Case Study Of Samsung Galaxy Note 7

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MGMT 512 – Corporate Governance 0055133 – Nur İPEK KARAGÖZ

SAMSUNG GALAXY NOTE 7 FAILURE

1. Summary of what had happened

Samsung Electronics produced and marketed the Samsung Galaxy Note 7 which is an Android tablet.

Although it is the sixth main device in the Galaxy Note series and a successor to the Galaxy Note 5, Samsung branded its series number as "7" instead, so that consumers would not perceive it as being inferior to the

flagship Samsung Galaxy S7. The flagship phone was also meant to compete with arch-rival Apple's iPhone

7, but instead has done huge damage to the Samsung brand.

“The Galaxy Note 7 is an evolution of the Galaxy Note 5 that inherited hardware components and

improvements from the Galaxy S7. Demand …show more content…

Credit

Suisse analysts estimated that Samsung would lose at least US$17 billion in revenue from the production

and recall of the Galaxy Note 7.” [3]

[1], [2], [3] https://en.wikipedia.org/wiki/Samsung_Galaxy_Note_7

MGMT 512 – Corporate Governance 0055133 – Nur İPEK KARAGÖZ

Samsung Electronics vice chairman Kwon Oh-hyun told investors “I'm sorry for the scandal, I apologize

once again for the mistake with the Note 7 last year. It was a failure that arose from trying new technology”

at the smartphone maker's annual shareholder meeting in Seoul. While he was apologizing from investors,

he was also denying that they did anything illegal.

Kim Sang-Jo, a Samsung shareholder and head of the Seoul-based monitoring group Solidarity for

Economic Reform said that it was a problem caused not only by technical errors but also by rigid corporate

governance structure. Only messages delivered by Lee himself will be significant, so I hope he will come

out in public to talk about these pressing issues of how to improve corporate governance and corporate

culture”. But Mr. Lee did not attend the shareholder

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