Toyota Case Study (Case 4). Toyota: Origins, Evolution, and Current Prospects

1007 Words Mar 29th, 2011 5 Pages
The typical mass-production system established by Henry T. Ford in the early 1900’s is based on the idea that there would be an assembly line that was to produce a limited product line in massive quantities to gain economies of scale. To do this the company needs to stretch its fixed costs that are involved in setting up a specialized machine and the way to do this produce a massive amount of that part of the equipment, store it in warehouses, and change the equipment to produce the next needed part. In doing this, the employees do the same job continuously and this increases in the likelihood possible errors because without the incentive to be efficient, employees will not be careful. Also, you have to pay managers and foremen to oversee …show more content…
A database compiles all of the customer preferences from style, color, process, luxury features, etc. The information is compiled, sorted, analyzed, and implemented into action on an assembly floor. The implications are that Toyota is going to the customer, changing the way market is done and how effective it is, and the need for precise research and development to take to customer and chart their reactions.

The basis of Toyota’s competitive advantage is efficient production at low costs, but not conceding by way of quality. Toyota has mastered the way of production on the assembly line without producing large inventory amounts. However, relationships not only with suppliers, but with the customers help establish loyalty and the need to want to give feedback. Toyota’s success most certainly can be imitated; however, U.S. companies typically do not do business in this manner. Toyota simply imitated what leaders in the industry were doing when they entered the market, studied their competition, and collaborated to recognize implement new changes. It is all about trial and error, focus, and team-work; all qualities the Japanese businessmen are known for.

Toyota will be able to establish their competitive advantage in the future simply because as their competitors continue to innovate and perform, Toyota is continuing to do well. Toyota achieved its goal of owning at least 15% of the market share and is now the leading car manufacture internationally. Toyota is

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