Competitive Pressures In International Business

When the Auto Companies across the World specially in Europe & USA are still trying to come to terms after the recession....a breath of good news came to them in the form of 'Few Brakes Problem In One of the Toyota Models'....Watch out BBC/CNN its being presented as one of headline news...The American & European policy makers/politicians are taking keen interest in the braking effect and showing extreme concern about the safety of their citizens who are driving Toyota....While by logic its completely fine...But what i sense that the matter has been blown over the head not only due to the problems that very few of Toyota models has come across but also because of a huge Internation Pressure that the european and american government has brought on table to highlight the issue and take some advantage by taking some shine of the proud Jap Car maker...Look at the way it has hurt Toyota they are talking abt calling back more than 2 million cars but what they must be worried about is the hurt image the Toyota 'Quality' has got....Specially in a mature car market like Europe & USA and may also have a trickle down effect on other regions....It will be very interesting to see how Toyota reinstores the hurt image and makes it a news of the past...I hope the brand all the best because i know they very strongly believe in 'Quality' but has been caught in a unwanted controversy....For students of International Business its a classic case study which underlines the principle that brand's operating globally must ensure that no way the core competency and key image drivers are hurt even in a small way as in a world where competition is not about companies its about economies and any problem to a Japanese Auto Industry would be a good news for the American Car Industry...One can debate the fact that 'Any problem with a global brand like Toyota is actually nt good for the countires trying to malingn then itself as too much of a problem any kidn of drop in Sales would impact 'Employment'...Has Toyota also lobbyed with the government's putting this angle into picture to supress the controversy at least coming from the Govt's mouth...is not known but definitely when u r global the game plan changes completly....

Comments

  1. This is not for the first time we are hearing such news about Cars being recalled for manufacturing faults. In fact this happened when Tata's launched their first SUV Tata Safari and the brand continues to exist with fair amount of acceptance.

    The European and the Western Media can continue to make lot of sound bytes to regain their lost share; but such reports are short lived.

    In fact Toyota is rectifying the fault and is returning the Cars with lots of goodies thrown in such as free service for the next 36 months, and gift voucher of USD $300 towards inconvenience caused for owner, etc,etc.

    Therefore, yes I agree that it will dampen the image of Toyota for a period of 6 to 8 months; but the brand will continue to be the heart beat of each and every country where it’s sold.

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