In Samsung’s annual New Year
speech given by co-CEO and Vice-chairman Kwon Oh-hyun, Kwon has addressed the challenges
the company has faced during 2016 and the new plans that they will take in
order to achieve better growth for 2017.
The design flaw in Samsung’s
mobile unit Galaxy Note 7 resulted in an overheated battery, which led to
various degrees of explosion, costing billions for the company.
“Growth in our target markets is
lagging, and political and economic uncertainties have increased due to changes
in policies and exchange rates,” said Kwon during his address to the employees.
Kwon has urged every employee of
the company to come together and strive for better growth and results for the
new year.
In 2016, Samsung underwent a
crisis with its defective Galaxy Note 7, which had various reports of an overheating
and exploding unit, ending in a recall and discontinuation of the model.
The scandal has cost the company
a total of $5 billion, and has affected profit of the company, having a dismal
record low report during the third quarter for 2016. Meanwhile, Samsung has
since then tried to move past the issue.
“After the expensive lesson learned last year,
let us make all necessary reforms. First, we will maintain the basics of
product competitiveness. Quality has been the cornerstone of our success that
we must not compromise. We will restore top quality standards through improved
processes and strengthened testing,” Kwon added.
The issue that Samsung faced has
taken a toll on the company’s sales growth target during 2016. Still, Kwon
expressed optimism that the company will be able to recover from the said
issue.
Aside from the Note 7 issue,
Samsung was also involved on the investigation of the prosecutors in South
Korea regarding a corruption scandal of the South Korean President Park
Geun-hye late last year. It was suspected that Samsung may have been a
beneficiary or accomplice on several illegal transactions that Park has
operated during her term as president of the country.
Even though it will take time
before Samsung will be able to absolutely recover from its losses during 2016, the
company is hoping that they could rise above the challenges they are facing as
soon as possible.
“It will take the collective
efforts of all employees to overcome the daunting challenges ahead of us. Let’s
leverage our full set of capabilities as a company to confidently and
definitively rise above these challenges.”
According to reports, Samsung
plans to incorporate a voice-recognition based artificial intelligence feature
on its mobile devices this 2017. The company will also venture further into the
competition in 5G, Internet of Things (IoT), and autonomous vehicles.
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Samsung CEO warns of “lagging” growth for 2017
Reviewed by Trade12 Reviews
on
12:38 AM
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Reviewed by Trade12 Reviews
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12:38 AM
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