Strategic Choices Made by Toyota

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Strategic Choices Made By Toyota Module 4-Case Study [Pick the date] Student Name Back in 1980s, Micheal Porter's coined his four generic strategies which provided a new and extensive frame of looking at the way companies are operating and can gain competitive advantage over their rivals by using strategies best fit for their culture and industry structure. Porter suggested that a firm can gain a major market share by either having a cost leadership strategy, product differentiation or a focus strategy by serving to a niche market and capitalizing either on cost or on differentiation. Considering Toyota's model in the perspective of strategies defined by Porter; one can asses that it has devised a system of strategies based on cost-leadership and product differentiation. Toyota focuses on operational excellence. In its management philosophy, the Toyota Way, that is the source for its competitive advantage, principles related to eliminate waste, to get it right the first time, and to improve continuously are emphasized (Liker; 2004). The era of 1945-1955 was a period in which Toyota showed immense growth. It started with the production of low cost Toyopet (a car with various models formed in later years) and moved on to making rough trucks named Land Cruiser and a true Luxury car called the crown. While manufacturing these models, Toyota mainly capitalized on its strength of having low production cost and also on product differentiation where it kept on

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