How Quality Management Ideas Can Be Utilized by a Company - Case Study Example

QUALITY MANAGEMENT: ASICS RUNNING SHOES (Name) (Institution) (Course) (Module) (Instructor) 5th August 2009 Executive summary The world of sports is mainly defined by a number of common sports around the world whose popularity differs from region to region. Therefore, manufacturers of such sports accessories and sports wear tend to be limited into those regions. However, running and soccer are the most universal sports among them all. Asics, a sportswear making company has given weight into developing sportswear to running and soccer among other sports. As such, the company has featured well among other established global brands such as Nike, Puma and Adidas. In running shoes however, Asics seems to be somehow ahead. Its success is heavily driven by the quality of their products. This thus raises the question on how quality management ideas in theory have been utilized by the company. Introduction Asics is one of the most popular brands in the world of sports footwear globally. The company offers footwear in various sports such as basketball, running, racing, volleyball walking among others. This year, the company is celebrating 60 years of existence. The company was founded by a war veteran, Kihachiro Onitsuka, in 1949 in Kobe, Japan with the main aim of helping the youth into becoming better members of the society through involvement in sports rather than unwanted behavior such as drug abuse and idleness. His inspiration into this project was mainly drawn from the disenchantment of the youth that was necessitated by the war. Many industries had collapsed and creation of new job opportunities was minimal. On establishment, the company took the name Onitsuka Company Limited. In 1977, the company formed a merger with other two companies GTO and JELENK and thus changed the name to Asics. The name Asics is basically an acronym for the company’s philosophy borrowed from a Latin saying Anima Sana in Corpore Sano translating to ‘a sound mind in a sound body.’ Currently the company has established branches in the US, Australia Germany and a number of other minor units. Asics and quality management The company’s success over the years has been based on excellent quality products and continuous product improvement. For instance the company has managed to sponsor award wining athletes using their products. This has been a very effective marketing tool that reinstates customers’ belief in the company’s commitment to quality products. As a result the company has posted impressive financial reports and market share. In Japan, the company controls 50% of the sports shoes market with the global market share expected to be worth US$23 billion by 2014 (NDP). As another strategy, the company segmented markets and specialized the various international units to local sports. This in line with the example laid out by the Toyota company according to Liker (2004) who says that the company’s growth in the last few decades has been powered by the company’s ability to have powerful networking and marketing systems adapted to each particular market segment. While Asics has segmented its market geographically, other segments exist as determined by demographics, income and the kind of sport involved. Liker (2004) informs us of another strategy, The Toyota Way, as used by Toyota that can also be observed in Asics. The Toyota Way recommends that companies should not only limit their eyesight in their products only. The Toyota Way seeks in minimizing wastage in production thought ensuring high quality always. According to Liker, this aspect has kept the Toyota company way above her competitors when it comes to quality. He says that the main reason why the Toyota cars penetrated the US market very quickly soon after introduction in the market was because the cars were durable and that they needs very little service as compared to Americans models such as Ford and Chevrolet. Benchmarking in Asics, as another concept that this paper will address later is viewed in terms of the company comparing her products to that of competitors. According to the Toyota marketing team, the company interacted with consumers of competing vehicles in order to understand what customers want. American automakers however concentrated their efforts on n on essentials such as appealing car design with little emphasis on the vehicles performance and utility aspect. Later on the company's life, Toyota gave a lot o f emphasis on performance and operation costs such as fuel efficiency. On the same length Asics has continuously improved on existing models to produce excellent quality products. As of this year, the most recognized running shoe, Gel Kayano 15 is receiving favorable market rating in Australia and globally. Though the company is involved in making other footwear for other sports, it is in running shoes that the company has most excelled in. In recognition of this, this paper will track how Asics has manages customer needs through quality running shoes, specifically the Gel Kayano 15 as compared to other models by the same company. Gel-Kayano 15 is the latest running shoe model in the market incorporating the latest technology. The Gel Kayano line was first unveiled in 1994 and has been undergoing continuous improvements incorporating relevant technology. In fact, the line has taken numbers from 1 to 15 with the preceding one being labeled Gel-Kayano 14. This is a perfect example of brand line extension that encourages established consumers to upgrade with technology and also encourages products loyalty. Asics has other brand names nimbus and trabuco. Shoe model Key features Rating GEL-Kayano 15 Higher volume rearfoot GEL provides extraordinary cushioning • PU distribution