How the cost of poor quality can affect competitiveness?

The cost of poor quality can significantly undermine a company's competitiveness by increasing expenses related to rework, returns, and warranty claims, which erode profit margins. It can also damage customer satisfaction and brand reputation, leading to loss of market share as consumers turn to competitors for higher-quality products. Furthermore, inefficiencies in production due to quality issues can hinder innovation and responsiveness to market demands, making it difficult for a company to adapt and thrive in a competitive landscape. Ultimately, poor quality can create a cycle of declining performance and reduced competitiveness.