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Toyota and Microsoft Analysis

Toyota and Microsoft are two largest companies holding the leading position in the market and facing the problem of the maintenance of the positive public image in the market and customer loyalty to their brand. To put it more precisely, both companies has suffered from the deterioration of their public image because of different reasons but today the companies have to work on the improvement of their public image and to attract customers to their products and services. In this regard, both companies should find effective strategies to take a better position in the market and to form a positive public attitude to their brands.

On analyzing the current position of Toyota and Microsoft in the market, it is important to place emphasis on the fact that they hold a strong position. To put it more precisely, Toyota is the largest car manufactured in the world, whereas Microsoft holds almost virtually position in the market. In such a situation, both companies attempt to use the full advantage of their position. At this point, it is worth mentioning the fact that Toyota and Microsoft still face considerable problems provoked by the deterioration of their public image and negative attitude of the public to their brands. In this regard, it is possible to refer to the recent scandals related to the recall of Toyota’s cars because of technical problems. As for Microsoft, the company has faced a series of anti-trust lawsuits, which affect consistently the position of the company and lead to the formation of the negative attitude of the public to the brand because its monopolistic position may lead to the unfavorable pricing policies for customers and to the deterioration of the quality of products created by Microsoft. In such a way, both Toyota and Microsoft face considerable problems with the deterioration of their public image and the risk of the low confidence of customers in the quality of their products.

In such a context, it is important to refer to differences in the political environment, where Toyota and Microsoft operate. Toyota is based in Japan, where the government tends to regulate the development of the national economy that naturally affects such companies as Toyota because they need to take into consideration policies conducted by the government to plan their business development. In contrast, Microsoft is based in the US where the government conducts more liberal economic policies and the interference of the state in the economy is minimal. As a result, Microsoft can conduct more flexible policies, independently of the government. In contrast, Toyota has to coordinate its policies and business strategies with policies conducted by the government in order to meet regulations developed by the government in the national economy. At the same time, the US government and all branches of power maintain the fair competition principles. This is actually why Microsoft faced a series of anti-trust lawsuits and had to change its policies to refuse from its monopoly in the market and any attempt of the company to impose its policies on customers offering them products, customers were not willing to buy, for instance.

Furthermore, it is necessary to take into consideration social differences in the environment, where Toyota and Microsoft operate. In fact, Toyota operates in quite conservative society, where the maintenance of traditions is important. In such a situation, Toyota faces substantial difficulties with introducing changes that could have been one of the reasons of technical problems in its cars and deterioration of its public image. The company could probably fail to introduce changes in time to maintain the high quality of its products. As for Microsoft, the company operates in the democratic and liberal society, where changes are welcomed. This means that the company can offer customers new products and customers would accept them and enjoy using new products.

At the same time, from ethical standpoint, both Toyota and Microsoft operate in the environment, where the social and ethical responsibilities are very important. As a result, both companies have to conduct socially responsible policies and take into consideration existing ethical norms and rules. In this regard, Toyota has to take the public good as the primary concern of the company because the public good is traditionally one of the major ethical principles in Japan. In contrast, Microsoft operates in the highly individualistic environment, where the success of the company is prior to benefits of the public. At any rate, the US society can justify the strife of the company for increasing its benefits.

Finally, legal differences in the US and Japan are also quite significant and widen the gap between Toyota and Microsoft. Legal regulations in Japan are stricter to conduct business compared to the US.
Thus, obviously, Toyota and Microsoft operate in different countries with different ethical, political, social, and legal environment. In such a situation, it is possible to recommend Toyota to focus on the quality of its products and to enhance socially responsible policies. Microsoft should refuse from its monopolistic position and, instead, the company should create conditions for fair competition.

References:

Hart, J.L. (2004). “Organizational Communication in an Age of Globalization: Issues, Reflections. Practices”. Business Communication Quarterly, 67, p. 122-141.
Clarke, R. L. (2000). “Investing in the human resource.” Healthcare Financial Management 54 (2); p.16.
Zaleska K. J. (1999). Integrating case: Organizational and national cultures in a Polish/U.S. joint venture. New York: South Western.