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Home > Management > Do Companies Still Have To Stick To Quality First?
Management

Do Companies Still Have To Stick To Quality First?

The pursuit of quality too much can have two consequences. First, the cost of the product increases, reducing the competitive advantage of the product in terms of price; second, enterprises focus on quality and ignore the real needs of consumers, missing the opportunity to develop

Last updated: Apr 15, 2025

Motorola, which was acquired by Lenovo, recently launched a new phone with a shatterproof screen, the Moto X Pole, priced at over five grand. Lenovo demonstrated its perfect quality in an exaggerated way at the launch: a drone carried the phone to a height of about 60 storeys, then let go and let it fall, resulting in the phone's screen intact, with just a small crack in the top left corner. moto also promises a free warranty if users experience a broken screen within 4 years.


Is a phone this durable and at this price really attractive to consumers? With the rapid development of technology, products are constantly being updated and the needs of mobile phone users are changing rapidly, with most users changing their phones in 2-3 years, some in less. In four years' time, perhaps some consumers have already changed one or two phones. Bad screen or not, it's not an issue. So does quality not matter? What should be the balance between quality and cost, and consumer demand?
 
Throughout its history, Motorola's rise to prominence and glory was due to the implementation of the Six Sigma method of management, the emphasis on quality and the creation of top quality phones. However, its decline and subsequent acquisition by Google and resale to Lenovo was also due to an excessive pursuit of quality, resulting in "quality overload" and weakening the competitiveness of its products.
 
Japan's home appliance manufacturing industry is experiencing the same problem, with Toshiba and Sharp laying off a large number of employees in 2015 due to losses, and the five biggest players in the Japanese electronics industry - NEC, Panasonic, Fujitsu, Sharp and Sony - having lost two-thirds of their market value in the last 12 years. High quality" is no longer the most important purchasing factor for consumers. A kettle, for example, will be obsolete after five or six years of use by a new product, but the quality is so good that it is a shame to get rid of it, rather than something of slightly lower quality but at a lower price.


Going overboard with quality can have two consequences. Firstly, the cost of the product increases, reducing the competitive advantage of the product in terms of price; secondly, enterprises focus on quality, while ignoring the real needs of consumers, missing the opportunity to develop. Those companies that still insist on "quality first" should perhaps look around and understand what changes have occurred in consumer demand and whether there is a surplus of quality.
 
Clarify the direction of development
Companies should pay more attention to the development of products and technologies in the industry to accurately grasp the direction of the market. According to the well-known consulting firm Gartner, smartphones became the focus of industry attention in 2010 when the growth rate reached around 50%. At that time, various smartphone applications were emerging, and Apple subsequently launched iOS5, voice recognition software Siri and various other new applications and functions, refreshing the user experience and achieving great success.
 
The new CEO in 2011, Dennis Woodside, said that he would "focus on a few phones" and "provide users with better voice recognition and a better camera and longer-lasting battery, etc. The company's focus is on a few phones," says Woodside. In the choice between "newer" or "better" products, Motorola made a bad decision and took a different path to Apple.
 
Capturing the real needs of consumers
Look at the features, reliability and longevity of the product, and the resulting increase in cost and price, to see if they exceed the customer's expectations and make adjustments. Certain consumer electronics, like beepers, VCDs, DVDs, card cameras, MP3s and MP4s, have only a few years or a dozen years from invention to extinction, and few customers are willing to pay extra for the extra lifespan.


Excess quality is not absolute and has to be judged in the context of a number of situations. For example, a car that can start smoothly at -50 degrees Celsius would be excess quality if sold to a tropical or temperate customer, whereas it would not be excess quality if the feature was very practical for someone exploring the polar regions.
Advances in technology are giving consumers more choice and their needs are constantly changing. Only by grasping the direction of product and technology development and understanding the real needs of consumers can we ensure that our company is on the right course and does not fall into the trap of "excess quality".



TAGGED: Management, Quality, Business Development
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