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Globalization of the auto industry
Globalization of the auto industry
Toyota creating sustainable competitive advantage
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1 – Toyota: Toyota is globally the largest auto manufacturer by sales and production, the company had created plan to reach markets through and in UAE, it is estimated that the UAE vehicle market is about 1.4 million vehicles and it grows annually, on average, by 10%, and in the following will talk about what Toyota has done to secure the biggest share in the market Meet every customer need: the company has created culture in its internal document to carry out the policy of “Customer first”, ultimately: the goal is to develop new cars for each customer in each country or region and caters all customer segments, and when looking at the UAE situation, the company has created about three key product offerings, with customized specifications to target different segments, passengers car targeting the bigger population, SUVs targeting smaller segment of the market, and commercial segment who would require reliable reasonable vehicles to support its busy operations. New Market and Local Customization: Toyota as a global company was able to present its sensitivity to the needs and requirements of the countries in the region, it would add features for SUV cars to run in off-road or in the desert, it is has successfully delivered a car for each customer who is concerned about quality, safety, and also budget. When the recall news hit UAE, the company quickly worked with government to ensure and evaluate the need of doing similar action, Hungry for luxury? Toyota was successful in conveying the message that its cars are affordable of good quality, but that would not appeal to smaller segment of the market who would require top car luxury car, Toyota has reacted by providing a level A of the standard car which has ext... ... middle of paper ... ...re is big trend for clean energy and company responded by investing on this sector and started many programs to minimize waste and preserve natural resources, it has created many tools and programs that preserved power, water in massive amounts, not only that company has done this internally, it is also making huge investment on new technology and project with zero carbon print. - One of the good examples is an important trend in UAE which has increasing numbers of residents and who is partly considered one of the top consumers of power and water resources globally, UAE wanted to have clean energy and environmental solutions for this issue. The company responded by offering solutions using latest technology taking advantages of solar energy and has established a successful project: the first city in the world with zero carbon print which depends on solar power.
BMW having high market share in European and U.S luxury car markets, started facing issues with launch product qualities and also facing a fierce competition from Japanese producers. Currently the market share was still stable but the rigorous growth of Japanese producers would affect BMW in future. These Japanese competitors had set higher standards of conformance.
Another strategy used by BMW to differentiate itself from other automakers in the market is the proactive usage of technology and innovativeness in the development of products. From the early 1990’s, BMW has been on the forefront of incorporating technology in its designs in line with the technological advances of the modern world. This has led to the creation of inventive products. The uniqueness of these auto products put BMW in a position of advantage. The development of the hydrogen car as early as 2000 was an indicator of the company’s innovative strategy. In addition, the company also presents itself as environment friendly creating a whole range of vehicles in this category. This is a differentiation strategy meant to boost the company’s image and reputation amongst customers. In addition, this gives the environment conscious customers a variety of products to choose from giving BMW an upper hand in the industry.
Toyota- focused differentiation, medium pricing, breadth of product line is low. Company is known for quality products, and nice styling.
I chose to look into General Electric for this project because they are an energy supplier and multi-national company. Energy providers have a reputation as a money hungry companies that care about the bottom line more than people and the planet. It is easy for a person to assume that a corporation of GE’s size, money would be its only concern. What I learned was that GE has a public image problem more than a Corporate Social Responsibility (CSR) problem. The company has been working to make the people of the planet more Earth friendly by creating technology that has higher efficiency with fewer emissions and lower resource demands. GE has a well-established strategy for Corporate Social Responsibility. As a result of CSR the company has reaped profit benefits as well as a perceptibly better company image. It was with great expectation that I chose GE in the hopes to find an area that a global energy supplier would need improvement. I found that GE is within the top-10 of companies that demonstrate CSR. GE shares this distinguishment with other companies such as Patagonia, Nike and General Motors. Besides continuing the course they have started, GE could further add to their repertoire by providing roadmaps for other companies to follow in order to be a business with demonstrable CSR.
As one of the leading automobile manufacturers in the world, Toyota ranks within the top three worldwide. Due to their unique business model, they are now have a market share of 14% in the first four months of this year. That is an astonishing 2.3% jump from the previous year. According to Autodata.com, the Toyota City based automaker ranks fourth in United States sales.
