Toyota 's Comparative Benefits Over Their Competition

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Toyota is the world’s largest car manufacturer beating out Volkswagen, BMW and Daimler. They had double digit gains in April of 2014 delivering an impressive 13.3 percent more automobiles than April of the previous year. Despite the recall debacle that happened, they have been able to hold the No. 1 spot this year (Le, 2014). Toyota has numerous comparative benefits over their competition. They have a solid working model that produces high margins, a strong international brand that is known for quality and a business model that permits them to produce multiple car models for a very low amount of money while doing it at a fast pace and producing the best quality. The competition has learned that working with fewer platforms comes with the…show more content…
If that happens, the company will ultimately lose market share and lose its position as the number one car maker in the world. Toyota has said that sales would decline this year down from 10.23 million cars sold in 2014 to 10.15 million this year which would probably allow Volkswagen to take over the top spot due to developing economies which would allow it to take over at the top (AFP, 2015).
Provide a rationale for the U.S. publicly traded company that you selected, indicating the significant factors driving your decision as a financial manager.
As a financial manager my job is to research and advise my clients on the best possible companies to invest their money in by making sure that the company that they select has a strong fundamental system in place. Organizations that have strong financial details are the businesses that make for good investments. These firms trade very selectively on the market and they are known as blue chip companies and since they are very in tune with the market they can easily be considered as a good investment portfolio. Toyota has been a very strong company in its financial fundamentals. Toyota Motor Corporation is one of the stocks I would recommend to my investor as a finance manager to buy and maintain since they have been in the spotlight due for many good things and also due to the plans they have for expansion which includes
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