Samsung Electronics is a multinational company that mainly deals with electronics and has the largest smartphone market share (International Data Corporation, 2017). Of all the smartphones that the company has manufactured, the Samsung Galaxy Note 7 is the only smartphone that been recalled from the market due to complains of some exploding after its launch (Dolcourt, 2016). The devices mainly exploded because the batteries were faulty making them to overheat. A lot of smartphone manufacturing companies have had issues but the fact that Samsung withdrew the device out of the market is rare. The main aim of this report is to discuss the different operational strategies, capabilities and practices that the company has adopted after the crisis. Recommendations on better ways of improving its operational performance and profitability are also given in the paper.
The company built a test lab and appointed 700 researchers who worked with 200,000 smartphones and 30,000 batteries so as to find the main cause of explosion as mentioned by (Lopez, 2017, para. 6). The researchers are required to test the entire device areas such as wireless charging, fast, normal charging as well as wired charging. The company also took the initiative to test other features like the iris scanner and USB charger, an evaluation of the algorithms and software that is connected to wireless charging is also being conducted. In order to improve the operational performance and profitability of the phone, Samsung has formed an advisory team that consists of university leaders and qualified consultants (Lopez, 2017). A quality assurance system known as 8- point battery safety system has been set up by the company. The system requires all the manufactures of any smartphone parts to follow at the planning stage. The system has; visual inspection, X-Ray tests, durability tests, disassembling tests, TVOV test, charge and discharge test and the ΔOCV test. This is to suggest that Samsung users will now get better mobile phones with a battery life that is optimized as well as software that has little bugs (Lopez, 2017).
Delegate your assignment to our experts and they will do the rest.
In order for Samsung to improve operational perfomance, competitiveness and profitability of its products, the recommendations suitable for the company include;
Conduct a marketing campaign that explains to people that the company recalled the phone and is now producing safe products
Show their stakeholders that they are putting in effort to enhance issues with the phone batteries and all the components. This can be made possible by explaining to people about their quality control processes and monitoring.
Concentrate more on creating safe products with good software which means cutting down the number of models they produce in a year
Develop a proper response framework to crisis so that they can manage future crisis. This is to avoid the same mistake of recalling a product.
Appoint one leader to be in charge of decision making. The company changed its decision making system from a centralized to decentralized one thus choosing one executive leader to act as the decision maker will help increase its perfomance.
References
Dolcourt, J. (2016). Samsung Galaxy Note 7 Recall. Here’s what happens now . Retrieved from https://www.cnet.com/au/news/samsung-galaxy-note-7-return-exchange-faq/
International Data Corporation. (2016). Smartphone Vendor Market Share, 2016 Q3. IDC. Retrieved from http://www.idc.com/promo/smartphone-market-share/vendor
Lopez, M. (2017) Samsung Explains Note 7 Battery Explosions, And Turns Crisis Into opportunity. Forbes. Retrieved from https://www.forbes.com/sites/maribellopez/2017/01/22/samsung-reveals-cause-of-note-7-issue-turns-crisis-into-opportunity/#4b8abc1f24f1
