Critical Success Factors Analysis Of Toyota

Ford’s market share is higher because they are the second largest automobile company in the U.S and fourth largest in the world. Moreover they are the fifth largest vehicle seller.

Today, Toyota is the world's third largest manufacturer of automobiles in terms of both unit sales and net sales. It is also the largest Japanese automotive manufacturer, producing more than 5.5 million vehicles per year, equivalent to one every six seconds. See Appendix 1 for a list of its guiding principles. Appendix 2 depicts excerpts from the company’s 2000 annual report showing their main goals for that year. The company has 12 manufacturing plants in Japan and approximately 54 manufacturing companies in 27 countries throughout the world. These plants produce vehicles and components under the Lexus and Toyota brand names and employ about one quarter of a million people worldwide. In total Toyota vehicles are marketed and sold in more than 160 countries and regions with the automotive business, including sales and finance of the vehicles, accounting for more than 90% of the company's total sales. Appendix 3 shows worldwide sales and appendix 4 shows the models produced in North American Toyota plants. North Americanization of Toyota Since the late 1980’s Toyota had made several moves that showed their commitment to what management called the North Americanization of the company. The idea was to increase car sales in the lucrative North American market by also introducing manufacturing plants that produced parts and assembled whole vehicles for

* Toyota’s Camry and Corolla have been the top-selling cars in their respected categories; in the past eight out of nine years. Also, Toyota produces the globe’s best selling hybrid car, the Prius – which by 2010 had surpassed two million sales worldwide.

Toyota Motors Company is multinational Japanese vehicle producer, an enterprise that has it 's headquartered at Toyota, Aichi. Toyota Motors are the biggest world 's producer of the autos about the statistics of 2013 by the quantity of vehicles. Toyota was additionally the greatest maker of the autos in 2012 and has been the initial a car producer that delivered ten million vehicles for each year. It is likewise recorded the most significant assembling organization in Japan of the market capitalization and income. The engines business delivers its vehicles

In order to focus on the international car market they need to have world class standards. They should be competent enough like managing the supply chain so that they could integrate products and services both upstream and downstream

Also in these, sponsorship has been contributing to sale greatly. For example, the company has been sponsoring soccer FIFA World cup, it told that 2billion people watched that games and broadcasted to around 200 countries. In addition, the company has been joining a motor show every year, and then announcing new product and new technology. Toyota conducts a lot of promotion activities, there would be few people who do not know the name of Toyota.

Competition is good for producers but better for consumers, more competition in the market means more: ideas, channels of distribution, market stability and competitive (lower) prices for consumers. Ultimately, healthy competition forces producers to offer better products and services at lower prices. Automobiles provide people with “…aspirational value in addition to a basic mode of transportation…” (Reinhardt, Yao & Egawa, 2006) consumers make purchasing “decision based on the styling, color, and concept of the cars in addition to functions and pricing” (Reinhardt, Yao & Egawa, 2006). So far, TMC has been trying to catch up with Honda and Nissan in the ‘innovative’ department. Let’s not forget the criticism the company previously faced for offering its customers “…proliferation of look-alike cars…and following rather than setting a trend” (Reinhardt, Yao & Egawa, 2006).Since, Mr.

world leader in car sales for years. However in 2007, Toyota passed GM in market share to

As I wrote earlier, Ford, General Motors and Chrysler are called “big three”. They used be the best of best and still are. But the appearance of those companies such as Toyota, Honda, Nissan, Volkswagen and FIAT make the industry more competitive. Now, we (consumer) have more choices which car to buy and that 's how the industry become more and more competitive. According to the Motley Fool, Toyota sold 10.23 million vehicles in 2014 and ranked number one (Rosevear, 2015). Volkswagen group ranked the second, it sold 10.14 million vehicles in 2014 (Rosevear,2015). Finally, General Motors the company from the United States ranked the third place, it sold 9.92 million vehicles worldwide in 2014, falling to third place in a race that it led as recently as 2011. But GM is under different management these days, and CEO Mary Barra is focused much more on the company 's profitability than she is on its sales rankings. Given that GM 's profits have trailed its global peers ' for years, that 's absolutely the right emphasis now (Rosevear, 2015). And Ford

Global competition brought about less market share for U.S. automobile manufacturers and threatened company profits as more foreign car brands entered the U.S. market. The total market share of General Motors fell from 28.2% in 2000 to 17.6% by 2014. The other two of the Big Three car manufacturers also lost U.S. market share during this same period. Ford fell from 24.1% to 14.7%. Fiat-owned Chrysler now holds only 12.7% after having 15.7% of the market in 2000.

Ranking them by Market Share this is how the top ten stood by the end 2013: General Motors (GM) 17.9%, Ford 15.9%, Toyota 14.3%, FCA US 11.5%, and Honda 9.8%, Nissan 8.0%, Hyundai 4.6%, VW 3.7%, Kia 3.4% and Subaru 2.7%. (AIADA, 2014)

“USA Today reports that there were roughly 210 million licensed drivers in the United States as of 2010.”(ask.com) Most people have at least one car, but numerous people drive multiple cars making the consumer market for automobiles very lucrative if the certain automobile manufacturer can obtain any sort of brand loyalty. The automobile industry is led by four main powerhouses in the United States. As of May 2015, General Motors has a 17.7% market share, Ford has a 15.1% market share, Toyota has a 14.5% market share, and Chrysler has a 12.5% market share so far this year. Worldwide, these numbers vary, but General Motors and Toyota are the leading manufacturers by multiple percentage points.

An oligopoly is defined by Keat and Young (2009) as, “A market in which there is a small number of relatively large sellers.” The auto industry is considered to be to an oligopoly because there are a large number of sellers, thus leaving the consumer only a certain number of companies from which to purchase an automobile. The major manufacturers include Ford, Chrysler, General Motors (GM), Toyota, and Renault/Nissan.

Of the six major automakers with a presence in the US, Nissan is easily outpacing the other five. General Motors, Ford, Fiat Chrysler, Toyota and Honda were looking on in envy last year as Nissan posted double-digit sales gains. Even as the market begins to pull back slightly, Nissan continues to outpace the pack.

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.