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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.
1. As mentioned Toyota is one of the top leading car companies due to their business strategy or plan being focused on the quality of their products for their customers. Now what do you think would have happened if Toyota did not choose to have quality as their main goal but instead they were more focused on low cost of expenses as being the most important factor in their business plan or strategy? With this scenario for Toyota's operations, their parts that are being used in their vehicles would not be as good of quality, due to the fact that they are getting these parts from the manufacturer that is going to be of cheapest cost to them. Well we all know that when something is cheap and inexpensive, it does not mean that it is always the most reliable and it may create more problems for Toyota in the future. With that being said there is a very good possibility that customers who purchase vehicles from Toyota will have problems with them more frequently due to the lower quality parts being used. Then when the customers bring their vehicles back with problems, Toyota is going to replace the non functioning part with another cheap and inexpensive part, allowing them to save money, instead of putting a quality part in. Another factor that would hinder the success of the business would be the fact that the company is going to be spending as little money as possible on the required tools that the vehicle mechanics at Toyota need in order to repair their vehicles when maintenance is required, resulting in the possibility that the employees will not being able to accomplish all the necessary maintenance or repairs to the highest standards or best of their ability due to having limited tools. If the necessary resources are no...
Lexus is the luxury vehicle brand which is the division of the Toyota Motor Corporation. Lexus was launched in the year 1989 and introduced first in US. Now Lexus is sold all over the world. Lexus was founded by Eiji Toyoda. Lexus is now sold in more the 70 countries and regions globally, and now it is graded among the 10 largest Japanese brand which are traded globally. The headquarters of Lexus is located in Nagoya, Japan. And the functional centers are situated in Belgium, Brussels and Torrance, USA and California. Lexus brand is considered as a premium brand. Lexus has been a successful brand and is performing impressively currently. Over 490,000 Lexus vehicles are sold and 60% of the sales happening worldwide is in North America.
The toyota Prius is projected as the “right” car to buy because you will save the planet. Many people tout the benefits on the environment that hybrid cars have. Toyoda has adopted this into many of their hybrid car advertisements to help sell cars to the environmentally conscious consumer. The Prius has been Toyota's top seller in their hybrid car lineup for years, in fact it even tops the hybrid charts across all of car manufactures in america. Prius outsold its closest competitor in the hybrid market, the Ford Fusion, by over 2000 cars.
For over fifty years, Toyota has established over 50 bases in 26 different countries and regions. Their automobiles have found their way into over 170 countries across the entire globe. In addition, Toyota has design and R&D bases in nine locations overseas, with this they prove that they have achieved consistent globalization as well as localization. The most important part in any Toyota base is the quality assurance. They don’t stamp their product with “Made in the USA” or “Made in Japan”, but instead opt for one label for all: “Made by TOYOTA.” This shows that the product is made in the “Toyota Way.” To achieve this, the company minimized support that comes from Japan to let each of their foreign locations become self-reliant. For example, a Toyota plant recently began production in Texas has made maximum use of its sibling’s experience in Kentucky which has been cultivated over the past 20 years. Toyota believes that in order to reach their goals is through educating people. Multiple Global Production Centers have been built within Motomachi Plant in Toyota City, in United States, the United Kingdom, and Thailand to carry our corresponding activities in the Asia-Pacific, European, and North American regions. To promote the “Toyota Way”, the Toyota Institute established an internal human resources development organization in North America, Europe, Asia, Africa and Oceania. As you can see the pros of the globalization of Toyota are endless. This company alone has created millions of jobs across the world. Winners are not only the workers, but also the buyers, without globalization Toyota automobiles would only be available in Japan. Many people, including me, see globalization of this kind as a beneficial and advantageous result. Toyota companies have not only created jobs for thousands if not millions of people, but their
Kiichiro Toyoda found Toyota Motor Corporation on August 28th 1937. Kiichiro Toyoda is the father of the giant automotive industry, Toyota. The headquarters of Toyota is located in Toyota, Aichi Prefecture, Japan. Toyota Motor Corporation has manufacturing plants all around the world with a total of 32 countries consisting of Malaysia, Japan, America, China, Australia, Thailand, Singapore, Belgium, Bangladesh, Vietnam, Philippines, Pakistan, Indonesia, India, Taiwan, Egypt, South Africa, Kenya, Kazakhstan, Russia, U.K, Turkey, Portugal, Poland, France, Czech Republic, Venezuela, Mexico, Brazil, Argentina and Canada. As a giant in the automotive industry, the company consists 333,498 employees as from 31st March 2013(Toyota, 2013). The information
Toyota seemed to be suffering from a major problem with their decision making. Decision making for an organization the size and influence of Toyota needs to be top of mind for its management structure, from the CEO down to the supervisors in their manufacturing facilities.
Toyota seeks to revitalize their venture spirit by reforming their consciousness in light of the Global Vision through other efforts. Toyota Company has mostly focusing on the areas of development, design and procurement. As an example Toyota has been creating innovative synthesis of development and design through a new car making policy building better cars. By introducing different cars that meet local needs in rapidly growing emerging markets, the executive seeks on an increase in the share of Toyota global sales made up by emerging
Toyota is the seventh largest company in the world and the first largest manufacturer of automobiles. The headquartered for Toyota was formed in Toyota City as producing automatic loom. In 1933, Toyota started to manufacture the car. The decision of producing the car was decided by the Kiichiro Toyoda, who is the son of Toyota’s founder. Kiichiro Toyoda traveled Europe to get an idea of gas-powered engines. The government encouraged this idea because if Toyota could produce their own car the government will own their own country-brand for producing cars. It’s will be cheaper on the car part and they also need vehicles for the war with China. Therefore, after one year of Toyota formed they produced their first engine car-Type A. However, during
Toyota is one of the leading Japanese automobile manufacturing organizations in today’s era. In order to maintain their worldwide leadership they are able to maintain their specific forms of manufacturing system. Toyota is technology-based, comprehensive production management system with the primary goals of increasing productivity and reducing costs (Monden 1983).According to this Toyota is focused on providing the best within the budget. Among many of the development process I think simultaneous engineering is the vital one that Toyota follows. Toyota had been integrating simultaneous engineering for several years. Toyota plans, most machine, new or old, are equipped with such de- vices as well as various safety devices, fixed-position stopping, the full-work sys- tem, and baka-yoke fool proofing systems to prevent defective products. In this way, human intelligence, or human touch, is given to the machines.” (Ohno 1988, pp. 4-6). Production system of Toyota is the basis for much of the “Lean Production” movement and has dominated manufacturing trend for many years. Toyota’s performance is based on tools and quality improvement methods .Tools and techniques are one part while quality control, total quality control, business management techniques are another part to make Toyota better than the competitors. Manufacturing and production engineers use computer technology from early beginning for concept development and designing of their product which is less than 12 months or even less for derivative vehicle. Hence, the product development process of Toyota is more likely similar to that of Black and Decker which use engineering, industrial design, model making and prototyping, testing and computer ...
The vehicle manufacturing plant is located at Burnaston in Derbyshire, the engine manufacturing plant is located at Deeside in North Wales.(Toyota Manufacturing UK 2006 ) the company has, since production began in 1992, grown to its current size with 5,500 members are employed. As ...
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- focused differentiation, medium pricing, breadth of product line is low. Company is known for quality products, and nice styling.
(5) Liker, Jeffrey K. The Toyota Way: 14 Management Principles from the World's Greatest Manufacturer. New York: McGraw-Hill, 2004. Print.
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.