MINISTER OF FINANCE UNIVERSITY OF FINANCE – MARKETING TP HCM, 2022 CASE STUDY SAMSUNG OVERCOMING Overcoming Strategic, Tactical, and Operational Challenges STRATEGIC IN OVER THE WORLD (Marketing Industry), TACTICAL,.
MINISTER OF FINANCE UNIVERSITY OF FINANCE – MARKETING - - 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 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 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 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 issues After all, Samsung had to recall a total of 2.5 million Note phones from all around the world 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 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 ● 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 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 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 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 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 is to put consumer safety first 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 phones has surpassed 90% in the context of Samsung's decision to stop producing Galaxy Note 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 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 ● ...Samsung: Overcoming Strategic, Tactical, and Operational Challenges Abstract of the case study: On the second of September 2016, Samsung stopped... (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... 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