3. Introduction
Inception of Toyota – Founded by Kiichiro Toyoda, Japanese
businessman in 1937
3rd positioned in automotive company in the current market
Competitors of Toyota - General Motors and Ford in United
States and Honda in Japan.
Sale of Vehicle by unit- 8.871 million units
Net Income earned in 2013 - Yen 962.1 billion
4. General Environment Analysis
The general environment analysis process has four steps:
Scanning, monitoring, forecasting and assessing (Hanson
et el. 2011).
Has six segments:
Demographic: Toyota faces a decreasing population in
Japan (-0.1%)
Macroeconomic: -Interest rates, exchange rates &
inflation. Rise in Yen makes Japan a high cost production
location & requires Toyota to move production overseas
5. General Environment Analysis
Political/Legal: - Laws enacted in some countries to reduce Cos
create challenges to Toyota.
Socio-cultural: - Changes in values and preferences of customers and
the society at large provides both threats and opportunities.
Technological: - There is a technological shift taking place in the
automobile industry. while Toyota continues to stick with hybrid
technology, other companies (such as GM with the Chevy Volt) are
starting to introduce all electric vehicles.
Global: - The move toward the globalization of markets requires
Toyota to become more of a global company.
6. The Four Characteristics of global economy
1. The economic integration
2. The capital movements
3. Production has no correlation to the employment
4. The internet
9. Net Income Comparison
20529
18950 18994 18584
1082 1550
3418
6380
2717
6557
20222
5664
0
5000
10000
15000
20000
25000
2009 2010 2011 2012
M
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l
l
i
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n
s
Toyota
Volkswagen
Ford
11. Internal Environment Analysis
To attract & attain customers with high-valued
products & services & the most satisfying ownership
experience in America
To be the most successful & respected car
company in America
World domination with regard to car supply.
The company seeks to achieve market leadership by
delivering value to customers & providing high quality
vehicles
12. Internal Environment Analysis
CORE COMPETENCIES
Produce
- What is needed
- In the amount that is needed
Total quality control
All workers to meet customers’ needs
Involve all workers in the company
(BEING INCLUSIVE)
- To achieve total effectiveness of
the production system
- To ensure total productive
maintenance
Computer integrated manufacturing
to include:
- Design
- Production
- Distribution
- After sales service
- Support in the field
- Use computers & IT
13. Internal Environment Analysis
VALUE CHAIN OF TOYOTA1.Efficient & effective marketing and sales service
a. Qualified staff
b. Marketing program (Oh What a Feeling)
2. Supply after sales service
a. handle complaints & provide solutions
b. provide sales training
3. Efficient production method
a. Toyota has quality instruments to assemble & tune new car engines
b. Has an effective method of stopping work if there is a problem – therefore there
is no poor quality
4. Upright inbound logistics ensures:
a. The clients’ demands are met
b. therefore there is no storage costs or wastage do to lack of demand
5. Good accessibility:
a. Toyota manages its own showrooms in all countries
b. Toyota does not outsource its services
c. the products are easily accessible & their values are not inflated.
15. Recommendation
Business level strategy >>
Focus on technology and innovation of
Hybrid vehicles as future
differentiation strategy
Develop fuel efficient, compact vehicles
for emerging markets
Functional level strategy >>
Operation strategy : Focus on product quality control, continuous
learning and improvement on manufacturing systems for efficiency
Marketing strategy : Reinforce Toyota brand image to restore
reputation and build brand loyalty to increase value of Toyota
16. Recommendation
Enhance market share >>
Develop presence in emerging markets; China and India
Concentrate on USA market by Americanize the design,
production and marketing
Invest and expand in European market
Continuous learning and improvement of Toyota product and process
through technology and innovation
Increase customer responsiveness; identify and satisfy needs,
improve support and after sale services
17. Conclusion
Toyota has sources of strong competitive advantages in global
automotive industry, such as TPM, value chain, strong brand,
wide product offering and hybrid vehicles
Major recalls, economic crisis, natural disasters and intense
global competition have posed serious challenge for Toyota
Growing emerging markets and shifting customers demands
offer opportunities for Toyota to attain superior profitability
and growth
Toyota must sustain its competitive advantages to retain its
position and achieve future success