Personal Case Study
Toyota has been operating in automobile industry since decades and is enjoying a reputable market position. The company has hundreds of franchises and introduced world’s latest technology in global automobile market. The technology advancements are offered to public after several checks and quality assurance and safety measures. Still there are several accidents which happen despite of all security checks. During 2009 one of latest vehicle named Toyota Lexus encountered an accident due to failure of technology. The San Diego received an emergency phone call from passengers of Toyota Lexus who were terrified due to out of order accelerating control of car. The passengers could not get even few seconds and the car smashed completely. The technology failure resulted in loss of four lives. This accident has put a great question mark on authenticity of Toyota’s security check and quality control. It led to a crucial trust and reliability crisis for Toyota all over the world. The customers demanded a complete review of quality and reliability analysis of company products and services. Despite of such crucial circumstances, Toyota’s management delayed apologies or assurance for inquiry which created more resentment among customers. The tragic accident not only resulted in loss of four lives but also caused decline in Toyota’s sales, investors, and market share and customer loyalty.
The company delayed communication regarding casual agents of incident and did not make any disclosure or clarification for such huge loss. The consequences plunged quality of company from 30 % to 19 % according to customer opinion and feedback. The central office of Toyota did not initiate any enquiry in this regard which could have examined the possible reasons for such crucial accident. Ultimately the National Highway Traffic Safety Administration (NHTSA) forced Toyota’s