Toyota Motor Corporation is a Japan based company, whose headquarters are located in Aichi Prefecture. The company was founded by Kiichiri Toyoda in 1937. Currently the company’s CEO is Akio Toyoda. Toyota is basically into cars and it is one of the top players in the world in this industry. Toyota also owns two other brands namely Lexus and Scion, which gives the company a lot of advantage over it’s other competitors. Toyota manufactures sedans, saloons, suvs, muvs, pick-up trucks and buses. During the year 2013 Toyota had approximately 333,498 employees, who were working globally. In March 2013, Toyota was ranked as the thirteenth biggest organization globally in terms of its revenue. In the following table we can see the financial report of Toyota Motor Corporation in the year 2013-
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.
One of the very first things a buyer should consider when looking for a car is what kind of car he/she wants. Many different factors can affect the car buying process. For one, the buyer must consider how big of a vehicle he/she wants and safety features like airbags, seatbelts, and working brakes. Itemizing a list of accessories can also help narrow down what kind of car to buy. While some people might prefer a Sedan with a large back seat and seat warmers, others may prefer an extreme luxury car with full stereo systems and miniature televisions. Every person has different tastes in accessories; luckily, there is a vehicle that can fit almost every personality. Most new models have the latest technology installed, although some of the “newer” used cars have the option of adding in those accessories. Once the...
Different nations within which Toyota operates have different political, technological, social, and cultural environments. To safeguard the company’s overall image, there must be effective communication between the head office and regional quarters. This is especially important in the area of quality control, as Toyota currently grapples with safety issues facing several of its car models.
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.
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.
After General Motors (GM), Toyota Motor Corporation is the second largest automotive maker around the globe; although, Toyota ranks in first place in profit, revenue and net worth. Toyota was established by Kiichiro Toyoda in 1937, as a by-product of Sakichi Toyoda's Toyota Industries Company, to produce Toyota automobiles. Headquartered in Bunkyo Tokyo, Japan (as well as Toyota, Aichi); Toyota offers pecuniary services with their Toyota Financial Services division. Toyota Industries, along with Toyota Motor Corporation, make up the Toyota Group. The Toyota Group consists of Daihatsu Motors, Scion, Lexus, Fuji Industries, Yamaha Motors, Isuzu Motors and of course, Toyota Motors. Toyota Motor Corporation operates globally with the automobile industry, which includes 522 worldwide subsidiaries (Toyota, 2010) (Sagepub, n.d.).
The nonmanufacturing companies can learn and apply from Toyota’s philosophy and practices as listed below:
With today’s society being the new age of social media, Mercedes Benz has now reached a new high demographically. Websites such as Facebook, YouTube, twitter, and Instagram has jumped on the advertisement bandwagon. Mercedes Benz is now connecting with amazon also to create a whole new experience for the future. Their strategy is to aim for younger buyers through social and digital media influences. Its prestige and revolutionary approach is an example of how their marketing strategy has been very successful. The technology, safety, performance, and interior set its brand far away from other vehicles. Dating back to 1886 Mercedes Benz has a history of making history. Its motor trend has expanded from several different classes and the consumers love them all. These vehicles were designed to be very distinguished with high quality all across the
The global company Mercedes-Benz is considered one of the most successful and well-known automotive companies worldwide. Since 1886, the company’s founders Gottlieb Daimler and Carl Benz made history with the invention of the automobile, including the Daimler Group, which is one the biggest producers of premium cars and the world’s biggest manufacturer of commercial vehicles globally (Daimler, 2013). Their main focus is innovation, safety, technology, style, brand image, expansion, and superior automobiles by offering the best of the best to consumers worldwide. The brand’s philosophy is to continuously create radically new products to advance the cause of human mobility. It is also the number one luxury brand in the United States and Germany while continuously expanding in China and Russia as well (Interbrand, 2013). Mercedes-Benz has a great selection on divisions such as cars, trucks, vans, buses, and financial services offered to any consumer or business. Their global reach has increased tremendously by including production facilities in 17 countries on five continents and having 93 locations worldwide. As a pioneer of automotive engineering, their strategy is to continue the same pioneer role with the ongoing development of mobility, especially in the areas of safety and sustainability (Daimler, 2013). It is very essential for the company to focus on consumers’ needs and their highly well known brand in a competitive global economy. That is why the company Mercedes-Benz releases a brand new model every year to stay on top of its competitors by improving previous models. Some strategies practiced are global marketing, global product development, global product pricing, global advertising, global distribution, an...