Tuesday, October 11, 2016

Samsung and its goodbye to the Galaxy Note 7: to caress the summit to the abyss – Journal Management

The problem of the Galaxy Note 7 could be a mere setback technician of some devices, but it has become a real crisis of incalculable damage in a market where the loyalty is paramount.

it Is the worst-case scenario for Samsung, points out an analyst for Jackdaw Research. (AFP)

Seoul (AFP).- The south Korean company Samsung wanted to reach the top when they launched their new 'smartphone' in a market ultracompetitivo. Instead, it is now at the edge of the abyss.

What with its Galaxy Note 7 could be a mere setback technician of some appliances, it has become a real crisis of incalculable damage in a market where trust and brand loyalty are paramount.

The giant south Korean certified this Tuesday, the fiasco of this 'smartphone' to suspend their production, ask their partners to stop selling this mobile phone of last generation and to recommend that users turn off by the risk of explosion of battery.

The consequences can be disastrous for the series of the Note –halfway between phone and tablet– and the smartphones Galaxy S, they are their weapons emblematic in the hard fighting that pound, in the segment of high-end, against its us competitor Apple.

The first manufacturer in the world of smart phones was forced to order the September 2, a call to review the global scale of 2.5 million units of the Note 7, after that some of these devices burn at the outbreak of the battery during charging.

This seemed to mitigate the crisis. But it all came crashing down when the press revealed that the devices distributed to replace the defective had problems too.

The "worst case scenario".
"it Is the worst-case scenario for Samsung," stresses Jan Dawson, analyst at Jackdaw Research.

"to Paraphrase Oscar Wilde, to lose one version of a product for a problem of battery can be considered bad luck, but losing two versions is akin to negligence", he adds.

analysts estimate that this case could cost Samsung us $ 10 000 million or more. And what is more unsettling is the long-term impact on the brand image of global giant south Korean.

The mobile division of Samsung Electronics has built its success on its ability to unite cutting-edge technology and large-scale production of reliable products, of quality, with a diverse range of prices.

analysts say today that the defects also in the equipment replacement given to understand that this is a global problem, which is very harmful in terms of image.

"we’re in a situation in which they pretend to have identified, and then solved a problem, and shortly after becomes to consider this same problem, strictly identical. It is very bad publicity," adds Dawson.

The crisis with the Note 7 also occurs at a critical time for the group, now in full transition generation of its leadership, whose ability to make good decisions is questioned.

Lee Kun-Hee, chairman of Samsung Electronics, as well as of the matrix Samsung Group, is low since it suffered from a cardiac event in 2014.

All eyes are now focused on the presumed heir, his son of 48 years, J. Y. Lee, recently appointed to the board of directors of Samsung Electronics.

The pressure of Apple.
Greg Roh, an analyst at HMC Investment Securities, the direction of Samsung, maybe obnubilada or down by the impending release of the iPhone 7, Apple, acted with haste with your new Note 7.

"I Think Samsung rushed on getting these new phones, and it would have been better to take more time to carry out a thorough investigation of the causes of the problem of the Note 7.

"there Were too many pressures to control the market before the release of the iPhone 7".

The nightmare scenario for Samsung, imagine Roh would be that the buyers of the Note 7 use the money to give them back the giant south Korean to acquire an iPhone.

"The reason that the consunmidores prefer Samsung or Apple have to do with reliability," explains the analyst. "The case of the Note 7 will weigh in the next model of Samsung smartphone. Overall, the damage in terms of image will be unavoidable. To Samsung it is going to cost to reverse the trend."

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