Samsung note 7 – Crisis Management

Hi all,

From this week’s class, we learn about the importance of public relations and crisis management. I went to find out how Samsung dealt with its recent crisis of exploding phone batteries. After 35 reports of battery explosion were reported around the world, Samsung issued a statement on Sept. 2 saying it will recall and stopped sales “because safety is an absolute priority at Samsung”. It also provided details on how the recall would work in the U.S., offering a $25 gift card or bill credit “as a gesture of appreciation.” The company that made the batteries used in the recalled Samsung devices, Samsung SDI Co., a Samsung affiliate, has yet to comment.

On the website, customers had to click a link at the top of Samsung’s home page with the not-so-urgent label “Updated Consumer Guidance for the Galaxy Note 7.” Instructions had not been posted to Samsung’s Facebook page or the Twitter account immediately.

On Twitter dated Sept. 15, it informed consumers they could exchange the old Note 7 for a new version of the phone. However, on their Facebook page, the most recent post was from Oct. 4, when it shared a photo of a YouTube star using its new virtual reality camera. That post was quickly filling up with comments about how production of the Galaxy Note 7 had been stopped.

Samsung seems to have handled the Samsung Galaxy Note 7 recall overall in a professional, stakeholder-sensitive manner. Crisis management was fast, customer-centric, reasonably well-communicated and focused on engaging the phone carriers. However, Samsung need to show that they are concerned through consistent communication on their home page, Twitter, Facebook and other social channels.

One Response

  1. mhchang November 6, 2016 at 8:58 am |

    Hi, Thanks for the sharing.:)
    I recently went to the airport and found out that due to the danger of explosion, Samsung note 7 was prohibited to be put in the luggage. It meant that Samsung note 7 was regarded as explosive. Cannot imagine how disappointing would be when their phone turned out to be a danger. However, the response was not proper as you mentioned at your post. It was insincere and even irresponsible. They were trying to make the incidents little and avoid the sever situation. I think in crisis situations, it is important to show sincere apology and take the reponsibility. Moreover, especially on crisis situations it is important to response to the stakeholders fast as they could and take actions quickly to overcome the situation.

    Reply

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