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Samsung Galaxy Note 7 - Case Study

Date post: 23-Jan-2018
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THE NEXT BIG THING IS HERE
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Page 1: Samsung Galaxy Note 7 - Case Study

THE NEXT BIG THING IS HERE

Page 2: Samsung Galaxy Note 7 - Case Study

ABOUT

Page 3: Samsung Galaxy Note 7 - Case Study

ABOUT

Page 4: Samsung Galaxy Note 7 - Case Study

VISION

“Inspire the World, Create the Future”.

OBJECTIVES

Samsung's objectives is to sell quality products to customers interested in

purchasing mobile devices. Samsung offers mobile devices and cell phone accessories.

Page 5: Samsung Galaxy Note 7 - Case Study

MANAGEMENT IDEOLOGY

Leverage Human Resources and Technologies

Create the Best Products and Services

Contribute to Society

Page 6: Samsung Galaxy Note 7 - Case Study

BUSINESS PRINCIPLE

We comply with laws and ethical standards.

We maintain a clean organizational culture.

We respect customers, shareholders and employees.

We care for the environment, safety and health.

We are a socially responsible corporate citizen.

Page 7: Samsung Galaxy Note 7 - Case Study

SAMSUNG BRAND VALUE

Samsung ranked 6th among global companies

Source : Interbrand(Best Global Brands 2017)

Page 8: Samsung Galaxy Note 7 - Case Study

FINANCIAL HIGHLIGHTS

Page 9: Samsung Galaxy Note 7 - Case Study

CASE

Samsung Galaxy Note 7 is a discontinued Android phablet smartphone that was produced and

marketed by Samsung Electronics.

On 2nd September 2016, Samsung suspended sales of the Galaxy Note 7 and announced a

voluntary recall after it was found that a manufacturing defect in the phones batteries had

caused some of them to generate excessive heat, resulting in fires and explosions. A formal

U.S. recall was announced on 15 September 2016.

Page 10: Samsung Galaxy Note 7 - Case Study

Samsung exchanged the affected phones for a new revision, which utilized batteries sourced

from a different supplier. However, in early October 2016, reports emerged of incidents where

these replacement phones also caught on fire.

On 10 October 2016, in response to the new incidents, Samsung announced that it would

once again suspend sales of the Galaxy Note 7 and recall all devices worldwide.

Page 11: Samsung Galaxy Note 7 - Case Study

The next day, Samsung also announced that it would permanently discontinue the Galaxy

Note 7 and cease its production.

The recall had a major impact on Samsung's business in the third quarter of 2016, with the

company projecting that its operating profits would be down by 33% in comparison to the

previous quarter.

Credit Suisse analysts estimated that Samsung would lose at least US$17 billion in revenue

from the production and recall of the Galaxy Note 7.

Page 12: Samsung Galaxy Note 7 - Case Study

LEADERSHIP

Key people

Chairman - Lee Kun-hee

Vice chairman - Lee Jae-yong

CEO - Kwon Oh-hyun

Type

The Leadership type which is followed by the Samsung is AUTOCRATIC. Because the Samsung

not giving much importance to its architecture. So, the Note 7 problem spoiled the image of the

Company. The Company always want to Compete and want to be Market Leader but they are not

working in effective Manner.

Page 13: Samsung Galaxy Note 7 - Case Study

SAMSUNG ELECTRONICS - PRODUCTS

LCD and LED panels

Mobiles & Tabs

Semiconductors

Televisions

Printers

Digital Camera’s

Laptops

Mp3 Players

Refrigerator

Washing Machine

Samsung Group has large number of Products and Services.

