Toyota Strengths And Strategy

Overview: The Toyota Production System has long been hailed and admired as the source of Toyota’s outstanding performance as a manufacturer. TPS aims to eliminate waste, reduce defects and maximize flow. TPS aims to increase efficiency and productivity by employing a unique production system that cuts costs through continuous improvement. Long term goal is to yield sharp reductions in product development and manufacturing lead times. Toyota want to be the industry best and they stand behind their culture to share the wealth of how they do it.

Toyota Motors Company is multinational Japanese vehicle producer, an enterprise that has it 's headquartered at Toyota, Aichi. Toyota Motors are the biggest world 's producer of the autos about the statistics of 2013 by the quantity of vehicles. Toyota was additionally the greatest maker of the autos in 2012 and has been the initial a car producer that delivered ten million vehicles for each year. It is likewise recorded the most significant assembling organization in Japan of the market capitalization and income. The engines business delivers its vehicles

“Know your enemy and know yourself and you can fight a hundred battles without disaster” -Sun Tzu

Toyota Motor Corporation (TOYOTA) is one of biggest automaker in the world. Main products are a passenger car, truck, bus, RV etc. The company headquartered in Toyota, Aichi, Japan which employed 300,734 people worldwide and was the third largest automobile manufacture in 2011 by production behind General Motors and Volkswagen Group. Toyota is the eighth largest company in the world by revenue (around 200 billion USD) in 2011. The company reported it had manufactured its 200million cars in 2012.

Toyota Motor Corporation is one of the Japanese automotive manufacturer that headquartered in Toyota, Aichi, Japan. The history of Toyota began in 1933 with the company being a division of Toyoda Automatic Loom Works devoted to the production of automobile under the direction of Kiichiro Toyoda, the founder’s son. Toyota Motor Corporation have use code of conduct, corporate social responsibility and sustainability policies for their firm daily operations.

Toyota Motor Corporation is one of the worlds largest vehicle manufactures. It conducts business worldwide and their vehicles are sold in more than 170 countries and regions. Kiichiro Toyoda established Toyota in 1937. Toyota also has other brands including Lexus and Scion. Last year Toyota ranked number 9 on the Global 500 list. Toyota has also been on the Global 500 list for 21 years. Since 2008, when Toyota surpassed American General Motors as the world’s largest automaker, it has remained at the top of the list. In 2014, Toyota had $18.1 billion dollars in profit and a whopping $227 billion dollars in revenue. Toyota has always been a company with a great image. They spend nearly $1 million dollars every hour on research and development. Although the company was founded in Japan, it has created over 365,000 jobs in the U.S. Toyota also ranks as a top 10 company for LGBT employees and top 50 for diversity. On top of supporting diversity and the LGBT community, they have donated $700 million dollars to non-profit organizations.

What were the drivers of Toyota ‘s accelerator crisis? Why was Toyota facing a recall crisis?

Nowadays, due to globalization, local markets have strongly expanded and became part of global markets, which lead to a strong increase in competition between organizations. They now do not only have to compete with other local organizations, but with organizations globally. This makes it necessary for organizations to keep up with the increasing speed of innovation. In order to deal with the increasing global competition, one must distinguish him by taking the importance of diversification seriously and be aware of the importance of creating a strong identity. The famous British psychologist Edward de Bono once said:

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

to meet the expectation of the customers around the World and to be the role model for within the industry as well as community (Global, 2010). The Toyota has four basic aims including: 1. To provide World class quality and services (Global, 2010). 2. Develop the employee’s potential based on mutual respect, trust and cooperation (Global, 2010). 3. Reduce cost through deduction of waste and maximize profit (Global, 2010). 4. Develop flexible standard based on market needs (Global, 2010). The following are the manufacturing principles implemented by Toyota: Just-in-time The Toyota production system meets the customer demand professionally and without delay by linking all production activities to real market place and demand. Just in time production

Toyota was founded in 1937, as an off shoot of Toyoda Spinning and Weaving Company. Sakichi Toyoda invented the first power loom which revolutionized the country’s textile industry. With his son’s help he created the first automatic loom in 1924. Kiichiro was the innovator of the family and as such he would go to travel to the U.S.A. and Europe, which introduced him to the automobiles industry. With this new knowledge Sakichi sold his loom business and put the money into the first Toyota truck which was built in 1935, and the first passenger car in 1936. Thus begun the beginning of the Toyota Motor Corporation.

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 Motor Corporations became the largest automobile manufacturer in the world, for the first time in 2008. Its nearly 600 subsidiary companies are involved in production of automobiles, commercial and industrial vehicles and automobile parts. Toyota industries Corporation were discovered in 1933 by Kiichiro Toyoda to manufacture and to sell the automatic looms, which the founder had invented and perfected. Since then, Toyota has promoted diversification and expanded the scope of its business

Toyota Motor Corporation (Japanese Toyota Jidōsha KK) became the largest automobile manufacturer in the world for the first time in 2008. The company has acquired over 600 subsidiary companies; they specialize in the production of automobiles, auto parts, commercial and industrial vehicles. In 1936 they produced the first Toyota a Model AA Sedan, the company rapidly began to grow but, was faced with an economic crisis after World War II which forced them to stop the production of automobiles. Toyota managed to reopen production factories by the 1950s, they began to research and study on how to improve the production of cars, in fact; they used a lot of fundamental ideas from the Ford Motor Company to develop their production factories and of course, made the designs more efficient. In 1957 Toyota Motor Sales, U.S.A., Inc., was established, and they released the Toyopet sedan the following year which was a flop due to cost and performance. 1958 a utility vehicle Land Cruiser ended up doing much better in sales than the Toyopet. After going back to the drawing board, the Toyota Corona released with became a big hit in the US. Toyota rapidly began to expand the company merged with General Motors Corporation in 1986 which started US production of Toyota brand cars.Toyota has procured plants and distributors worldwide, the expansion in other industries includes manufacturing of rubber and cork materials, steel, synthetic resins, automatic looms, cotton and woolen goods.

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.