Bài kiểm tra giữa kỳ

MINISTER OF FINANCE
UNIVERSITY OF FINANCE – MARKETING
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INTERNATIONAL MARKETING
Class code: 222172031203
MID-TERM EXAM

CASE STUDY
SAMSUNG: OVERCOMING STRATEGIC,
TACTICAL, AND OPERATIONAL CHALLENGES

Lecturer: Ngô Minh Trang
Class: CLC_20DMA03
Name: Nguyễn Ngọc Trâm Anh
ID: 2021006480

TP.HCM, 2022


Samsung: Overcoming Strategic, Tactical, and Operational
Challenges
Abstract of the case study:
On the second of September 2016, Samsung stopped the sales of Galaxy Note 7 after
the product designing team found a problem in the product which could cause the LiIon batteries to explode. After investigating the reason for the fire, it turned out that
the battery of the brand-new Note 7 had heated up and exploded. After two weeks
from the launch of the phone, the Consumer Product Safety Commission in the U.S.
announced the recall of all the Note 7 phones in the U.S where Samsung had to
change the defective phones’ batteries from a different supplier. After a month, there
was another accident that was relevant to the Galaxy Note 7 issues. After all, Samsung
had to recall a total of 2.5 million Note 7 phones from all around the world.

1. Using a SWOT analysis, what strategic issues did Samsung’s management
team face during the product recall crisis period?
Based on the information mentioned about the media crisis of Samsung Galaxy Note 7
products in the article, I will analyze the SWOT of this entrepreneur at that time.
● Strengths
- As of 2016, Samsung has been in the industry for more than 80 years and has a
plentiful experience in building and developing the brand’s fame. They are
always pioneering innovation to bring the most convenient user experiences,
Samsung won many prestigious awards and keep the trust from a large number
of users for its products and services.
- Brand: After intense focus and continuous innovation, the brand becomes a
significant strength for Samsung as the company strives to build a strong image
in the electrical industry about smartphones and consumer electronics.
- Market position: In 2006 after many years in the industry, Samsung gained the
leading position in the global market for electric equipment and Samsung has
always placed great determination in the production and business process.
business until now.
- Diversity: According to statistics, in 2016 Samsung launched up to 31
smartphones with many types of different phone lines with many new
innovative features including the phone that brings much loss for Samsung is
the Galaxy Note 7.
● Weaknesses
- R&D activities: It can be said that as a long-time business in the industry,
Samsung always launches prestigious quality products. However, the Galaxy
Note 7 series destroyed the efforts Samsung had built at the time. A series of


crises that brought many disadvantages to Samsung broke out, partly because
research and development activities for this product line were not really
intensive and effective.

- Forecasting future events: For this crisis to happen, it can be seen that
Samsung's managers failed to anticipate the risks related to customers’ safety.
● Opportunities
- If Samsung can successfully handle this media crisis perfectly and completely,
Samsung's brand position in the eyes of consumers will increase. Besides,
Samsung will also show its professional and agile style, thereby creating more
belief in the quality of customer care.
- Perhaps after this crisis, Samsung will have the opportunity to draw extremely
deep lessons from which they can consider their decisions carefully to avoid
absolutely making the second mistake.
● Threats
- Samsung became the target of a media attack that led to a serious collapse and
was on the verge of losing all customer loyalty.
- There is a huge risk of losing market share to competitors.
Following the above mentioned SWOT analysis of Samsung during the crisis period,
there are some strategic issues that Samsung’s management team face during the
product recall crisis period.
First of all, the most serious consequence of a full product recall is that it affects
Samsung's high-quality brand strategy. Over several decades, Samsung has gradually
asserted its strength and strong potential in business endeavors far beyond many other
competitors in the electronics industry. Managers were faced with the collapse of the
brand reputation that the business had pursued. Besides, the sales growth strategy was
also severely affected. Not only can't increase revenue effectively, but also lose a huge
amount of budget in product recalls and have to spend a lot of money to deal with
related problems. After the product recall crisis, businesses can carefully consider
implementing alternative strategies to gradually recover their business status and set
new long-term goals.
2. Using a SWOT analysis, what tactical issues did Samsung’s marketing team
face during the product recall crisis period?
Based on the SWOT analysis analyzed above, there are some tactical issues

Samsung's marketing team face during the product recall crisis period.
In the early stages of the recall, Samsung's marketing team faced a series of pressing
problems. First of all, this is the golden period for businesses to appease the public
and their customers based on the severity of the situation after conducting an overview
on many aspects from customers, from suppliers, and also the mass media. Judging


from the internal environment of the business, the marketing team must coordinate
with other departments in the business to make an assessment from the cause of this
unfortunate incident. At the same time, the marketing team must constantly post news
to reassure the public and minimize the negative trends that can be created by
competitors. In addition, always post necessary information about the phone recall
process on social networking sites so that customers can update the news in the best
way and ensure their interests. Finally, the most important thing that the Marketing
team needs to do is to give instructions on how to use the phone properly to avoid
damaging the phone battery and to maintain the life of the smartphone in general.
3. Beyond a reliance on diversification (numerous products and product lines),
what strategic responses would you recommend for Samsung going forward?
Currently, Samsung has done very well in the strategy of diversifying products from
many types of models to many separate lines for a specific product. I think that from
the lessons of the past, Samsung can invest in more product research and development
strategy and more carefully. Although Samsung has a wide variety of products, they
also need to pay attention to improving quality and optimizing users' difficulties in
modern life where technology is increasingly multitasking and useful for people.
Besides, it is building a strategy of sustainable cooperation with component suppliers
so that they can cooperate to create a product with the most complete and best features
to consumers. Ultimately, the most important thing that Samsung should do is to put
consumer safety first.
4. Choose four global regions (Pacific Rim, NAFTA countries, etc.). Explain how
marketers of Samsung products would need to respond to consumers (and

retailers) in those regions.
● Asia
In an important market like Asia, customers who have made a deposit to purchase can
withdraw the deposit, switch to buy another product or wait until there is a new
product from Samsung depending on the customer's wishes. In case those who have
bought it, if there is an error, they are committed to 100% renewal or refund. In case
customers have doubts about the product, they are also supported 100% to change the
product if the customer has a need. Customers can bring the products directly to the
retailer's customer care centers for the best service support.
● Europe
In Europe, the recall rate of Galaxy Note 7 phones has surpassed 90% in the context
of Samsung's decision to stop producing Galaxy Note 7 after reports of fire and
explosion incidents occurred in some countries. Samsung has also limited the battery
charge level for devices on the European market to protect users. In the UK, Samsung
works with mobile operators and their retail stores. In Germany, in some cases, the
company has provided direct delivery services to consumers.


Pacific Rim
Based on its membership in the APEC economic organization, Samsung can easily
provide information to customers in this region. It also provides specific instructions
for retailers in each country.
● North America
In this area, almost all Galaxy Note 7 phones have been recalled above 90% and for
phones that have not been recalled, the battery level will be limited to 60% to ensure
safety for users. Retailers are also given strict and specific designations during product
recalls.
●