Case Study : Toyota Motor Corporation

The product that Toyota was introducing to the consumer was not ground breaking and did not set itself apart from any other product on the market, not only did it not set itself apart it was producing vehicles that closely resembled the competition. Toyota was losing their competitive edge of reliability because other companies were able to replicate their efficient production and reliability and have the same success they Toyota previously held. The customer base for Toyota was not growing and more of a following due to loyalty to their past performance. The company had also lost its innovative edge and with this was losing its market share. I see due to Toyota’s lack of initiative by not moving more manufacturing to the US and innovation as an opportunity to enter the small car market that was previously dominated by the Japanese manufactures. With all this said Toyota still had a great reputation for producing a very reliable product, with this reputation Toyota could be one change away from becoming a major player

With the increase of the high local labor cost, Holden is suffering from the high production costs. The market share for its main competitor (TOYOTA) maintains a stable increasing. Though Australia government supported Holden every year in order to protect Australian’s own car maker, Holden itself still can not pass that difficult (ABC Premium News,2013).

Toyota has a huge operation and distribution system around the global. Whereas it affiliates through more than 50 companies in 27 countries apart from Japan. These companies are produce automobile related parts and components for Toyota and also distribute vehicles to their related regions (Market line, 2014). This could be a major competitive advantage from other automobile manufacturers while Toyota geographically well spread and has wide distribution network than

Starting from 2008, it is the number one automotive manufacturers and sellers in the US and around the world. Toyota is leading the automobile manufacturing, assembly and sales. The company uses a very efficient management style, the success of Toyota is related to its proficient marketing strategy. There are signs that the market has enabled the company to achieve a number of other factors that leading outstanding niche. The company’s market structure is not clearly stated. Some people might think it is monopolistic, due to the fact that the company is a dominant market participant in auto exports. In fact, Toyota’s differentiation strategy has made it monopolistic in the world, especially in the developing countries. Toyota is keen to see what their competitors are doing and make sure it reflects their way to ensure its market leadership in action.

Toyota is a Multinational Corporation began on August 28, 1937 and now operates in over 170 countries and regions around the world with its headquarters in Toyota City, Japan (Toyota Overview, 1995-2016). Toyota is a multinational that operates its business through a number of methods since they are worldwide and has a great demand for their products. The company currently operates in Japan, North America, Europe, Asia, The Caribbean and others. Toyota Multinational Corporation is a part of the Toyota group, one of the largest conglomerates in the world. The methods of international business that Toyota uses are by exporting, importing, mergers and acquisitions, development of foreign subsidiaries and international joint ventures. To date,

The main topic of the case was the problems caused by defective or damaged seats. TMM USA's seat problem was threefold. The first was the actual defects with the hooks and the damaged caused by cross threading by employees when installing the seats. This problem led to the second problem, which was the departure from the Toyota Production System (TPS) when dealing with the seat problem. Rather than fix the problem with the seat when it happened, they continued with the car's production and worried about the seat afterwards. And this led to the third problem, a build up of cars with seat problems in the off-line operation area.

This option is not without it’s risks such as the higher production costs in Australia over other Toyota plants in developing economies. In addition, the geographical remoteness of increasing shipping fees. Equipment and parts availability not to mention the overall market acceptance of Hybrid technology thus this option is very much a long term approach. A SWOT analysis for this option is outlined below in figure six.

Decision-makers, like sailors, need to know how to ride out a potential storm and to understand how the winds may change in the future. (World Economic Forum 2009) In global automobile field, Toyota’s faced several problems in European market at the entrance and what entry mode did Toyota choose? Why did they select those entry modes? And how did

The Government of Australia granted $500 million every year to car manufacturing industry in Australia. Australian auto manufacturing industry confronts a genuine unverifiable future. In the present day, Australia produces just 225,000 engine vehicles. This is an industry that depends intensely on the economies of scale and it is of prime significance to accomplish costs competitiveness, in any case it is the present volume that is to a great degree disillusioning. This likewise controls interests in upgrading innovations in auto assembling, for example, propelled mechanical autonomy. With the verifiable ascent in the Australian dollar trade rates, the industry is experiencing focused weight as far as less expensive imports and fare competitiveness. Additionally there are a few protectionist arrangements in numerous noteworthy and vital export destinations that stand to hamper the export. For instance, in spite of the extremely fruitful Thailand-Australian Free exchange Agreement, the Thai Government forces a non-levy obligation. This makes the domain 's cost in Thailand extremely unappealing.

This extended essay will be focused on answering the research question “What will be the future business impacts on GM Holden LTD. resulting from its decision to close its manufacturing operations in Australia?” Holden is one of the first Australian founded and owned vehicle producer in the country, it produces an extensive variety of motor vehicles in Australia and its position in the market started to fluctuate in the past couple of decades due to an increase in competition, Toyota being the strongest competitor. They both have been struggling to achieve the most market share and become the market leader but, Holden still remains to be Australia’s top vehicle seller and is represented by more than 250 dealerships (Holden, n.d., para. 1) nationally whereas Toyota has around 306 (Toyota, 2013, para 3). Holden was the only Australian car manufacturer in the past for a while which is the reason that they have always been successful due to there being little to no competition as they started the

The Ford Motor Company is one of the largest automakers in the world and it is notable due to its powerful position within the global market place. Still, aside from this, Ford is also notable from a business analysis standpoint, representing a firm that has lost its competitive position to the Japanese automakers, due to the inability to recognize changing market trends. Also, the company is notable as it was severely hit by the economic crisis, yet refused aid under TARP (The Troubled Asset Relief Program) and focused on internal restructuring.

Toyota Motor Manufacturing USA, Inc is dealing with an increasing problem regarding seat supply, and one of the main reasons for this issue is due to seat defects. This has led to a decreased run ratio on the line, as well as resulting in the rising number of vehicles sitting off line with defective seats or no seats at all thus requiring overtime to make up for the loss of production. In addition, it should be mentioned about the way Toyota Motor Manufacturing handles the defective seats as they migrate towards the TPS (Toyota Production System) standards.

Toyota is a key player in global automotive market. Its structure constitutes if various production plants in different locations and a very strong branding which helps it capture a major market share. Like other enterprises, Toyota has several strengths and weakness which makes it what it is now. Toyota heavily invests in Research and development which helps it come up reputable product line which is spread out throughout the world because of its strengthening global distribution network however its recent product recalling, loose grip in key geographic areas and wrong allocation of resources shows that even a strong brand like Toyota has its weaknesses.

This paper examines the Japanese automobile industry, using as example the case of Toyota in comparison with other automobile manufacturers and the way it has retain its competitive position as a multinational corporation in the international context. In order to do so, focus will be directed on management strategies, human resources, development of existing ideas, stability in the foreign market and the role of the government.

main strategy for the North American market is to aim for higher sales, while raising the proportion of locally produced automobiles. Toyota Motor Corp have reached a stage where investments made over the last several years to expand production capacity are beginning to show returns and improved profitability can be expected. Toyota’s goal is to bolster local production through additional investment, and contribute to the regional economy by expanding its operations. At present, our production capacity in North America is approximately 1.25 million units (including our joint venture with GM). However, Toyota Motor Corp plan to boost this to 1.45 million units during 2003.