Page 3 - Short Cases 1 Galaxy Note 7 Samsung Resurection Teaching Note

Samsung Resurrection

This case study has been developed to be distributed to

students through PC, iPad, iPhone or other mobile

devices. Its architecture is multimedia based and

designed for classroom and/or individual self-directed

learning.

Abstract

The Samsung Galaxy Note 7 was rushed, in August 2016,

to market a month ahead of the iPhone 7. Unfortunately,

it spontaneously combusted and had to suffer a recall

and ultimately Samsung ceased production of the Note 7

in October 2016. Samsung’s reputation was damaged and

customer loyalty challenged as it suffered its biggest

brand crisis. Its sales were down 15% in October 2016

and at a press conference in December it took full

responsibility for the crisis. However, Samsung began

work to rebuild its image with the new Galaxy S8 claiming

that it was the safest and most innovative phone the

company had ever built. To achieve this, it had set up a

war room to monitor media reports and consumer
sentiment online focussing on a bigger purpose that both

its employees and consumers could rally around as it
sought to break away from its fragmented brand identity

which lacked warmth and humanity and instead inspire