The Advantages and Disadvantages of Toyota

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1. Toyota has a number of different strengths that it uses to compete. The first of these is the company's systems and management. Toyota has historically excelled at management, in particular production management. The company was a pioneer of what became known as total quality management (TQM). Toyota's ability to deliver vehicles that were of higher quality and lower price than those of other automakers was critical in winning market share around the world. Another strength of Toyota is that the company generally has a great reputation. Although this reputation has taken a few knocks in recent years, Toyota is generally considered to have very good quality for a mainstream automaker. The company's reputation allows it to enter new markets more easily, and to work with suppliers and channel partners more easily. In addition, consumers recognize the company's reputation and this wins the company additional sales, because its products make the short-list of more consumers. Ultimately, this strength has helped Toyota to become a global power in the automobile business. Toyota also benefits from strong ties in Japan. Japan provides a strong home market for the company, in part due to the loyalty of Japanese consumers and in part due to tariffs on automobiles made elsewhere. Toyota's success also gives it strong connections in banking, government and all other areas that might affect its business. Favorable treatment from governments and banks in particular can help the

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