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competitive advantage of Toyota
introduction of Toyota
introduction of Toyota
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Introduction
Toyota has been well-known for long time as the one of the best motor companies in the world. In Thailand, Toyota’s cars are very popular. Moreover, Toyota Service Center has many branches and located all over Thailand. I am interested in Toyota Company because I heard about this company since I was born. Therefore, I would like to do research on Toyota Motor Corporation to learn and understand more about what makes Toyota such a successful company.
General Information and History
Toyota Motor Corporation is a Japanese car company. It operates 75 manufacturing companies globally and markets vehicles in more than 170 companies. Its brands include the Lexus, Prius, Avensis and Auris (“Company”, n.d.).
This company started when Sakichi Toyoda built Toyota Model G Automatic Loom in year 1924. However, its patent was sold to British Company. In year 1933, Automobile Department was established in Toyoda Automatic Loom Works, Ltd. In year 1937, Toyota Motor Corporation was founded and expanded the business later on (“History of Toyota”, n.d.).
Toyota Company’s head office is in Toyota City, Japan. The present President and Representative Director is Akio Toyoda. The main business activities are motor vehicles production and sales (“Toyota Motor Corporation”, n.d.). Last year net revenue of Toyota Motor Corporation is 283.5 billion yen (“Toyota Motor Corporation”, n.d.). Additionally, Toyota Motor Corporation has expand in over 170 countries around the world (“Globalizing and localizing”, n.d.).
Marketing/Image
Now Toyota Motor Corporation has expanded their market around the world, covering 170 countries (“Globalizing and localizing”, n.d.). According to the policy of Toyota vehicles, “Producing vehicles where the demand...
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...ding Toyota vehicles. A Chinese man said that he did not care about brands, but he would not buy Japanese cars (“Open prejudice”, 2013). However, despite large recall and conflict with China, Toyota had the highest sales with 9.75 million vehicles in 2012 (“Toyota back”, 2013). This indicates that Toyota can go further and customers still need Toyota vehicles.
Summary
Toyota Motor Corporation is one of the most successful automobile companies. Because of Kaizen, Toyota never stop create the best product to fulfill customers’ needs. The company is able to extend its market over 170 countries, which indicate that people accept Toyota brand. Although Toyota has to recall many cars for fixing, the total sales of the company are still being the best among other competitors. Car users still believe in current and future products of Toyota, including all green vehicles.
Toyota recently announced it seeks to become a much more efficient and effective automobile manufacturer in the extremely competitive automobile industry. This particular
(5) Liker, Jeffrey K. The Toyota Way: 14 Management Principles from the World's Greatest Manufacturer. New York: McGraw-Hill, 2004. Print.
Toyota is an automobile manufacturer that has become one of the largest in the world (Datamonitor, 2010). They are “engaged in the design, manufacture, assembly and sale of passenger cars, minivans and trucks and related parts and accessories” (Datamonitor, 2010). Toyota’s mission statement is to “Make things better. A philosophy of continuous improvement. Small steps added together to make a big difference. At work. At home. In the community. Even in the world at large. Make things better is what we all strive for. At Toyota, it’s how we approach everything we do. Seeking ways to make things better. In our products. In our services. In the lives of our customers. […] A better Vehicle. ...
Everyone wants a car that will last forever because no one likes making reoccurring trips to the mechanic. There is a story of a farmer who drove his truck over a million miles before he got a new one. The truth is that will not happen for the everyday consumer. In 2013, J.D. Power came out with a study of the eighteen most dependable cars on the road today. Thirteen of those cars were foreign made vehicles, and only five were American made. Yes, it can be said that there are more foreign car brands than domestic, so the numbers can be a bit misleading. No one, however, can argue with the fact that seven of those dependable cars were made by one Japanese company, Toyota (Tate 1).
The company Toyota Kirloskar Motor Private Limited (TKMPL) according to its mission statement aims to play a major role in the development of the automotive industry and the creation of employment opportunities, not only through its dealer network, but also through ancillary industries with a business philosophy of "Putting Customer First".
Since its creation, Toyota has the reputation of making reliable and beautiful cars. Despite that, Toyota acted unethically. The company disregarded the safety of its customers and employees by delaying the recall of some of its cars that it knew had some brakes and airbags issue. Toyota is a well know car brand. All over the world people drive Toyota’s cars with confidence. Unfortunately, this company dishonest behavior tends to show that the people at his base are immoral. All they seem to care about is profit. It does not matter the consequences even if it means the death of an individual.
The internationalization of the company began in 1958, when Toyota started marketing cars in the United States. The first two vehicles imported to the U.S. were the Toyopet and Land Cruiser. Even though the Land Cruiser had better margins, the Toyopet set up for the strategy of a car modified specifically for the American market. We are very familiar with these models still today; they are the Avalon and the Camry. Brazil was the first country in which Toyota constructed a production plant outside of its national borders; this took place in the year of 1959. One very important philosophy the company went by was to localize both the production and the design of its vehicles. This philosophy developed long-term relationships with local suppliers and labor considering the adaptation of products to the locality of use, along with production being there as well. This action gave forth to the implementation of R&D and design facilities in North America and Europe.
Currently, Toyota Prius is the best hybrid car in US collection market. It is one of the most modern sedans in the automotive sector in the business environment. It offers a competitive lead to other businesses since it is environmental friendly and it offers the most excellent fuel system. The market of this vehicle is experiencing development on an impressive degree with the market sales per year being around 550,000 every year in the US from year-2008. The paper starts with the introduction of Toyota Company where short background information and an overview of the market environment, in which its functions are described. An up to date situation analysis is also performed. This analysis gives a clear understanding of the company, its numerous products, rivals and various business atmospheres in which it operates. After looking into its internal and external environment, a SWOT analysis to identify its environment’s opportunities and threats is performed as well as the 4Ps analysis. Basing on these aspects, the most significant matters are recognized and marketing goals and strategies have been classified. In conclusion, a suggestion for change and execution plan has been set up to develop the product. Finally, in order to remain competitive in the market, a brief integrated marketing communication is carried out.
Their principles and practices are very simple and yet they are still evolving over 50 years later. I think that the fact that they could keep all their employees during the 2008 recession speaks to their ability to overcome any obstacle by adapting to their environment. Instead of immediately turning to layoffs they turned to re-training and education. There have been a lot of companies that have tried to duplicate what Toyota is doing, and yet not one of those companies have been able to recreate a success level as high as Toyota. I believe this is due to the length of time Toyota has been in business and practicing these Lean principles. Lean does not happen overnight, it is a company lifestyle. By creating the Lean principles Toyota has held everyone within their company accountable for its success and raised the bars for its competitors to do the same. We live in the 21st century, our world, especially technology is ever changing. There is a constant demand to upgrade and excel at the new latest and greatest product. If you can’t keep up and adapt you will be consumed and fail! Toyota has proven the ability to do this and withstand the harsh demands of the world around them, all while putting their employees
In 1937, the United States was still reeling from the Great Depression, George VI sat on the throne in England, the world was still two years away from the start of World War II, and in Japan the son of the “King of Japanese Inventors,” Sakichi Toyoda, was spinning off a new company from his father’s empire. The son, Kiichiro Toyoda, founded the Toyota Motor Corporation three years after it had created its first product, the Toyota A engine, and only one year after its first automobile, the Toyota AA. Today, Toyota is the largest auto maker in the world and the fourteenth largest company overall, while employing over 300,000 employees worldwide. The original Toyota cars sold in Japan were sold under the name “Toyopet,” which was in regards to the cars small size. Upon entering the U.S. market in the late 1950’s the name was changed to the now familiar Toyota. The reasoning behind this was the name Toyopet could potentially be associated with “toys” and “pets,” two things Toyota did not want. With the advent of harsher importing tariffs on vehicles in the 1960’s and 70’s, Toyota realized the only way to fully penetrate the American market was to begin building the cars here. They broke ground on the first wave of U.S. production plants in the early 80’s. 1982 saw the creation of the narrow bodied Camry model, and by 1989 they had launched Lexus, the luxury division of Toyota. Their first truck, the T100 hit the market in 1993 and in 1997 Toyota began production of what would become the best-selling hybrid car in the world, the Prius. The 2000s saw the company enter into Formula One racing, the release of the Tundra, and awards for the Camry, Prius, and Tundra. In 2005, Toyota was ranked eighth on Forbes list of the world’s leading ...
Toyota- focused differentiation, medium pricing, breadth of product line is low. Company is known for quality products, and nice styling.
Toyota’s uses both differentiation and low cost as generic strategies to try and gain a competitive advantage over their competitors in the automotive industry. The market scope that Toyota uses is a broad one that encompasses nearly every type of customer that is in the market to purchase an automobile. Toyota is able to target such a large market because they have something for everyone. Toyota has four wheel drive trucks and SUVs for the outdoor types or those who live in areas that face severe weather conditions, hybrid models like the Prius for the eco-friendly customers that are interested in saving the environment, along with the standard cars for general, everyday use. Additionally, Toyota provides vehicles for all price ranges.
Toyota Motor Corporation is one of the largest automakers in the world. At its annual conference in Tokyo on May 8, 2008, the company announced that activities through March 2008 generated a sales figure of $252.7 billion, a new record for the company. However, the company is lowering expectations for the coming year due to a stronger yen, a slowing American economy, and the rising cost of raw materials (Rowley, 2008). If Toyota is to continue increasing its revenue, it must examine its business practice and determine on a course of action to maximize its profit.
Toyota has adopted an expansion strategy aimed at increasing the company’s market share through sustainable growth. This will be done based on the delivery of high quality, and safe cars, at an affordable price. As the company seeks to expand to new markets, focus will be on maintaining an organizational culture that allows optimum efficiency in the ever dynamic global market.
Toyota Motor Corporation (TMC), one of the world largest automobile manufacturers, had entered into the Indian market in 1997 through a joint venture with Kirloskar Group; in 2006 employees had been dismissed and suspended by the company, on disciplinary rounds. In response to the company's decision, the employees decided to go on strike which lead to the lockout of its vehicle manufacturing plant at Bidadi located near Bangalore, Karnataka