How explosive should the launch of the new Samsung Galaxy Note8 be?

University essay from Lunds universitet/Företagsekonomiska institutionen

Abstract: In August 2016, Samsung launched the Galaxy Note7, but the initial excitement of both the company and the market dropped painfully after only a few days when reports covered phones that were bursting into flames. With an increasing number of incidents and massive media coverage, Samsung had to quickly step up its actions from a reluctant withdraw to a global recall within only one month. Hence, the company’s newest flagship product did not yield high earnings but, in fact, caused tremendous costs through the overall crisis handling and a record-breaking recall. As a consequence, the next phone model—and a version of the same product line—was loaded with an urgent need to compensate for the crisis, and to gain back trust. Therefore, the following question arises: How should Samsung communicate the launch of the new Samsung Galaxy Note8 and how should the company—if at all—refer to the previous crisis?

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