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Effects of Quality Management on Domestic and Global Competition

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Effects of Quality Management on Domestic and Global Competition


University of Phoenix

MGT 449

October 3, 2011

Patti Moser

Effects of Quality Management on Domestic and Global Competition

The business world is composed of two main markets; domestic market and international or global market. In the domestic market the buyers and seller are local or from within the country. The domestic marketers supply their goods and services in their own country and meet local competitors in the market.

The global market product is the concept to release with the view of selling or competing internationally. Global marketing is important for products and services of those companies, which have worldwide demand, like food, automobile, or cosmetic companies. In such market the company will have competitiveness in the local market but also in the international market and to ensure longer competition the company needs to maintain quality of product or service by working on totally quality management methods. In this paper, the subject to discuss is the effectiveness of quality management in global and local market and the comparison of two different organizations from the same industry based on total quality management. According to Shu, Jiang, and Malter (2010), "A comparison between domestic alliances and a set of specific international alliances shows that effects of knowledge management practices on innovation are heterogeneous across global markets."

Quality management is an approach used by many organizations in the market. Quality management is the process of understanding customer priorities and requirements, designing the product, and the life cycle of product according to the demand and to plan the availability of the product or service in the market and within the reach of targeted audience. At the present global and local markets are flooded with products and services and every company tries to win the confidence of their target audience, which has increased the competition among marketers. To attain excellent position in the market and retain the dominance of their product the company must use quality management techniques to boost competitiveness in the market by advancing the features of products or services.

In different industries like the automobile industry, pharmaceutical industry, airlines industry, etc., companies are launching their products, which are serving locally and globally. For instance, Toyota Motor Company (TMC) but is serving in the domestic market.

TMC is the leading Japanese automobile company, which is serving globally and has competition at the international level (Azzam, Aries, & Shikun, 2011). Mitsuoka is also the discussed Japanese airlines, American Airlines is running domestically, and Lufthansa Airline that operates globally both airlines are renowned and most accepted in the airline industry. The reason for their popularity is the highest level of quality management in their service and operations.


Quality management not only contributes to the product development but also affect the economic growth of the country and its competitiveness. Like quality management techniques have played an important part in the successful trade and industry of Japan and Japanese are well thought-out for more prolific, flexible, and viable in the market. If people discuss the automobile industry of Japan people will find it most vibrant. People are much familiar with the names Toyota, Honda, Mazda, Suzuki, Daihatsu, Mitsubishi, Isuzu, etc. Japan is the manufacturer and considered as the world's largest vehicle manufacturer because of their quality standards.

Toyota is an internationally recognized company and Mitsuoka is competing in the domestic market. Both of the organizations are implementing the quality management process to give tough competition to their competitors. Certain similarities among these automotive companies as far as Total Quality management process are concerned. The Figure 1.1 would be helpful in understanding the process of quality management followed by both of the companies to participate locally and globally.

Figure 1.1

Key to the figure is below.

* Plan about the product and the customer's requirement and demand about it

* Do a competitive analysis for example; what are the competitors offering different, satisfactory to the company target audience, and what the engineer wants to increase or decrease technically for example; minus the road noise, add automatic open or close-door, etc.

* Act in terms of technical comparison to understand the practicality of the product and product of the competitors, for instance no road noise or easy to open doors from outside.

* Finally analyze the possible technological trade-offs, which helps in realizing the negative



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