New products have a first-mover advantage on entry to the market and usually preferred by the majority of the target population. Nonetheless, these new products may fail in the market and even get recalled by the manufacturer for several reasons. First, Inherent defects of the same product may affect its market potentialities, thereby discouraging consumers from purchasing them even after solving the problem. Secondly, failure to understand the consumer need reduces customer satisfaction and preferences on the purchases (Christensen et al., 2015). Lastly, lack of promotional measures to create brand awareness reduces the chances of selling the merchandise or long term benefits to the marketer.
In late 2017, Samsung Company had to recall all the Samsung Galaxy S7 smartphone just after its release. Consumers from all over the globe reported that mobile phones had several problems. Notably, a significant number of customers complained of batteries spontaneously catching fire, the power and volume buttons stop working and unresponsive, faulty Bluetooth and Wi-Fi connections, and phones overheating during charging (Hartley et al., 2017). As a result, the company incurred huge losses in terms of loss of revenue, labor, and other market costs, for instance, transport costs to the target market. Moreover, the company faced many lawsuits that severely damaged the company’s reputation and reduced its market segment.
Solutions to Product Failure
There are several ways through Samsung company could have prevented products malfunction before they get to the market. Primarily, the firm could have conducted a pilot survey or testing to check how the product functions. By testing the products, a firm can quickly identify defects such as batteries exploding when charged or phone overheating. Additionally, the firm should provide user manual and also train users on different ways of troubleshooting and resetting the getting. Such an approach could have reduced frequencies of complaints from technical malfunctions, for example, problems with blue tooth connections (Yun et al., 2018). Lastly, it is vital to establish service centers and giving consumers a guarantee period of the product. Service centers helps buyers to seek help and report on any malfunctions even after purchasing the product.
Christensen, Clayton M., Michael E. Raynor, and Rory McDonald. “What is disruptive innovation.” Harvard Business Review 93.12 (2015): 44-53.
Hartley, S. (2017). The case of the exploding Samsung phones. Busidate, 25(1), 9.
Yun, J., Jeon, J., Park, K., & Zhao, X. (2018). Benefits and costs of closed innovation strategy: analysis of Samsung’s Galaxy Note 7 Explosion and withdrawal scandal. Journal of Open Innovation: Technology, Market, and Complexity, 4(3), 20.