Strategic Choices Made by Toyota

“Generic strategies” was first set out by Michael Porter in 1985 in his book “Competitive Advantage: Creating and Sustaining Superior Performance.” Academic work in the field of strategic management, Porter (1980, 1985) typology of general competitive strategies: cost leadership, differentiation and focus. The three virtually divided into two basic categories. Focus strategy requires a niche or narrow segment concentration. But Porter said, can cost leadership in the success of this strategy or differentiation to achieve. Therefore, cost leadership and differentiation are two basic strategies Porter 's typology. These two topics are discussed in this article.

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

Workers have (over the years) made millions of suggestions on how to improve the production of cars.

The diversification of customer needs results in the competition more and more intense. Thus, both competitive advantage and core competency are the effective weapons to come after competitors in a globalized market. A lot of well-known companies rely on a resource-based strategy to develop through technologic assets and intellectual properties like Google, IBM, and Apple. However, such strategy is not good enough to deal with challenges through remaining competitive strategy in changing business environment. There are two reasons that cause business environment changing fast that are the inner expansion of the organization and replication of competitors such as Xiao MI. Therefore, Strategic management gives play to an important function incorporating

Toyota gains its competitive advantage and brand image through their low cost but quality products.

Toyota as a company stated in 1918 and back then Toyota did not make cars, but as a spinning and weaving company. The founder was Sakichi Toyoda, before the company went public Sakichi change the name to Toyota because it sounds better than Toyoda . At around 1933 the company while still in the weaving business also began to focus on automobiles and produced its first Type A Engine in 1934, which was used to produce Model A1 passenger in May 1935 and the G1 truck in August 1935. Production of the model AA passenger started in 1936. The vehicles that Toyota produce was extremely reliable and by 1948 Toyota had produced more than 110,000 vehicles domestically. The Toyota Motor Sales U.S.A., Inc. Mission and Vision Statements are as follows:

Toyota Motor Corporation is a well-known Japanese automotive manufacturer which headquartered in Toyota, Aichi, Japan. It was founded by Kiichiro Toyoda in 1937, as a division of his father’s company, Toyoda Automatic Loom Works to create automobiles. Three years earlier, in 1934, while still a department of Toyoda Automatic Loom Works, it created its first product, the Type A engine and until 1936, its first passenger car, the Toyota AA. Toyota Motor Corporation produces vehicles under 5 brands, including the Toyota brand, Hino, Lexus, Ranz, and Daihatsu. In March 2014, this multinational corporation consisted of 338,875 employees worldwide and, as of February 2016, was the 13th-largest company in the

2010 Camry RECALLED Toyota had aimed to sell 10 million vehicles a year by 2010 but suffered a severe set back when it t was stung hard by the global financial crisis in 2008 and 2009. Toyota sold 7.56 million units in fiscal 2008-2009—enough to outperform GM and make Toyota world’s largest automaker but 1.34 million less than the previous year. Toyota had originally forecast sales of 9.85 million in 2008 and 10.4 million in 2009. It sold 7.81 vehicles in 2009, down 13 percent from the previous year.

The manner in which firms are able to compete is most commonly categorized by implementing Michael Porter’s strategic typologies. Porter’s strategic theory has been the most widely accepted strategic approach used by fellow academics (Kim and Lim 1988; Bordean et al 2010). Porter proposed three generic strategies namely: cost leadership, differentiation and focus strategy. Warszawski (1996) later introduced a competitive strategy

Toyota Motor Corporation is the leading automotive company in Japan, headquartered in Aichi Prefecture, Tokyo. Toyota is one of the strongest competitive companies and is the top ten automotive companies in the world. They may be the second largest supplier of cars in the world, but they are the most profitable company in the world. The firm has fifty-four overseas manufacturing companies in twenty-eight countries and regions that employ about three hundred and thirty-eight thousand people worldwide as of 2015.

We will start the external analysis with the PESTEL analysis of the automotive sector followed by the Porter’s five forces analysis and we will end by having a look at the key competitors and competitor pricing.

The history of Toyota goes back to 1937 when Toyota Motor Co., Ltd. was established in Japan. The company had been doing well and wanted to expand their operations into other countries. On October 31, 1957 Toyota Motor Sales, U.S.A., Inc. was formed. They established their headquarters in Hollywood, California and began selling vehicles in 1958. In the first year, Toyota sold 287 Toyopet Crown sedans and one Land Cruiser. Within the first 10 years of business the company began to develop a reputation in the United States for having high quality vehicles that were also reliable. By 1966, they had sold more than 20,000 vehicles and by 1967, Toyota became the third-best-selling import brand in the United States. Toyota continued to grow in

Toyota also has a strong portfolio of prestigious brands such as Prius, Camry, Toyota, Lexus, Corolla, Land cruiser, Hilux and other brands. In fact, the annual Brands Top 100 ranked Toyota a leading brand. This strong branding and market position allows Toyota to market its product with premium prices and high profit margins.

Since 2009, Toyota Motor Corporation has struggled with defects in its vehicles (Hamilton, Kuwahara, & Sandlin, 2013). These defects have resulted in lawsuits and increased attention from the National Highway Traffic Safety Administration (NHTSA) (Hamilton et al. 2013). In attempting to counter the damage to their reputation, the company made public statements which were poorly-received (Hamilton et al. 2013). The company’s mistakes are well-documented, and can be reviewed to discern more effective courses of action for others facing similar situations (Hamilton et al. 2013).