Star Analysis Of The Competitive Advantage Of Toyota

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 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

For more than 50 years, Toyota Motor Corporation has been one of the world’s leading manufacturers of motor vehicles in the United States. It was born a Japanese company in 1935 and came to America in 1957. Now headquartered in Toyota City, Japan, it employs more than 300 thousand employees globally (Toyota Motor Corporation Company Profile, 2012). In addition Toyota is a global marketing organization. It strategically operates primarily through Japan, Asia, Europe, and North America; but its vehicles are sold in more than 170 countries and regions across the globe (Toyota Motor Corporation Company Profile, 2012). The Toyota brand is traditionally defined by brand attributes such as global leadership, innovation,

Toyota is a leading company, and for over 70 years. It has been expanding business all over the world and

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.

This helped the company to have a competitive advantage for the suppliers opportunity cost. Suppliers were paid incentives for improving the process. Continuous contact with the suppliers helped the company to have control for quality and also the computer aided layouts were dispersed. If the supplier used ideas to reduce cost then profit was being shared with them. This encouraged the suppliers to bring more innovation the process and thus Toyota had a competitive advantage over its suppliers if compared to its

Here in the case to study the competitive advantage of Toyota measures on the following

Toyota is one of the leading vehicle manufactures in the world and has faced some challenges throughout the years. This paper will discuss a key issue that Toyota has faced and how they can utilize communication software to improve the business relationship between supplier and Toyota.

The main aspect of Toyota Company’s value chain analysis is the inbound logistics. Inbound logistics use JIT (Just-in-Time) system of production as it decreases the inventory cost. JIT helps Toyota to optimize their assembling and production process as well as to minimize parts going to waste or getting unused as inventory. Inbound logistics are the goods that the company receives from its suppliers and store for some period of time until the moment when they will be used in the production process. Toyota company does not have and is not able to create own raw materials that are needed for assembling of cars, thus it has to collaborate with a third party.

Toyota was made accomplishment in worldwide procedures. It has an definite motivation to disperse the channels, generation, showcasing and production network viewpoints. Toyota's best generation framework and persistent enhancements are the vital bits of its worldwide system. Idea of Kaizen continues change has engaged the organization to consider the new methods and techniques regardless of in any zone of the organization. Toyota Production System makes a connection between the worldwide automaker to deal with the inventory network framework, stock administration, generation abilities and arranging techniques. This TPS has enabled the Toyota to overwhelm the worldwide vehicles industry. Really the Toyota is situated in Japan yet it has created itself all through the world. Doubtlessly the Toyota is most no doubt understood auto brand of the world. Toyota's business is based upon the mission: Stable long haul development, while taking a stab at concordance with individuals, society and nature" (Toyota Motor Corporation Home Page). Toyota is giving a huge number of occupations in America. Social, financial and social issues have permitted the Toyota to move past the brand value and molded a universal showcasing spot for Toyota and made the progress as a worldwide

Currently recession is prevailing in the market so the global car sale of Toyota is showing a downward trend. Also changes in interest rates, inflation and currency rates can act both as a threat and an opportunity. Inflation rates differ from country to country for instance in Japan the inflation rate is relatively low as compared to USA. The lower the interest rate, the better its for Toyota since the

One factor that adds to the success of Toyota’s supply chain is their relationship with their suppliers and how they do business with those suppliers. Toyota does not simply give their supply contracts to the highest bidder; instead they work incredibly closely with their suppliers so that they can get the highest quality products possible. Toyota uses long-term, just-in-time contracts with all of their suppliers (Winfield & Hay, 1997). Toyota does not engage in any kind of mutual contracts, such as buy-back or revenue-sharing; however, they do take multiple steps to ensure a mutual benefit when they pair up with a supplier. Toyota invests in their suppliers to help them develop products (Liker & Choi, 2004). They also ensure that they share information with their suppliers in a structured fashion. They believe that targeted information leads to results and they ensure that specific communication is relayed to their suppliers at set times and in set ways (Liker & Choi, 2004). Perhaps the most unique aspect of Toyota’s relationships with their suppliers is that they embark on joint improvement ventures together. They set up study groups with suppliers to help both parties learn how to improve operations and send executives and engineers to the supply plants to help them improve processes (Liker & Choi, 2004). These kinds of benefits are described in the contracts Toyota keeps with their suppliers (Toyota Supplier, 2011). The close relationships that

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 assignment gives the overview of the Toyota and Volkswagen. It also explains about their supply chain relationship of those manufacturers. It also gives the advantages and disadvantages of those companies. I have also compared the strategies of Toyota and Volkswagen. I have collected some details regarding the future scope and threats for both the manufacturers. I have given some general statistics of both the companies. Then I have given some future strategies of those concerns.

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.