Page 14: Samsung Galaxy Note 7 - Case Study

ELECTRONICS

Samsung Electronics

Samsung SDI

Samsung Electro-Mechanics

Samsung SDS

Samsung Display

Samsung Corning Advanced Glass

Samsung C&T Engineering & Construction Group

Samsung Heavy Industries

Samsung Engineering

HEAVY INDUSTRIES

Page 15: Samsung Galaxy Note 7 - Case Study

FINANCIAL SERVICES

Samsung Life Insurance

Samsung Fire & Marine Insurance

Samsung Card

Samsung Securities

Samsung Asset Management

Samsung Venture Investment

Page 16: Samsung Galaxy Note 7 - Case Study

Samsung C&T Trading & Investment Group

Samsung C&T Fashion Group

Samsung C&T Resort & Construction

Group

Hotel Shilla

Cheil Worldwide

S-1 Corporation

Samsung Medical Centre

Samsung Economic Research Institute

Samsung Biologics

Samsung Bioepis

Samsung Welstory

OTHER AFFILIATED COMPANIES

Page 17: Samsung Galaxy Note 7 - Case Study

COMPETITORS

Apple

Sony

LG

Lenovo

Xiaomi

HTC

Huawei

Asus

Page 18: Samsung Galaxy Note 7 - Case Study

STRENGTH

Samsung is the world’s most successful electronics manufacturer. It is the world’s largest

manufacturer of television sets, liquid crystal display (LCD) panels, mobile phones and

smartphones.

Samsung is the world’s number one marketer of mobile phones with 21.4% of the world’s

largest market share in the second quarter of 2015. Apple is number two with 13.9%

Page 19: Samsung Galaxy Note 7 - Case Study

STRENGTH

Samsung has impressive research and design capabilities. It was able to create and roll out

Samsung Pay, a payment app with similar capabilities to Apple Pay, in less than a year. Samsung

has been able to replicate many of the capabilities of both Apple Inc.’s phones and Google Inc.’s

Android operating system for mobile devices.

Samsung has strong manufacturing and marketing capabilities.

Samsung has long-standing relationships with retailers in the United States and Europe that

provide a steady sales channel for its products.

Page 20: Samsung Galaxy Note 7 - Case Study

WEAKNESS

Samsung has not been able to match Apple Inc.’s marketing capabilities for smartphones. Its

share of the U.S. smartphone market fell by 2.3% between 2014 and 2015. In contrast, Apple’s

share price grew by 34.9%.

Some Chinese competitors are catching up to Samsung in the smartphone market. Between

2014 and 2015 Huawei’s share grew by 48.1%, and Xiaomi’s share grew by 29.4%.

Samsung is heavily dependent upon consumer electronics sales in markets with limited

potential for growth, such as the United States and Europe, for much of its revenue.

Page 21: Samsung Galaxy Note 7 - Case Study

WEAKNESS

Samsung’s devices use the Google Android open source operating system. Many consumers

seem to view Android as an inferior product to Apple’s iOS. The public has not been as

accepting of Android as the tech community has.

Some consumers view Apple products as more advanced and dependable than Samsung

products.

Samsung’s marketing efforts are not as sophisticated as Apple’s.

Page 22: Samsung Galaxy Note 7 - Case Study

OPPORTUNITES

Growing market for smartphones, tablets and other mobile devices, especially in

developing regions such as Africa and India, where consumers are unfamiliar with PCs. Sales

of tablets finally overtook sales of traditional personal computers in 2015.

Increased demand for tablet and smartphone-based solutions such as Samsung Pay

New technologies such as wearable tech

Growing middle class in developing world will increase market for consumer electronics.

Growing online market from sales channels such as Amazon.com

Page 23: Samsung Galaxy Note 7 - Case Study

THREATS

Apple has emerged as the dominant smartphone and tablet brand in some markets, such

as the United States. Samsung has not been able to overcome Apple’s reputation for

reliability.

Apple’s reputation for quality, reliability and sophistication seems to be growing.

The Google Android operating system, which Galaxy devices depend upon, is not as

popular with average people as iOS.

Page 24: Samsung Galaxy Note 7 - Case Study

THREATS

Declining or stagnating middle-class incomes in North America and the United States

could reduce consumer buying power in those key markets for Samsung.

Chinese manufacturers such as Huawei and Xiaomi could emerge as serious rivals to

Samsung. These companies’ share of the critical mobile device market is growing while

Samsung’s is falling.

Apple could enter more consumer products areas such as home appliances and cameras

and directly compete with Samsung in those markets.

Page 25: Samsung Galaxy Note 7 - Case Study

Thank you !“Try not to become a man of success, but

rather try to become a man of value.”

- Alber t Einstein


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