How does TQM contribute to competitive advantage?

Total Quality Management (TQM) is a comprehensive approach aimed at improving organizational performance by fostering a culture of quality throughout all aspects of an organization. Delivering higher quality products and better customer service is a fundamental principle of TQM, which plays a significant role in establishing a competitive advantage.

When an organization consistently produces high-quality products, it meets or exceeds customer expectations, leading to increased customer satisfaction and loyalty. Satisfied customers are more likely to return for future purchases and recommend the company to others, which expands the customer base and enhances market share. In addition, excellent customer service reinforces the value proposition by ensuring that customers feel valued and supported, further differentiating the organization from its competitors.

Moreover, TQM emphasizes continuous improvement and a proactive approach to problem-solving, allowing organizations to adapt to changing market conditions and customer preferences. This enables businesses to innovate, streamline processes, and reduce waste, resulting in cost efficiencies that can be reinvested into the business for further growth and enhancement of products and services.

In contrast, options that focus only on lower prices, shareholder profit, or the elimination of customer feedback lack the holistic quality-driven strategies that underpin TQM. These approaches do not create sustainable competitive advantages that stem from building strong customer relationships and maintaining high standards