Product Recall Case of Samsung Galaxy Note 7

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Product Recall Case of Samsung Galaxy Note 7
Building and establishing trust in the global market is not an easy task. It takes years and years to do that. But a product recall can damage it all at once and ruin the future of a company. In 2016, one of the most globally-acclaimed South Korean companies, Samsung, recalled over 2.5 million Galaxy Note 7 phones. It stopped the production and distribution of the phone. It was reported by several users that Galaxy Note 7 phones had heating issues and they caught fire and exploded at times. Samsung got 35 different reports from throughout the globe regarding what it only defined as a battery cell malfunction (Doulcourt, 2017). It propelled Samsung to immediately address the problem to save its honor and reputation in the global market as it is the consumers and their comfort and safety with the product that makes the products globally enduring. Otherwise, if a consumer gets harmed, there is no escape for the company to hide its face because it can potentially damage the country's prospects in the future and ruin its domination. In an interview conducted before the press conference, D.J. Koh, head of Samsung Mobile, said, "It was a painful crisis to me. In his 33 years with the organization, he referred to it as the worst period” ( Tibken and Cheng, 2017). Recalls damage a company's reputation, financial results, and stock price. In the least likely scenarios, defective goods or tainted food cause trouble for unfortunate consumers. Even worse, recalled products are responsible for accidents, diseases, and even fatalities. So happened with Samsung. Battery heating issues, catching fire, and the worst quality of Gorilla glasses used in Samsung Galaxy have potentially disturbed the reputation that Samsung enjoyed over the years for its quality products until Samsung came up with an issue redresser and re-established the trust of consumers in the market.
IDC analyst Tay Xiaohan said, "There's damage done and the whole incident is detrimental to Samsung's image. The level of damage will depend on how Samsung addresses this issue quickly and solves the problem (Tibken and Cheng, 2017). Thus, it depends on the company how it addresses the issue and comes forward to solve its consumers' grievances using its official website. What are the probable causes of defects and what to do next to assure its consumers? 
Devising a Response Plan
To give a clear definition of a product recall, a product recall is a process of retrieving defective or potentially unsafe goods from consumers while providing those consumers with compensation (Investopedia). Although the stages involved in a recall can vary according to local legislation, there are several common ones. For instance, if a pet food producer introduces a batch of products that contains a chemical that can potentially poison animals, the company will publicly warn about the risks of the food and ask that its customers return the item to the company, or just throw it away. Running away from the problem makes the issue worse, not on the end consumers and producers as well. Both incur their costs on this and consumers get more harm than the producers because most people buy smartphones from their year-long savings and many people like to gift them to their loved ones. Their money gets doomed and their trust is shattered.
Clear Communication between the Consumer and the Producer 
It's difficult for a company to manage the process of a product recall in the market. A slight mistake on its side can give its competitors an upper hand and ruin the future of the concerned company. First of all, the company needs to consider the genuine grievances of its costumers by denying them by abruptly calling it a mistake on the consumers' side. It can cause huge damage first hand. Thus, devising a recall program should be strategic. A company should show leniency to the customer rather than stubbornly rejecting the consumers' plea as done by Intel in 1996. The company kept resisting the chip issue in the face of protests (Harvard Business Review). Finally, when the market was about to collapse, Intel implemented a no-questions-asked returns policy. It severely damaged the reputation of Intel because of haphazardly managing the issue. So, the first step should be clear communication between the customer and the producer, otherwise, that will be a major default. A company has a potential chance to neglect its drawbacks for the time being because it, in the end, puts a lot of effort into making a product involving design specialists, engineers, and all. They think according to the engineers’ mindset rather than looking through the consumer’s glasses. Thus, a company should get into the minds of consumers to understand consumers’ grievances. 
Clear and Concise Recall Policy: Recruiting an Active Response Team 
A corporation may minimize damage from product recalls by managing them appropriately, and it may also uncover the potential for surprising rewards. Sometimes an early recall can be benefitting the company because extending it longer can waive the trust of consumers and let them jump to another brand as competition is all-time high in the international market. The company's management should be aware that long-term connections with consumers and dealers are essential to the business’s survival and that anything that could threaten such relationships, like a recall, would need to be handled swiftly and properly. The chief of the company should personally come up with a message accepting the flaws and assuring the consumers to provide them with replenished products. For instance, a user of Intuit's tax preparation software discovered errors in the program's calculations during the 1995 tax season. He was interviewed and the issue got national coverage. Responding to the grievance, Intuit's chairman, Scott Cook, immediately declared that the company's 1995 tax-year software had problems after hearing the story and looking into the issue. In addition to writing a personal letter of apology to the company's 1.65 million consumers, he then gave a rectified replacement disc to those who wanted it and acknowledged that the company had seriously let its customers fail. The senior managers should promote organizational awareness of the requirement for recall readiness well before a recall is required. Employees should be informed on the relationship between recalls and consumer safety and happiness, as well as the advantages recalls may offer firms.
Nature of Product Recall and Reintroduction Plan
The team should establish the scope of the required response after assessing the situation in the following stage. It should also determine the appropriate kind of recall. Does the scenario call for a complete recall, a limited recall, a restoration, an elective recall, or a change in the way the product is manufactured and distributed? This paved the right way to satisfy the consumers in their comfort. The group should consider how to relaunch the product on the market. A relaunch marketing initiative to re-establish brand identification and increase share may be included in a reintroduction plan, which in an ideal world would be created and carried out with the assistance of several of the individuals who initially designed and introduced the product. 
Rewarding the Response team 
Going through the process of recall is not easy as it involves the effort of all crew members in the company from the chief manager to the retailer, who plays a major role in facilitating the recall process. So, rewarding their constant effort is very important to build their trust and make a long-lasting bond. Thus, it is as important to reward crew members as reward consumers and retain their trust in the brand. The company should also come up with proper instruction manual about its brand’s replenished or new products and more lenient replacement and refund policies to retain consumers’ trust as earlier.

References
Dolcourt, J. (2017, April 17). Samsung Galaxy Note 7 recall: Here’s what happens now. CNET. Retrieved October 16, 2022, from https://www.google.com/amp/s/www.cnet.com/google-amp/news/samsung-galaxy-note-7-return-exchange-faq/
A Strategic Approach to Managing Product Recalls. (2016, August 10). Harvard Business Review. Retrieved October 16, 2022, from https://hbr.org/1996/09/a-strategic-approach-to-managing-product-recalls
Tibken, S., & Cheng, R. (2017, January 23). Samsung answers burning Note 7 questions, vows better batteries. CNET. Retrieved October 16, 2022, from https://www.cnet.com/tech/mobile/samsung-answers-burning-note-7-questions-vows-better-batteries/?_amp_linker=1*155v586*id*THFkVmVpMDBtMkd6VlZYbzRMWm4zbGpuSnBFMmxJMlczMXJsZzJLZVBzbk0ydXBlbUM4OXc5bE5BZzVoN2VnQw.

Product Recall Case of Samsung Galaxy Note 7

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