Samsung is the world’s leading Smartphone manufacturing and consumer electronics South Korean multinational company. The defective battery crisis event of the Samsung Note 7 negatively impacted the company’s reputation and brought a lot of negative media publicity. Today, we’ll discuss Samsung crisis management; crisis events; media coverage, and the strategic approach of the company to deal with the crises.
Crisis Event to Samsung
There were many reports and incidents of Samsung Note 7 smartphones smashing and catching fire due to defective and faulty batteries in September 2016. It raised serious concerns and questions about the safety and security measures and protocols of the company towards the general public.
After receiving the incidents and reports, Samsung launched a massive product recall and showed its strong commitment to the safety of people and resolving the crisis event. The company conducted an investigation and found the cause of the battery malfunctioning problem to the production and malfunction defect. However, Samsung started collaborating with various partners to improve and facilitate the product recall process; and gave customers product refund, replace, and exchange options.
Media Coverage
The Samsung Note 7 defective battery issue attracted significant media attention and negatively impacted the brand value. Some of the key elements of media coverage and their impact on the public perception are as follows;
- Multiple media outlets; newspapers and news channels started reporting the defective problem incident and the company’s massive product recall program
- Social media platforms and user-generated content brought a lot of criticism to the company for the defective product
- Tech and manufacturing experts started sharing their professional insight on the battery problem and it played a key role in changing the public perception
- Online discussion boards and forums started discussing the impacts, public frustration, and warning others about the potential risks
Strategic Approach to Samsung Crisis Management
Let’s discuss the main strategic approaches of Samsung crisis management and Samsung crisis communication strategy to deal with the problem; they’re as follows;
Product Recall
When the reports of defective batteries broke out, Samsung launched a massive product recall of the Note 7 Model. It showed the company’s strong commitment to the public and customers’ safety and the consumer electronics brand is willing to accept the responsibility of its defective products.
Stopping Manufacturing Process
Samsung immediately stopped the production and manufacturing of the Note 7 Model to find out the exact root cause of the problem. The other goal was to stop the further distribution of the defective products and the brand conducted a thorough investigation and took precautionary measures.
Open & Honest Communication
Samsung followed the open, honest, and transparent communication strategic approach. The consumer electronics brand acknowledged the defective problem in the press release and issued an official public apology to the customer market. However, the company showed its strong commitment to resolving the problem and ensuring the safety of ordinary customers. It allowed the company to earn the trust and confidence of customers with an open and transparent communication approach.
Coordinating with Regulatory Authority
Samsung started coordinating and collaborating with the regulatory authority to investigate the cause of the battery problem and issue. Connecting and engaging with the external department allowed the company to recognize the problem and develop a comprehensive solution dealing with it. Most importantly, the collaborative approach allowed the company to find the best possible solution.
Safety Guidelines and Customer Support
Samsung offered clear safety guidelines to the customers on how to use the Note 7 Model device effectively without any damage. Most importantly, the company encouraged its users to recall the product and to equip with additional safety and security measures and protocols. This strategic approach allowed the consumer electronics brand to avoid any further accidents from happening.
Implementing Safety Measures
In order to stop any type of accidents, Samsung introduced a battery testing method and improved the safety protocols. The company followed the quick quality control process along with earning safety certifications and testing protocols to ensure a high level of product safety.
Advertising & Marketing Campaigns
In order to rebuild the trust and confidence of customers, Samsung introduced marketing and advertisement campaigns to show and prove its commitment to safety and quality. The advertisement campaign highlighted the thorough testing and implementing the quality control measures to ensure the safety of the product and the customers.
Leadership Apology
The CEO of Samsung issued a personal apology to the customers and took full responsibility for the incidents and damages caused to the customers. It showed the company’s empathic attitude and their commitment to resolving the problem with full responsibility and accountability. However, they published the apology in the New York Times, Washington Post, and Wall Street Journal.
Conclusion: Strategic Crisis Management Case Study | Samsung Crisis Communication
After an in-depth study of Samsung crisis management; we have realized that Samsung is the world’s leading consumer electronics manufacturing brand. If you’re learning about Samsung crisis communication strategy; then you should keep in mind the abovementioned crisis event, media impact, and strategic approach of the brand to deal with the crisis.
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