For every company, there is a mojo that drives it to success. This is usually a soft skill above and beyond any company's IP. In business lingo, there is a fancy name for it "core competency". This core competency is what defines that company's brand identity. For Toyota, this core competency was its legendary quality system. Tomes have been written about Toyota's quality process. MBA courses tout Toyota's ultra-flexible (relative to auto industry standards) operations and how they maintain tight control over the quality of their products. Not too long ago, Toyota was the rising star that was beating the hell out of American car companies. To the extent they were idolized as America's best car brand.
But, as has been well covered in the press, recent recalls of Toyota cars has hit it in the gut. The legendary brand known for its quality has been hit by a widespread recall across most of its product line. Sure, the aggressiveness by which the NHTSA has pursued this recall smacks of political desire to level the playing field for the "American Brands". But, without resorting to mud slinging, the Toyota management has mismanaged the whole process by trying to hide issues. That is where the true tragedy lies - Toyota basked in its Roman glory and forgot its roots. Its brand loyalty has taken a hit. As a Product Manager, it is truly sad to see where the numbers become more important than customers. Sure enough, today's reports on how American companies might be benefiting from Toyota's downfall drives the point home. It is going to be an interesting case study of Toyota in days to come.
Tuesday, March 02, 2010
Subscribe to:
Posts (Atom)
