Mohan Babu is taking an MBA course and studying managerial skills. His subject focuses on the Samsung Galaxy Note 7 crisis. The Galaxy Note 7 was discontinued due to battery defects that caused some phones to overheat, catch fire, or explode. Samsung announced a recall in September 2016 and offered exchange programs, but further incidents occurred, so Samsung ultimately discontinued the Galaxy Note 7 in October 2016 for safety concerns. The crisis damaged Samsung's reputation and markets value by $17 billion.

1. NAME: MOHAN BABU
REG NO: 22
SUBJECT: MANAGERIAL SKILLS
COURSE: MBA “A”

2. SAMSUNG GALAXY
NOTE 7 CRISIS

3.  On Aug. 2, 2016, Samsung announced its Launch of
Galaxy Note 7.
 This is a discontinued android smart phone model.
 The Galaxy Note 7 is an evolution of the Galaxy Note 5
that inherited hardware components and improvements
from the Galaxy S7, including the restoration of
expandable storage and IP68 water resistance, and new
features such as a dual-sided curved display, support
for high-dynamic-range (HDR) color

4.  After the launch of Samsung galaxy note7
, twenty days later, it became “the most
dangerous smart phone launched so far.”
 The whole crisis lasted for 47 days, and it
caused a crash of the Samsung markets
value of $17 billion.
There were Battery defects (and some
user error)that caused many Note 7 units
to overheat and combust or explode.

5.  On 2 September 2016, Samsung stopped
sales of the Galaxy Note 7 and announced an
informal recall of the phones, after it was
found that a manufacturing defect in the
phones' batteries started to cause some of
them to generate excessive heat, resulting in
fires.
 CEO of Samsung (US) apologized for the
explosion.
 Samsung claimed that the batteries were the
only problem and even published research for
proof.

6.  It first exploded on 24 august 2016 in south
Korea and china (both on same day).
 Samsung did not provide any official
feedback and instead a staff quoted “ it is
common that burning incidents happen, and
the reason is not using the original charger”.
 on 30 august 2016 again a person posted on
social medial regarding the explosion for
which the company paid compensation to the
user privately.

7.  On September 2 2016 Samsung
announced the global recall of 2.5 million
note 7 smartphones and its exchange.
On sep 9 2016 Samsung decided to stop
the sales in US.
Samsung continued its exchange program
which lead to more than 1 million people
using note 7 with safe batteries by October
6, 2016.

8.  This explosions lead to the creation of
anger in the minds of the customers.
 The users of galaxy note 7 were
disappointed on the company .
 The company lost a large number or loyal
customers due to loss of trust on the
brand.

9. Samsung accepted the fault of their
batteries publicly.
They introduced exchange programs to
recall and modify / replace the batteries.
 when they noticed further explosions, On
10 October 2016, Samsung permanently
discontinued the Galaxy Note 7 due to
these repeated negative incidents and
concern for the safety of its users.

10. Google
 en.wikipedia.org
 businessinsider.com