The Galaxy Note 7 ended up doing more harm than good for Samsung and now the company has to work harder than it has ever before to eliminate the perception that its smartphones tend to explode. It also has to prove a point with the Galaxy S8 to show its fans and rivals that it’s capable of taking a hit and bouncing back in spectacular fashion. Samsung’s management also faces multiple challenges in the months to come so the company is being extra cautious about what gets put out there. According to a report out of Korea, Samsung is urging employees as well as its suppliers to be extra careful of possible leaks of its confidential business information.
Samsung is calling on its employees to improve security and ensure that leaks are prevented. “Leaks of operational secrets can cause irreversible ramifications, posing a great financial risk on the company and leading to broken partnerships and loss of trust,” it said in an email. An official from one of Samsung’s suppliers is quoted as saying in the report that the company is pressing them to ensure that there are no leaks about the Galaxy S8. “Samsung has notified its suppliers not to mention a single word on the Galaxy S8,” said the unnamed official.
On the management front, Samsung is having to deal with activist investor hedge fund Elliott Associates which has called for Samsung Electronics to be split up into two aside from additional restructuring measures. Even though it’s likely that Samsung will work with the hedge fund this time, it will do so on its own terms, which is why it’s imperative for the company that secrecy be maintained. Samsung is also in the midst of the eventual succession of vice chairman Lee Jae-yong to chairman, a post that he will take over from his father, current Samsung Group chairman Lee Kun-hee.
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