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Introduction: –  Samsung is one of the main innovation monsters
around the world including various business divisions like gadgets,
development, life insurance, and so forth in its portfolio. With its
headquarters in Seoul, Samsung Electronics, one the different associates of
Samsung group have possessed the capacity to hold most noteworthy piece of the
overall industry (21% – 23%) in cell phone business in the past couple years,
beating its significant rival Apple by a tremendous edge of around 9% (International
Data Corporation, 2016). On nineteenth August, 2016, Samsung discharged its
most recent cell phone display named Samsung Galaxy Note 7. Thinking about the
accomplishment of its past adaptations, note 7 should be a noteworthy rivalry
for its opponent iPhone. Lamentably, inside 2 months of its discharge, Samsung
needed to end its assembling in October 2016 because of some quality issues
with its battery, as there were many cases revealed where the battery all of a
sudden burst into flames.


Problem recognition: – the
note 7 was a good way for Samsung to boost the sales but instead the note 7
turned out to be the biggest flop for Samsung. The note 7 caused a lot of
issues for the public as well as the company as the phone’s battery had a
manufacturing defect and people worldwide wanted their money back as the phone was
causing issues and that caused the company a lot of loss. In the 2-3 month, the
company had to stop the manufacturing of the note 7. As the assembling of the
note 7 stopped Google and Apple launched their new phone which boosted their
sales as one of the major competitor was out from the market and people started
having trust issues from company. After the note 7 running on fumes the company
decided to recall all the note 7’s which caused the company millions of
dollars. After the main blast reports, Samsung engineers inferred that the
imperfection had be caused by defective batteries from at least one of the
company suppliers. All the more particularly, the company trusted that these terrible
batteries had been designed by its own particular Samsung SDI division, and
that it is protected to utilize batteries from its alternative supplier Amperex
Technology Ltd (ATL). The Samsung SDI composed batteries, which were produced
in Vietnam and South Korea, were said to suffer from a manufacturing fault that
could prompt a short circuit inside the cell. On the off chance that even a
little short happens inside a lithium-particle battery, thermal runaway can
make the cell keep on heating up, in the long run prompting a fire or blast (0).
Samsung evaluated that one in each 42,000 handsets experienced the
manufacturing defect. The main worldwide review was started to replace 2.5
million handsets furnished with conceivably flawed batteries with recently made
handsets with ATL cells. Lamentably, this review hasn’t halted reports of
detonating handsets coming in, prompting a full stop on Galaxy Note 7
production. The company Focuses to comparable assembling surrenders with the
ATL batteries, which should be sheltered. The issue clearly crawled into the
supply line after Samsung started supplanting the Note 7, yet it’s obscure what
number of gadgets are influenced. Subsequently, Samsung is reviewing the
190,984 Note 7s that it sold in China too. The main reason for the Samsung
galaxy note 7 to burst was there was not enough space for the battery which
lead to burst the battery. In scientific words the battery may have been
exacerbated by an inadequate layer of protection between the positive and
negative sides of the battery, which may break or cut under the extra weight. One
of the main reason for the battery to burst was fast charging. As in today’s
world people want fast charging and to fulfil that Samsung made adjustments in
the processer in order to speed up the charging. Samsung wanted note 7 to be
their icon phone but instead it turned out to be disaster as Samsung wanted the
fast charging feature in it so they had to cut the size of the battery and due
to that the space was very less for the battery and too much pressure started
to build up and fire or burst took place in the phone.

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Analysis: – in
this case the Samsung has messed up pretty badly as they wanted to be the note
7 their icon phone but turned out to be the flop phone. The Samsung wanted to
change the phone’s they wanted something new to happen but due to manufacturing
defect the company had a severe loss they had to stop the manufacturing on the
note 7 as the phones were causing problem, the phone had a defect, they were no
having enough space for the battery and the battery for pf lithium and lithium
batteries had been the worst batteries as the Nokia, Sony and many more companies
used the same batteries and had problems. At the end, the company had to take
all the phone back and the phone was later banned to be carried on an


What really happened? – Samsung
engineers hurried to decide the reason for the issue, working through the
Harvest Festival occasion a week ago. The company’s most total clarifications
so far have come in reports to government offices in Korea, China and the U.S.
The underlying conclusions showed a blunder underway that put weight on plates
inside the battery cells. That thus brought negative and positive posts into
contact, activating over the top warmth that made the battery burst. The
executive of the U.S. Shopper Product Safety Commission was more express when
his office declared an official review on Thursday. He said the telephone’s
battery was somewhat too enormous for its compartment and the tight space
squeezed the battery, causing a short out.


Samsung’s next step: –  The quick following stage
for the organization is getting its demonstration all together before the
normal dispatch of the Samsung Galaxy S8, its next mass-showcase gadget, in


need to persuade individuals this is a telephone that they need and a telephone
that they trust,” Fried said. “That second part will be especially
intense for them. They likewise owe people in general a clarification of what
truly went wrong, particularly with the substitution models.” Samsung’s
next step will to gain the trust back of the people who used to use Samsung but
shifted to other companies. The company will now focus on their next mobile
phone launches galaxy S8 and Note 8 which will have major changes so people
will start using Samsung once again. The company will now try to avoid such
error with their new launches. Samsung now has implemented a new battery
testing protocol making sure that this won’t happen again, now they’re trying
to give more space to battery so that it won’t explode. Samsung is now trying
to make their new phone unquestionable as they have hired more skill workers
and are now reviewing he process with other firms to avoid the mistake (02).


Effect on Samsung: – Note
7 was its new lead gadget. For Samsung, 2016 began on an awesome note on
account of its S7 and S7 Edge, which did and helped the company’s versatile
division report enormous benefits. The Note 7 should support the greater part
of this and Samsung was relied upon to offer 14 million, of these gadgets. With
reports of the flames in replacement phones and news of generation stopping,
Samsung’s stock has gotten hammered in the market. The company has lost about
$17 billion in piece of the overall industry since the substitution Galaxy Note
7s began bursting. Presently Samsung has cut benefit gauges for its second from
last quarter by 2.6 trillion won or about $2.3 billion. So yes, for Samsung,
the Note 7 was an imperative telephone, one that would have helped it proceed
with its benefits in the vital occasion quarter. With Google propelling its own
top-notch Pixel and Pixel XL and Apple’s iPhone 7 or more now out, Samsung has
lost control of the pivotal premium portion of Smartphone. For the present,
Samsung is working with the US Consumer Product Safety Commission (CPSC),
requesting that all clients shut down their telephones and return them.


Effect on stakeholders: – there
are many stakeholders in Note 7 crisis they are.

1.   Consumers:
– the effect on public was very drastic as the owners of the Note 7 suffered a
huge loss as the owners of note 7 were in danger as the battery could have
caught fire anytime and the money was wasted on the note 7 as very late the
company recalled the phones. The owners of Samsung galaxy note 7 were in a very
dangerous situation as one of owners of Note 7 car caught fire while the phone
was charging (03). The Samsung galaxy note 7 has effected the public a lot as
one of the man was burned due to Samsung’s galaxy note 7 (04).

2.   Suppliers:
– after the Samsung galaxy note 7 crisis the Samsung had already been thinking
get their supplies from elsewhere 

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