samsung note 7 crises and blast reason.

2. TEAM MEMBERS:
 MOHIT KUMAR ( TEAM LEADER)
 MOHAMMAD ALI
 KHUSHAL TANEJA
 (FROM ARAVALI COLLEGE OF ENGINEERING AND
MANAGEMENT.)

3. SAMSUNG ELECTRONICS CO. LTD.
 FOUNDER:- Byung-chull lee
 Today known as Samsung group in 1938 in Taegu,
Korea.
 Samsung Electronics company , Ltd. Was founded in
1969.
 The company is structured around three business
division: (1)- consumer electronics (2)-Device
solutions (3) Information Technology and Mobile
communication.

4. INTRODUCTION OF THE CRISES
 On Aug. 2, 2016, Samsung announced its “best
smartphone so far “- Galaxy note 7. However, twenty
days later, it became “ the most dangerous smartphone
so far. “ The whole crisis lasted for 47 days, and it
caused a plummet of the Samsung market value of $ 17
Billion Personally.

5. KEY FACTS
 Galaxy Note 7 was the flagship smartphone produced
by Samsung and announced as “the best smartphone
money can buy right now”.
 The first explosion case of Note 7 was reported in
South Korea.
 Samsung Electronics started an exchange program for
Note 7’s consumers.
 Some of the replaced note 7s exploded again.
 CEO of Samsung Electronics and COO of Samsung
U.S apologized for the explosion.

6. CRISES DIVIDED IN PARTS
 LAUNCHED AND PROMOTION
 CRISES AND IGNORANCE
 APOLOGY AND ACTIONS
 PERMANENT HALT OF SALES
AND PRODUCTION

7. FIRST PERIOD:- Launched and
promotion
 On August 19, 2016 Samsung released its newest and
most innovative smart phone.:- THE GALAXY NOTE 7S
 The unveiling of the Galaxy Note 7 created headlines and
broke pre- order records.

8. SECOND PERIOD:- CRISIS AND
PROMOTION
 BAD NEWS :- Manufacturing defect causing lithium-
ion batteries to catch fire.
 On Aug ., 24 , 2016 , the first explosion case was
reported in South Korea .On the same day, a Samsung
Note 7 exploded in China.
 Feedback from the side of official :- “It is common that
burning accidents happen, and the reason is that the
user didn’t use an original charger”.
 On Aug, 31 , 2016 another post published on social
media in South Korea. However, Samsung deleted the
message and paid compensation to the user privately .

9. FIRST EXPLOSION REPORT

10. ONE MORE …….
 A -6- Year- old boy has reportedly been burnt
by an exploding Samsung galaxy note 7.
 A -6- year- old boy has been injured by an
exploding Samsung Galaxy Note 7
Smartphone, New York post reports.
 It’s just the latest episode in the colossal
fiasco that has been fiasco that has been
Samsung's latest flagship smartphone, with
the company’s stock dropping nearly 6% on
Monday.

11. Cause of explosion
 The critical component in lithium-ion
batteries is the thin separator that sits
between the two electrodes. If this
barrier breaks down or is damaged by
any outside pressure, this can trigger
excessive heat and could cause a battery
fire. Additionally , if this barrier breaks
down to the point where the two
electrodes touch, short –circuiting and
overheating will result, potentially
leading to a battery fire.

12. THIRD PERIOD:- APOLOGY AND
ACTION
 On Sept, 2, 2016 Samsung announced the
global recall 2.5 million Note 7 smartphones
and its Exchange Program for U.S.
consumers. (China was not included)
 On the same day, CEO of Samsung Electronics
apologized to the public.
 On sept 5, 2016: An explosion happened in a
hotel of Australia.
 On sept. 9, 2016 Samsung planned to stop sales
in U.S.
 On set. 16, 2016 Samsung Electronics faced the
first lawsuit regarding Note 7 in Florida.

13. THIRD PERIOD:- APOLOGY AND
ACTION
 Samsung continued the exchange program , but only
half of users returned their Note 7. Samsung fell in
bigger trouble.
 On Sept, 29. 2016 Samsung said more than 1 million
people globally now are using Note 7 with safe
batteries.
 On Oct, 6, 2016 , a southwest Airlines Plane evacuated
in the United States because of Smoke from a Note7.
Many airlines companies started to persuade or require
passengers not to bring a Note 7 board.

14. UPDATE INFORMATION
 Samsung confirmed exploding battery galaxy Note 7.
 Samsung unveiled Galaxy S8 in this spring.
 Samsung Note7 returned as refurbished smartphones
in June.
 Samsung launched Note 8 last month.

15. STRENGTH OF REPONSE
 Effective action when realizing the seriousness of the
questions. Specifically , the decision to exchange and recall
Note 7 in the beginning was good but not thorough.
 Leaders of Samsung Electronics took effective actions to
apologize to the consumers, and guaranteed to do everything
to solve this problem.
 Samsung Electronics paid for the exchange and recall
program, Financial compensation is not the best solution,
but it is important.
 Samsung did a thorough research on the explosion crisis,
found the reason and published the conclusion. Although it
was a signal that Samsung cares about the consumer’s safety.
 Samsung’s silence after halting sales and production. If
Samsung kept arguing or responding fiercely, it would lose
more.

16. DRAWBACK OF RESPONSE
 Ignorance and Delay. Samsung didn’t respond efficiently
at the beginning of the crisis, and the PR person didn’t
realize the seriousness of the problem . Therefore. I suspect
the public relations person in Samsung needed more basic
knowledge about the product and technology.
 Over-ambition . This was the biggest mistake that
Samsung made in the case. Otherwise, Samsung might
have responded to the public quicker.
 Inconsistency. In the case, Samsung promoted different
content on its social media. I think it is not wise decision to
keep advertising the product after you apologize for its
poor quality.
 Arrogance. If Samsung did more research and tests before
the launch or the first recall program, the story would be
different.

17. PERSONAL SUGGESTIONS
 Respond. No matter what kind of situation you
are facing. Please remember to respond to your
consumers. Samsung’s response was too slow and
useless.
 Test before publish, think before say. If
Samsung conducted enough tests before launch
and the recall program; if Samsung didn’t say
Note 7 was the “best smartphone ever,” halted
sales and production as soon as it knew the
problem.
 Use your social media . Samsung didn’t post
anything on Facebook and Instagram. I am not
sure if it because these social media are not so
useful, but I believe using social media efficiently
to respond and communication with consumers is
important.

18. CONCLUSION
 Instagram is not widely used in crisis communication, but
it is a common tool to promote products and brands.
 Manipulate the public by deleting posts and prohibiting
free speech will lead to a worse situation. Never ignore the
client and their feedback, and take actions as soon as
possible .
 A public relations person also needs some basic knowledge
about the technology of the product. Otherwise., you will
miss the best time to take action when a crisis happens.
 Services are more important than product itself currently.
A producer should also pay attention to after-sales services.
 Efficient communication with consumers will help a
company go through a crisis effectively.
 Appropriate compensation and apologies are necessary
when facing a crisis.