Equilibrium Points & Network Cascades
Following Samsung’s disastrous results with the Galaxy Note 7 explosions, we see that many of the users who previously endorsed Samsung products have shifted towards Apple’s Iphones. What is noteworthy is that the numbers of customers who switched over from Samsung to Apple is a record high, and Samsung’s numbers continue to drop. This phenomenon can be analyzed through equilibrium points.
With previous phone models, despite the competition from Apple, and other phone companies, Samsung has always held a fair share of stability in the market. It is most likely that it had certain equilibrium values z’, and z”, and Samsung’s customer share values fell somewhere in between, allowing it to maintain it’s position in the market. However, nowadays with the constant negative media exposure regarding the frequent explosions, it is most likely that Samsung’s customer share values fell below the lower bound of z’, thus making it difficult for Samsung to recoorperate in the market
Lastly, within this situation, we also see an instance of Information Cascade. With many people reporting poorly about Samsung’s phones, a negative context regarding Samsung’s products spreads virally through social media. This leads to many customers to simply buy an Iphone without even considering other options – due to the overwhelming majority of previous customers choosing to purchase Apple’s hit comodity.
http://www.indialivetoday.com/samsung-galaxy-note-7-recall-majority-owners-shift-apple-iphone/53850.html