In automobile industry, its always the product P which has a dominant status. Once the product is acceptable then irrespective of the other Ps, the product becomes a winner. The company which demonstrated this to the world more than any other company is now suffering with the same problem.
Its Toyota.
Recalling close to 8 million vehicles, more than its total 2009 sales (Source), Toyota had committed a major marketing crime. It was through the quality and reliability that Toyota redefined, it became the worlds No.1. The company that taught the world JIT, is now suffering because of a quality issue from its supplier. This probably could be an outcome of its cost cutting efforts.
This might possibly be the end of the Japanese dominance in the US market after a similar announcement from Honda. And the impact can be even worse if the other European and Asian countries also react. Even when GM filed for bankruptcy, neither anyone blamed the company nor its brand equity went down. And with the revival strategies, GM will be soon on track. But its not going to be easy for the Japanese. And this might well reflect on other products from Japan.
Now its upto Toyota and Honda, on what strategy they are going to frame to re-establish their lost pride.
Its Toyota.
Recalling close to 8 million vehicles, more than its total 2009 sales (Source), Toyota had committed a major marketing crime. It was through the quality and reliability that Toyota redefined, it became the worlds No.1. The company that taught the world JIT, is now suffering because of a quality issue from its supplier. This probably could be an outcome of its cost cutting efforts.
This might possibly be the end of the Japanese dominance in the US market after a similar announcement from Honda. And the impact can be even worse if the other European and Asian countries also react. Even when GM filed for bankruptcy, neither anyone blamed the company nor its brand equity went down. And with the revival strategies, GM will be soon on track. But its not going to be easy for the Japanese. And this might well reflect on other products from Japan.
Now its upto Toyota and Honda, on what strategy they are going to frame to re-establish their lost pride.
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