Toyota Competitive Strategy

Nowadays, businesses endeavor to achieve a competitive advantage and so an outstanding performance by applying different strategies and examining various strategic analyses. Key role for this strategy is the manager’s contribution, as he is the one to defy the company’s objectives. The manager is responsible in order to exploit the firm’s available resources and strengthen its competencies in order to produce competitive goods and services. The resources and capabilities are among the fundamental sources a manager can use, when he structures the strategic management.

Businesses continually adapt to a changing environment to maintain their market position (Appelbaum, Habashy, Malo, & Shafiq, 2012; Biedenbacha & Soumlderholma, 2008). Change is inevitable considering the current rate of technological advancement and the growth in global competition (Appelbaum et al., 2012; Armenakis & Harris, 2009; By, 2007). Increasing competition and the need for strategic flexibility and globalization is affecting almost every organization today, regardless of size, market, focus, and so on (Jaros, 2010).

There are many different organization that uses cost leadership, differentiation and innoviation strategy to achieve an operational excellence but before listing them and explaining how they use them to achieve operational excellence it is important that we explain these different strategies.

As a successful Organizations, it should do to achieve strategic competitiveness and earn above-average returns.(hanson,2011) Nowadays organization may meet rapid, volatile, discontinuous change that makes strategic management further challenging and multifaceted because there

(Dennis,2007). Over next 30 years, Taiichi Ohno solved numerous problems related to lean production in order to push his system through Toyota. Nowadays, the Toyota Production System (TPS) is used in accordance with “lean manufacturing” across the world (Tapping,2007). But today we face the same intimidating

The strategic management process requires the firm to first perform external and internal analysis to define the strongest resources, capabilities, and core competencies the firm possess to input into its business strategy. The results from the analyses are applied to the vision and mission to be followed by the firm’s workforce. Once it is clear to everyone what the objectives are, the firm is ready to take action to achieve its goals of strategic competitiveness. However, to be successful a company must maintain a constant dynamic of the strategic process to deal with changing markets. The key is for the firm to continuously develop strategic inputs.

Cars are an indelible part of the American lifestyle and no company represents that better than the Ford Motor Company. Ford’s “halo car” is the Mustang: a rumble, 0 to 60 in 4.3 seconds, and the iconic pony-car look. The driver knows when they are in a Ford Mustang. Incorporated in 1903, the Ford Motor Company is one of the largest producers of cars, trucks, and SUVs in the world, distributing automobiles across six continents (Reuters, 2016). The Ford Motor Company has been on the NYSE so long, its symbol is simply: F.

One thing can be sure that rapid, volatile and discontinuous change is focusing on strategic management process operation. However, it is difficult to predict accurate future development (Thompson & Martin, 2010). Because every company has their own situation, so that managers have to consider the change occurring in the external political, economic, social and technological environment and do internal and external analysis according to the particular situation. Some models can be applied by managers to assess their companies’ external environment to improve the current business strategies, and then have more fit in the global market changes. When the companies fail to respond efficient strategic management, they also fail to facing the threats from external environment changes. Moreover, under the rapid, volatile and discontinuous change global environment, strategic management was built and developed in different way comparing with the last decades. For instance, to manage the complexity, dynamism and unpredictability environment is the topic in strategic management (Ambrosini, 2009). Additionally, analysis of SWOT had been combined into the operating strategic management because of the discontinuous change occurring in the world.

Environment factors:  The exhaustion of fossil energy sources has placed an enormous pressure on Toyota in developing replacement or hybrid engines. According to the forecast of trustworthy organization, oil sources will be exhausted in the next 50 years, gas in 60 to 70 years.  Disasters has significantly influenced on automotive industry due to revenue and performance loss caused by them.  Environment pollution rate should be involved in investment decision making procedures of car manufacturing companies since it can move the taxation, tariff and policies of governments. Legal factors:  Automotive industry is subject to various rules and regulations as well as legislation. The legislation covers areas like competition law, consumer protection and taxation, intellectual

“There is nothing that can’t be done. If you can’t make something, it’s because you haven’t tried hard enough.” said by the founder of Toyota Kiichiro Toyoda. Toyota is a car company that attract and attain customers with high-valued products and services and the most satisfying ownership experience in America. In addition, Toyota Motor Corp is harboring big ambitions to become to become a significant player in the growing market for robots the help elderly people and other people get around in everyday life. A SWOT analysis is a study undertaken by an organization to identify its internal strengths and weaknesses, as well as its external opportunities and threats. Toyota conducted a SWOT analysis to audit its company and its environment in order to make marketing decisions to maintain the value of its products.

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.

Toyota positioned itself in the American auto market and defined its organizational strategy as high quality, innovative engineering and producing some of the safest auto mobiles on the road, and in one fell swoop, the integrity and quality of their vehicles were not only brought into question, but many consumers looked elsewhere for their automotive needs. The Toyota group and its subsidiaries has had a prominence in Japan for years, but the Organization of Arab Petroleum Exporting Countries (OAPEC) embargo of 1973 allowed Japan to bring its kaizen work ethic to the US and begin to gain an automotive presence that allowed Toyota to compete with America’s big three: Ford, GM and Chrysler. The big three controlled the market up until this point and it would take some time but by 1980 Toyota was the fourth leading manufacturer in the US and poised to gain ground and by 2008 Toyota, Honda and Nissan made prolific jumps with around 32% of the market share. Unfortunately the economic recession slowed all manufacturers’ growth but trends such as forty-three-year-old Hyundai has surpassed 107 year-old Ford in global sells would mark the end of the big three reigns, with GM and Chrysler taking part in the controversial automotive bailout in 2009. This also harkened back to the belief those automakers had little vigilance on the market and their long term control left them vulnerable to better organizational strategies. Market growth in the US had become stagnant by 2008 so

Although there is no way to predict the next step for organizations in the future, Toyota, located in Japan, was established in 1937 and began making vehicles for the military during World War II and has been successful in keeping up with the changes. Nevertheless, researchers have attempted to adapt the “product line” method of leadership in order to obtain the same results of business success. The success of a business is in the organization’s behavior demonstrated through individual, group and organization’s culture. Second to a business succeeding in profiting while spending the least amount, the definition of product development is finding ways to improve and keeping the company current

Toyota is an industry giant and a global innovator in vehicle manufacturing. The company has a customer focused orientation that has served them well. The company is responsive to consumer needs and delivers them with both quality and safety built into their vehicles. One trend that was identified within the company is that Toyota will work to be more responsive to consumer needs in smaller geographical locations. For example, car buyers in India may not have the same preferences as those in the U.S. market and as a consequence a more regional strategy could assist them in developing both markets.

Strategic management patterns of every organization may differ from what is obtainable in another; while there may be areas of similarity, certain aspects are uniquely structured out to suit the operation of the organization in question. The ability of an organization to compete successfully depends on how unique its strategy is. Strategic competitiveness is achieved when a firm successfully formulates and implements a value-creating strategy. When a