Toyota Case Study Analysis

TOYOTA MOTOR CORPORATION

STRATEGY ANALYSIS

Toyota Motor Corporation is an automobile manufacturer based in Toyota, Aichi, Japan. It. was established in 1937. It is mainly engaged in automobile and financial business. Toyota handles its business in 3 segments. Automobile segment is involved in design and manufacture of vehicles like cars, mini-vans, trucks, as well as the related accessories. Finance segment is engaged in financial services related to its products sales. The other segment is involved in the design, manufacture and sale of housings, information and communication business.

In 2013, it consisted of 333,498 employees across the world and as of Nov 2014, Toyota is positioned as world’s 12th largest company based on the revenue.

From November 2009 till 2010, the company recalled about 9 million vehicles worldwide. In March 2014, the company paid a fine $1.2 billion for covering up the the issues of safety behind the recalls.

In Japan Toyota’s vehicle sales have been declining gradually because the companies based in America and Europe share their business in Japan. Majority of the countries the company handles its operations are in Asia. And, the company handles its Research & Development in industrialized states as workers with higher literates are required for controlling Research & Development operations.

Last 5 years were unexpected for vehicle manufacturing companies. Increasing fuel costs and growing environmental concerns have moved the customer’s choices from fuel consuming cars to smaller and more efficient vehicles. Throughout the past 5 years, growth in the countries Brazil, Russia, India and China has supported Toyota’s production. Demand for Toyota cars increased in these countries because of their rise of incomes. And, Western automobile companies transferred their production facilities to these countries to get advantage from their markets and benefit from low-cost production. In the coming 5 years, the economies will continue to grow, and the automobile industry revenue is expected to grow about 2.5% (annual) i.e. $2.6