Toyota Motor Corporation Case Study

Toyota Motor Corporation Case Study

Toyota Motor Corporation is a Japanese multinational corporation. It is currently the world's largest automaker.

Mission

"Toyota Motor Corporation is a company devoted to enhancing the quality of life for people around the world by providing useful and appealing products" (Toyota Motor Corporation, 1994).

Its mission has not changed much in the past few years, for the current mission of Toyota can be characterized as becoming the world's leading vehicle manufacturer, which means that it expects to sell more cars than any competitors, whilst setting benchmarks on product quality and production efficiency. Toyota also aims at providing good quality cars at competitive and affordable prices in order to well establish its dominancy within the industry and to remain the number one of all automakers in the world.

On a long to medium term basis, Toyota even wants to become market leader in every continent.

Strategy

Toyota’s great success is related to its admirable image and reputation which allow the strategy of Toyota to be well implemented.

Toyota strives at decreasing costs while maintaining quality and increasing production and operational efficiencies. Toyota invests subsequently in several strategic areas few other car manufacturers can afford, such as hybrid engine and manufacture new cars that comply with the current ‘green trend’. Toyota also tries to expand its global presence in car manufacturing and enter new markets especially in Europe - through the mini-car market - which is mostly dominated by European brands. Toyota did a joint venture with PSA to penetrate this new segment; it already entered the luxury branch in 1989 when it launched a new brand: Lexus.

Toyota c...

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...els with other car manufacturers (Aygo, 107, C1 with Toyota – Boxer, Jumper and Ducato with Fiat).

TOYOTA CORE COMPETENCIES :

Less inventory, fewer man-hours, high quality cars and fewer defects than any other competing manufacturer are key elements that built Toyota success story and made it become the world leader of the automotive industry. Toyota aims high to get close to perfection and excellence. It results in a steadily growth of its market shares and the creation of a new model called “Toyota Way”, which refers to Toyota’s resources and capabilities and its ability to implement them to remain market leader.

PSA and Toyota core competencies mutually strengthen and are complementary. The JV is seemingly a great opportunity for both companies to benefit from each others’ resources and capabilities in order to get more market shares and grow efficiently.