plate sits on top of the GEL unit to even out load • Extended Trusstic feeds through to the PU plate of the rear GEL unit • Space Trusstic works with the complex functions of the foot to facilitate Windlass Mechanics • Spacemaster UV upper mesh to keep a dry and cool • Forefoot outersole features the new AHAR Ride +, for unprecedented ride and fee AU$250* GEL-Trabuco 12 WR GEL Cushioning Systems provide maximum rearfoot and forefoot shock attenuation • Extended DuoMax Medial Post provides stability and support of the midfoot on uneven terrain • Full length SpEVA Midsole for increased shock attenuation AU$190* GEL-NIMBUS 11 - T941N / T943N (4E) IGS neutral runner philosophy is used for this shoe, more cushioning, no DuoMax but still a nice stable midfoot platform to propel forward • Gender Specific Cushioning – visible by the different colour call out in the forefoot • Biomorphic upper with Asymmetrical Lacing System • Large rearfoot GEL component with discreet pods for the SOLYTE midsole • New Ortholite ‘softer’ single density sockliner AU$250* * The prices quoted by the manufacturers are different from the one quoted by a number of different stores. Other additional details of the Gel-Kayano 15 Biomorphic Fit™ upper with asymmetrical design and lacing provides superior fit and comfort while decreasing the potential for irritation - P.H.F.® (Personal Heel Fit): memory foam lined heel collar molds to athlete's foot creating a personalized fit - 3M® reflective material enhances visibility - GEL® Cushioning System: a silicone based gel strategically placed at high impact areas in the forefoot and rearfoot for shock absorption - Solyte® midsole for improved cushioning is lightweight and provides excellent bounce- back and durability - I.G.S.® (Impact Guidance System): linked components that enhance the foot's natural gait from heel strike to toe-off - DuoMax® support system consisting of different density midsole materials designed to help correct the degree and velocity of pronation - Features advanced Space Trusstic System®, a pocket between the Trusstic System® device and the midsole, allowing for greater midsole deformation and more efficient foot function - Trusstic System™: a molded component that reduces the weight of the sole unit while retaining the structural integrity of the shoe - Super lightweight Solyte™ 55 medium-density last for a cushioned but more stable ride - AHAR® (Asics® High Abrasion Resistant rubber) heel plug enhances durability of critical areas of the outsole - DuraSponge® blown rubber forefoot outsole provides superior durability and cushioning with less weight (Asics.com) The Gel Kayano 15 as a new brand in the market is being marketed using a number of management theories as observed from the company' strategy. First and foremost, there is unique combination of the Six sigma model and total quality management. According to Nixon (n.d.), total quality management has to encompass all aspects of production and marketing in producing quality products which has to be strategically managed. However, the use and application of six-sigma as a management has been evolving over time while many marketers have adopted the definition of the term for their application. Nevertheless, the general understanding lies in using data from customer oriented activities to marketing and productions to achieve near perfect quality. For instance, in the company's description of the shoe model, various improvements as compared to previous models are highlighted. The shoe features enhanced shock attenuation in the heel, improved forefoot road feel, and a new midsole platform for greater midfoot stability that delivers the famous GEL-Kayano ride that runners expect. "Designed for runners who pronate slightly more than normal" (Asics). The Gel-Kayano 15 has also a mesh and synthetic leather upper part that allows increased feet aeration and abrasion resistance. This is a significant increase from the other models which have shown to have little “breathing” space for the feet. The shoe has also highlighted another element of its high quality through health consciousness. The ComforDry™ sockliner enables optimal cushioning performance in a cooler, drier, healthier environment than in the earlier versions of the Gel kayano series or even the others such as the nimbus. Six sigma also lays emphasis on design. According to the founders of this quality management concept, Motorola Inc, six sigma targets at reducing defects in a single batch or production unit. To ensure this, Asics emphasizes on the individual testing of each unit. This is the same method used by the Toyota Company (Beckford, 2003) Liker (2004) summarizes the Toyota way as continuous improvement process in manufacturing and production and respect for people, in this case employees. The management of available human resources in a given organization can be taken by many departments according to Liker. However, an organization's culture is the ultimate determinant on how successful people management initiatives in those organizations are going to be. In this respect he says that if a company aims at adopting a lateral rather than vertical structure but the organizational culture does not facilitate that, then the company does not achieve its goal (Kotler, 2006). Lang (2005) says that although markets may share common needs, the temptation on part of the marketer to generalize the marketing communication on the different markets should not be allowed to hold. She (Lang, 2005) says that products localization is one aspect that makes consumers feel special. She says that even if a product is the same in different markets geographically, the n each market should be made to feel special. In addition it creates a sense of belonging and has a high