The retreat of the Galaxy Note 7, Samsung smartphone prone to catch fire, it will be one of the biggest in the history of the technology industry.
The south Korean conglomerate liquidated the entire product line and cut $ 2 billion from its projection of earnings for the third quarter.
On a scale of 1 to 10 that measures the damage to the finances and reputation of a company, the withdrawal of Samsung takes between 4 and 7 points, said Srinivas Reddy, director of the Center for Marketing Excellence from the Singapore Management University that investigates failures of products and brands.
The score is due to that the cellular explosives —while not cease to be "a calamity" for the company— not killed anyone, he said Reddy.
"The threat for Samsung lies in how soon you can return," said Reddy. "If they don’t return soon, it leaves a vacuum that others may fill it up."
In a market where all sorts of things, from cars to cows, may present fatal flaws, the failure of the Samsung product is far from being the worst of the story.
The scandal that erupted in 2004 by Vioxx, the drug from Merck & Co —according to proved studies could increase the likelihood of heart attacks and strokes in some patients— was a "major disaster" of 10 points on the scale of Reddy.
payments for lawsuits and government investigations amounted to more than 8 thousand 500 million dollars.
Other 5 withdrawals notable ones are:
1. Some versions of the Pinto, the car, the compact Ford Engine that came on the market in 1971, came with a design flaw fatal: a blow in the rear of the vehicle could cause fuel spills and explosions. Ford retired about 1.5 million Pinto’s in 1978 following an investigation by the u.s. Government and criminal charges filed by the state of Indiana. Shortly after, it stopped manufacturing the car.
2. The largest retirement in the history of the automotive industry not yet ended and could lead to a bankruptcy with billions of dollars in costs. The airbags of Takata needed to save lives in the event of a crash. Instead, the defective products were transformed into cannons deadly that they were shot at fragments of materials to the passengers. At least 16 people died in cases related to the product.
3. Basic foods, such as chicken, beef, and peanut butter were removed by errors or unsanitary conditions in the manufacturing processes. Peanut used peanut butter in more than 800 products that were contaminated with salmonella in 2009. The result were nine deaths, more than 700 cases of illness and one of the withdrawals largest in the history of the united States. The company collapsed and its former chief executive was sentenced to prison.
4. Even the medications taken to relieve pain have been shown to be fatal. In 1982, Johnson & Johnson withdrew close to 31 million bottles of Tylenol after seven people in the Chicago area were killed by the ingestion of capsules of cyanide-rich.
5. Some of the cases of higher profile involved children. Mattel recalled some 21 million toys made in china, including those based on characters from ‘Sesame street’ and ‘Dora the Explorer’, after it was discovered that some contained more than 180 times the allowable level of lead paint. In case of ingestion by a child, lead can cause brain damage, learning problems, and even death.
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