Case Study: Samsung’s Next Steps
Background & Dilemma
Let’s take the wonderfully rich case of Samsung’s Galaxy Note 7. As you probably heard, Samsung recalled all Galaxy Note 7 phones from North America because of widespread reports that the phones can become overheated and explode—a public relations nightmare. The company timed the release of the phone to directly compete with Apple’s release of the iPhone 7 and Google’s new Pixel phone. The company suddenly faced a huge financial loss, a major setback in the mobile phone market, and a damaged reputation globally. Imagine you are on Samsung’s North American public relations team. How, from a public relations perspective, do you move forward?
Course of Action
Article 1 from Business Insider
As part of your environmental scanning role, it is first important to see what, exactly, media are saying and what issues need to be addressed. So, before walking through the discussion below, first download the two news articles above and read through them as if you are a member of Samsung’s public relations team. Make any notes regarding what stands out as an opportunity or issue for your company’s PR. This will help you start to consider the following questions: What types of information are being highlighted for the public? And how does this news influence your response? Once you have completed your own analysis, continue to the bullets provided to see how your notes compare.
- The article leads with an estimate regarding potential financial loss, but the numbers are based on media and analyst estimates. The only comment from Samsung regarding an estimate is that it will be “a heartbreaking amount.” Would it be worth clarifying Samsung’s estimate, rather than have media guess?
- The phone tested had been well reviewed. So what questions might the public have as a result?
- In an example of “today’s stories become tomorrow’s context,” the article explains that the phone, “will now be forever linked with backfiring batteries instead” and the recall, “seems certain to do long-term reputational damage.”
Now take a look at article #2, written approximately one week later. This article demonstrates that in complex cases such as this one, the situation evolves over time; the story remains in the spotlight. Consequently, the public is able to observe the company’s actions (and inactions). So what are the PR-specific implications from this article?
- The article leads with the story of a 6-year-old boy being rushed to the hospital because of a Samsung phone.
- Airlines around the world are now calling for a ban of the Note 7s on all flights. (On a side note, shortly around this time, the FAA banned Note 7s from airplanes. Every airline started making the announcement to passengers that Note 7s were not allowed on board—thus reminding the public of the crisis, over and over again.)
- The U.S. Consumer Product Safety Commission is now involved.
- Samsung still has not said how much a recall will cost beyond “A heartbreaking amount.”
- And if I haven’t emphasized it enough that “today’s stories become tomorrow’s context, here’s another example: “The question, however, is whether Samsung will be able to get customers to trust its brand and devices again. While the company was quick to address the problem, it’s unlikely many will forget the overheating and exploding concerns anytime soon.”
Consequences & Moral of the Story
Given these initial notes from the two articles, now really analyze for yourself and think about the most appropriate, ethical next steps for Samsung. Attached is a rubric that might help organize the material and help map out a plan. The rubric is based on the five types of micro-level analysis dimensions we reviewed in lesson one. Normally, you also would incorporate a macro-level analysis, looking at associated images, links, call outs, and article placement. For purposes of this analysis, though, focus on the micro-level detail in order to map out your PR response. In mapping out potential implications, consider if there is a need to shift the tone, get a spokesperson quote from Samsung, comment on certain content, etc. In mapping out your PR next steps, what are the short-term and long-term ethical considerations?
Article 3: Industry publication
As a postscript to this story, now look at the follow-up piece (article #3) written by an industry publication one month later. Does this article provide additional insight into what Samsung did right or wrong? Are the suggestions sound? And how should Samsung’s PR team move forward?
Next Page: Lesson 2 Assessment