potential to earn customer loyalty. In the case of Asics, the company strives to consider different terrains existing in Australia that would make a resident of each area feel that the shoe is fitted for him or her and for that specific terrain. Internet advertising is another convenient way of marketing the quality of the brand. This is because unlike other advertising tools, the internet offers the company a more viable way to receive reviews from the market. Customers with products experience have the opportunity to share that information with other potential customers and have a greater chance of influencing their purchasing decision. While Asics is entitled to establishing a forum where customers can express their views regarding the products, many independent blogs exist where the same can be carried out. Therefore, Asics has developed a number of customer experience forums where customers can exchange their views on product experience. Customer feedback is part and parcel of product research and development. According to the Asics management, the company has gone to great lengths to incorporate suggestions from customers. This is the same way that Toyota achieved its excellent customer satisfaction standards according to Liker (2004) by seeking feedback from consumers. Another area that Asics has sought to endear its brand to the market is the use of natural and environmentally friendly materials in making of their shoes. Although not incorporated in the Gel Kayano, Asics has developed a number of shoes that have used materials such as rice husks. However many critics have been quick t point out that manufacturers are being forced to abandon quality on the pretext of -protecting the environment. However, in the case of Asics shoe, finding the right balance between the environment and quality is the trick. Nevertheless, it can been noted that not few of the highly acclaimed brands is comprehensively environmentally friendly thus giving precedence to quality first. Total quality management as another management concept closely related to the Toyota Way. TQM is simply defined as directing (managing) the whole (total) production process to produce an excellent (quality) product or service. However, Wilkinson, Marchington and Dale (1994) tend to dispute this simple definition saying that this management concept may at times be perceived too be vague to be practically applicable in real life situations. These authors go ahead and criticize this management concept by saying that it has not achieved its promise according to a number of surveys on real organizations. In addition to this, using TQM has a number of implications on human resources management. They view that much attention has been given to "hard" production issues living behind the "soft" human resources issues which in the first place are supposed to drive the "hard" production issues. On issues of ethics and trust, Asics has gained a lot of trust from the market. Through continued high quality products, consumers have in the long run relied on the brand for quality sports wear. In marketing the Gel Kayano 15, Asics has extensively publicized al the intricate details of the shoes. As earlier shown, the company takes pride in explaining to customer how various technological applications have been utilized in the brand to ensure high performance, good products experience and even take care of the wearer. This way, the company demonstrates that it has the welfare of the customer in mind in developing such product. As such, the fears of a ruthless marketer are dispelled. On another footnote, Asics has been actively involved in a number of corporate social responsibilities initiatives such as sponsoring athletes and even organizing sporting events. Conclusion Asics has incorporated a number of theories that are suggested by a number of quality management experts. Among those suggested by the experts are evident in the company’s rise to a global brand with a strong brand image in the running shoes portfolio. From above, Liker (2004) says that an organization that ignores researching into the market and interacting with the customers is doomed to fail. Since inception, Asics has shown a habit of sponsoring teams in other sportswear portfolios involving teams in order to seek their approval before the actual introduction of the products into the market. For instance, the Australian National Netball team (Netball Australia). As such, Asics has strategically managed its products quality more so in running shoes, which has transformed into a competitive strategy. References Asics website: http://www.asics.com.au/catalogue.asp?group=1 Beckford, J. Quality, London: Routledge, 2003 Kotler, P. Principles of Marketing, New York: Prentice Hall, 2006 Liker, J. The Toyota way: 14 management principles from the world's greatest manufacturer, New York: McGraw Hill, 2004, NDP http://www.marketingcharts.com/direct/global-sports-equipment-apparel-and-footwear- market-nearly-280b-5548/ Lang, Y. Marketing Communications, Culture, and Localization, 2005 (Accessed on 2nd August 2009 from) http://www.translate.com/Language_Tech_Center/Articles/Marketing_Communications_Culture_and_Localization.aspx Nixon, J. Quality and total quality management (n.d.), (Accessed on 2nd August 2009 from) http://www.referenceforbusiness.com/management/Pr-Sa/Quality-and-Total-Quality-Management.html Netball Australia ((Accessed on 2nd August 2009 from) http://www.netball.asn.au/extra.asp?id=243 Wilkinson, A., Marchington, M. & Daleuman, B., Manufacturing More Effective TQM: Implications for the Management of Human Resources, Research and Practice in Human Resource Management, 1994, 2(1), 69-88.) (Acessedd on 2nd August 2009 from http://rphrm.curtin.edu.au/1994/issue1/tqm.html) Read More