes and tests to global standardization bodies. This enables other smartphone manufacturers to request the same processes on their products6. This was their intellectual property and they made these safety standards freely available. This act of goodwill was an excellent manner in communicating their vision and empowering others to act on it. Moreover, Samsung killed the Galaxy Note 7 completely and lost $2.3 billion in the process7. However, this was a wise decision as this helped them …show more content…
Then it becomes crucial that you create short-term wins. And, that is exactly what Samsung did. Samsung released its flagship phone Galaxy S8 six months into their transformation efforts. They utilized all the systems and procedures they had built to create the safest and the most innovative phone the company had ever built. This boosted the credibility of their products and improved the brand value. Below is a graph8 of how the perception of Samsung as a brand suffered because of the crisis, and how it recovered. It is evident that the company rose from the
It is very important to find the right balance between them. In striving to make their product better and more appealing than their competitors, Samsung made a huge error and walked right into a crisis. Most often, such an imbalance or a shift in focus concerning an Organization’s vision will take them in the wrong direction. Since then, they have committed themselves to provide utmost priority to ensuring customer’s health and safety while coming up with innovative products of high quality. DJ Koh, President Mobile Communications Business for Samsung Electronics announced: “Technology innovation is important to Samsung, but our customer’s safety is more important. We want to reinstate trust in the brand." To create such a balance, the Global Quality Innovation Office introduced an 8-step quality assurance process5 which implements multi-layer safety measures. Samsung contributed its findings from these processes and tests to global standardization bodies. This enables other smartphone manufacturers to request the same processes on their products6. This was their intellectual property and they made these safety standards freely available. This act of goodwill was an excellent manner in communicating their vision and empowering others to act on it. Moreover, Samsung killed the Galaxy Note 7 completely and lost $2.3 billion in the process7. However, this was a wise decision as this helped them …show more content…
Then it becomes crucial that you create short-term wins. And, that is exactly what Samsung did. Samsung released its flagship phone Galaxy S8 six months into their transformation efforts. They utilized all the systems and procedures they had built to create the safest and the most innovative phone the company had ever built. This boosted the credibility of their products and improved the brand value. Below is a graph8 of how the perception of Samsung as a brand suffered because of the crisis, and how it recovered. It is evident that the company rose from the