Poor quality is a reason for competitive disadvantage

Examples of poor quality:

• Product fails- e.g. a breakdown or unexpected wear and tear

• The product does not perform as promised

• The product is delivered late

• Poor instructions/directions for use

• Unresponsive customer service

Cost of poor quality:

• Cost of reworking or remaking products

• Costs of replacements or refunds

• Wasted materials

• Lost customers (expensive to replace- and they may tell others about their bad experience)

How poor quality damages competitiveness:

• Financial costs (e.g. compensation)

• Lost customer loyalty

• Damaged business reputation

• Need for greater controls and checks

• Competitors take advantage