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Home - Kagan: Will AI save the Samsung master brand?
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Kagan: Will AI save the Samsung master brand?

by Jeff Kagan November 14, 2016
written by Jeff Kagan November 14, 2016 Share
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The Samsung master brand seems to be exploding or imploding or something. What’s going on over there? We have all seen and admired the amazing growth story of the Samsung brand in many different industries. This has been a company firing on all cylinders. However, recently things started to explode and burn. It started with the new version of their wireless smartphone. Now it’s their washing machines as well. What the heck is going on over there and can they recover?

First it was the Samsung Galaxy Note 7. As soon as this device was launched the trouble started. They began to overheat, melt and burn. Not good if it was in your pocket or if you were in the air on a flight. I think this is something Samsung should have discovered before sending these devices out into the marketplace. Their quick fix was to recall the phones and replace them with new devices they said would be safe.

Galaxy Note 7 meltdown

Unfortunately, these new devices started to overheat, melt and burn as well. So not knowing exactly what was going wrong, Samsung decided to pull the entire line of Galaxy Note 7 phones. This was what they should have done in the first place. The brand is now severely damaged through this process. And the damage is not over.

The problem is of their own making. They should have had better testing before unleashing this catastrophe on the marketplace. This seems as bad as those Takata air bags in countless cars threatening the wellbeing of drivers from coast to coast and in fact the entire world. The Takata brand is ruined. Is this what Samsung can expect?

Samsung washer meltdown

Now Samsung washing machines seem to be exploding. Wait, this is a different company. Sure they all share the master brand name, but this is an entirely different company in an entirely different industry. Yet they too are overheating and doing strange and even dangerous things.

So what the heck is going on over at Samsung? I have a Samsung big screen TV. In fact, I have several. I was happy until all this bad news started to break out. I have several Galaxy smartphones along with Apple iPhones. They all work the way they are supposed to. Until lately, I had complete faith in Samsung and their master brand.

Master brand is damaged

Never thought of Samsung as a master brand? Well that’s exactly what they are. Just like General Electric or General Motors. They have several different brands under the Samsung master brand. Several different companies in different industries. And they have been successfully building this brand worldwide for years.

However, now they have three strikes against them and in baseball terms, are they out? Strike one, burning phone. Strike two, burning replacement phone. Strike three, burning washing machine. This is starting to become an ongoing problem for Samsung and their customers.

Can AI help Samsung recover from master brand meltdown?

Two questions. What’s next and can Samsung recover? After strike one, it was possible that they could recover if nothing else went wrong. Companies are run by human beings and we often screw up. After strike two, it was becoming more difficult to cut them any slack. After strike three in an entirely different industry, confidence is being shaken in the Samsung master-brand.

The brand and the master brand are very delicate. They take years to build, but can be destroyed very quickly. That’s what is happening right now.

So how can Samsung save their master brand? One, they can move forward without any new problems. Two, they can spend time and money saying with the right kind of marketing that rebuilds trust. Three, they can intrigue the marketplace with new ideas and new technology that captures the imagination.

Samsung Galaxy S8 with AI vs. IBM Watson

Last week Samsung said they would introduce artificial intelligence on the next Galaxy S8 smartphone. AI is one of the newest and fastest growing slices of the tech pie. This means every tech company wants to jump into this pond. Some will do so with real, powerful and useful technology. Others will just use the terminology to make them sound like they are part of the conversation.

IBM Watson is real AI and has been growing for years. You remember when it won the TV game show “Jeopardy” around five years ago. I attended this year’s IBM World of Watson and it was truly amazing. How it is saving lives and starting to provide incredible AI power to industry after industry.

AI, artificial intelligence, augmented intelligence

Samsung has not yet been a player in AI, but it is a rapidly growing area. There are many companies throwing their hat in the AI ring. Current competitors in their space include Apple Siri, Google Now and Microsoft Cortana on the smartphone. On a different level it also means Amazon Alexa and Echo as well as the new Google Home devices are rushing into this new marketplace. Expect this to continue.

IBM Watson is the king of the AI hill today. To IBM, AI does not mean artificial intelligence. To them AI means augmented intelligence. This takes AI to an entirely new level. This is going to quickly become a complicated marketplace with different levels of AI from the smartphone level, to the device level to the Watson level.

Where will AI fit in the marketplace?

So with that said, where does Samsung AI fit into the puzzle? That’s the big question. If it is just a marketing term to distract users from the disastrous exploding Galaxy Note 7 and washing machines, I think AI will not help them.

However, if Samsung AI will enhance, improve and expand the user experience, this could be just what they need to reboot their growth engines. The problem is, we just don’t know yet.

Can Samsung recover?

The solution seems obvious. Samsung should test before they unleash new devices into the marketplace to make sure they are safe. This is something every company should do. Not only for liability reasons, but to protect their own brand value.

Bottom line: Samsung has experienced significant brand and master brand damage. They have built a strong brand over many years. They can recover, but only if nothing else goes wrong and if they take the right steps, right now and going forward. Something they have not done a good job at to date.

Let’s hope they can wrap their arms around this crisis, and Samsung is in crisis. Let’s hope they improve their testing of devices before unleashing them into the marketplace. Let’s hope their AI is real. This is the only way the burning and exploding Samsung brand can be saved before it crashes. And time is of the essence.

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Table of Contents

  • Galaxy Note 7 meltdown
  • Samsung washer meltdown
  • Master brand is damaged
  • Can AI help Samsung recover from master brand meltdown?
  • Samsung Galaxy S8 with AI vs. IBM Watson
  • AI, artificial intelligence, augmented intelligence
  • Where will AI fit in the marketplace?
  • Can Samsung recover?
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Jeff Kagan

Jeff is a RCR Wireless News Columnist, Industry Analyst, Consultant, Influencer Marketing specialist and Keynote Speaker. He shares his colorful perspectives and opinions on the companies and technologies that are transforming the industry he has followed for 35 years. Jeff follows wireless, private wireless, 5G, AI, IoT, wire line telecom, Internet, Wi-Fi, broadband, FWA, DOCSIS wireless broadband, Pay TV, cable TV, streaming and technology.

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