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Toyota company introduction overview
Introduction of Toyota company
Essay brief history and background of toyota
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TOYOTA OVERVIEW & INDUSTRY ANALYSIS
1. TOYOTA CORPORATE OVERVIEW
Toyota Motor Corporation has been around for over 75 years competing in the automotive industry since the 1930’s. This Japanese company manufactures, assembles, designs, and sales cars, trucks, SUVS, minivans, and related parts and accessories conducting its business worldwide with 53 overseas manufacturing companies in 28 countries and regions. Toyota 's vehicles are sold in more than 170 countries and regions. 1
According to the World Investment Report, Toyota is ranked number 2 on the world’s top non-financial Multinational Enterprises (MNE). As of March 31, 2016, Toyota net income has jumped to $19.271 billion,an increase of 6.4%.2
2. TOYOTA GLOBAL VISION
Toyota will lead
3.4 Number and Sizes of Competitors
The competition in this industry is extremely and the trend is only increasing. Internal competition includes pricing, quality, and product innovation, while external competition includes the other forms of transportation such motorcycles, scooters, public transportation, etc.
3.5 Stage of the Industry Lifecycle
The lifecycle of the Global Car & Automotive Manufacturing industry is in a mature stage of its lifecycle.
3.6 Value Chain Model
3.7 Competition Analysis
Toyota Motor Corporation
Toyota has incorporated a market share of 9.3% in the automotive manufacturing industry. This multinational corporation has generated an estimate of $250 billion in overall revenue. Toyota has an employment of over 330,000 people, which the majority of its employees work at manufacturing facilities. The core products of Toyota include small and medium-size
Volkswagen AG
General Motors Corporation
Ford Motor
As of 2010, Ford is the second-largest U.S.-based automaker and the fifth largest in the world based on vehicle sales in that year. Ford has seen success in the international market, and is ranked in the top ten fortune 500 companies. Ford was the tenth-ranked overall American-based company in the 2013 Fortune 500 list, based on their global revenues in 2012 of $134.3 billion. (CNN, 2014)
Ford Motors is 10th on the Fortune 500 List (U.S. only) with revenues of $128,954.0 (in millions) and profits of $6,561.0 (in millions)
Jorge Lopez Houston, TX 77035 cocolopz1@gmail.com 6/11/2018 James Lentz Chief Executive Officer Toyota Motor North America, Inc 6565 Headquarters Dr, Plano Dallas, TX 75024 Dear James Lentz, Your ad for financial analyst caught my attention as I prepare to finish college and join my fellow blue-collar workers. I am currently a junior at the University of Houston-Downtown and I am majoring in finance. The main reason I am writing this letter is that my dream job is to work for Toyota the biggest car manufacturer in the world. While researching your company I was amazed that Toyota is 5th on the list of Fortune 500. Even more astonishing is that Toyota is the fifth-largest company in the world by revenue and the biggest automobile manufacturer.
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).
Lean assembling keeps Toyota ' generation expenses low. Reaction is the capacity to venture in every business corner they need, which issues them a tremendous focused edge. Next to this current Toyota 's autos are viewed as dependable and high quality.Combining these four interesting highlights: High Quality, unwavering quality, capacity to accomplish each fascinating specialty showcase accordingly taking care of demand and asking a reasonable cost empowered Toyota to develop much greater than alternate
New research and development system are being done for the industry for the best response to the competition of the new age. According to the Auto Alliance, the automobile industry spends approximately $100 billion on R&D worldwide in general and $18 billion in U.S in particular per year. Also in 2016, the United States produced, assembled and exported almost 2 million new, light vehicles priced at about $57 billion around the world, with $80 billion of additional exports of automotive parts. With an open investment policy, big consumption market, high skill workforce, good infrastructure, and the reasonable incentives, The U.S is surely the primary car for any automobile industry, including
Significant production and distribution network Toyota’s CCC21 strategy allows them to see a steady increase in their production and sales. As previously stated, in Fiscal Year 2012, the company produced and sold a combined total of 17.4 million vehicles worldwide. Their opportunities throughout their geographic locations (53 manufacturing locations within 28 countries and regions) in addition to their capabilities reach a plethora of customers (vehicles sold in more than 170 countries and regions), thus increasing their revenue. (Worldwide operations, 2016) Weaknesses Automotive recalls Toyota had a decline in sales from 2008 to 2011, and a portion of that reason was due to recalls.
Its success owes to adapt its supply to the needs and requirements of the europeans, based on total quality strategy, innovation and continuous competitive spirit. In Europe in 2003, the Japanese company under three brands owned Toyota, Daihatsu and Hino, recorded a 4.4% market share. In 2004 there were 17 production units of Japanese automotive facilities in the European Union; they produce 1.3 million vehicles and 14 research and development centers. It is estimated that these investments have created 200,000 new jobs. The European market is too important to be ignored, said the Japanese 's, it is still a strong market that rivals many companies for and it has a unique industrial
...l website and browse their showroom you will see over forty different vehicles, while in the United States there are only eighteen vehicles available from Toyota. Along with this, the vehicles sold in the United States market are generally have a cheaper interior quality then those sold in Japan or Europe. Even our domestic automakers sell us lower quality vehicle interiors.
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.
The nonmanufacturing companies can learn and apply from Toyota’s philosophy and practices as listed below: