Reading reaction journal 1

Reference:
Isidore, C. (2010, March 25) Toyota’s $ 1 billion sales incentive. CNN.com Retrieved Murch 30, 2010 from
http://money.cnn.com/2010/03/25/news/companies/toyota_sales/index.htm
Summary:
According to the article I read, Toyota intends to spend $1 billion to boost their sales as their cars had some problems the previous year; therefore the company has gained a bad reputation. This program would benefit consumers; for example, with zero interest financing, subsidized leases and free maintenance for previous Toyota owners. However, it is hard to improve their reputation. Toyota plans to use some incentive programs to cover the model year and wishes that the incentive program would be able to improve their sales and make up for whatever they lost in the previous year. The cars’ problems have already been solved. Toyota needs to improve their sales, but some people think that 1 billion is not enough to boost sales as the amount is inadequate to meet their target. Some people have estimated that Toyota’s sales will be higher than the previous year. However, the recall is still a problem. This problem benefits customers because they are able to get more discount than before. This plan to boost their sales with one billion would not pose a problem to their financial status. They have always used such incentives to boost their sales.
Reaction:
Toyota is a smart company because they know when it is the correct time to use incentives to boost sales. I like their ideas of incentive because it usually boosts their sales. For this recall problem, they recalled a hundred million cars from all over the world. This recall problem causes Toyota to lose hundreds of millions of dollars because their sales will be affected. Currently, Toyota wants to boost their sales, so, they spent one billion dollars to improve sales. I think that one billion dollars is inadequate to boost their sales because a lot of customers have already lost confidence in Toyota. They need to spend more than one billion to improve their quality and sales. I think that spending ten billion to boost their sales would be ideal because their trademark value is worth over ten billion. It would be hard for Toyota to boost their sales because their trademark image is already very bad. They should spend more time to boost their trademark image instead of planning to use money to boost sales.