How Toyota enter into global market

As mention above section there are many methods to enter to global market. TOYOTA is the
leading company which use these methods to enter into global market. In this section going to
evaluate what kind of mechanisms they use and how they practically adopt to their operations.
Prior to evaluate how Toyota enter into global market it better to understand its profile. Toyota
Motor Corporation is Japanese company in the Industry of Automotive. Founded August 28,
1937; 78 years ago, and Founder was Kiichiro Toyoda. Toyota is the seventh largest company in
the world and the second largest manufacturer of automobiles, is set to surpass General Motors
(GM) in 2008 and become number one in the auto industry. With over 50 manufacturing plants
in 28 countries. Toyota Motor Corporation produces vehicles under 5 brands, including the
Toyota brand, Hino, Lexus, Ranz, and Scion.
We suppose this is the best example to show global market and international market. Because
Toyota is the world standard of globalization, and its policies and practices are imitated
worldwide.
When concern global market approach of Toyota. Company use majority of methods that are
existing for global market. That can be define as green flied investments, acquisitions, joint
ventures, outsourcing & offshore. Etc.
Below we mention some practices that use Toyota to enter to global market.

Investments

This is the main approach Toyota use to enter to global market. They already invested in 28
different countries as many of them were green field investment. That means Toyota enter to
Particular County as totally new investor. When consider overseas investments North America
takes the lead. Toyota currently has 13 operating plants including largest operating plant in
overseas. Apart from North America Toyota has plants in UK, India, china, Brazil.
Currently Toyota speed up their overseas investment, because company want to extract benefits
of global marketing. In recent past japan yen appreciate therefore company try to move out and
expand global production as they can. As a result of that announced an investment of an
additional US$101 million in Cambridge plant, US$81 million in its Woodstock plant, Toyota
also has been expanded investment in China and Brazil and currently Toyota North American
plants produce 1.8 million cars per year that shows how strongly Toyota adopt globalization in
to their operations.
Here are the Toyota fully owned plants around the world that aids to further explain about how
Toyota practice globalization for their operations. The Toyota manufacturing factories are
situated in Argentina, Australia, Belgium, Brazil, Canada, Colombia, South Africa, France,
Indonesia, Japan, Mexico, Philippines, Portugal, Russian Federation, Thailand, Turkey, United
Kingdom, and United States.

joint ventures, licensed and contracts

After evaluating green field investments when searching what are the other options that used by
Toyota to global marketing, we able to found out Toyota used joint ventures, licensed and
contracts to collaborate with other countries in the world as well.
These three approaches are more or less same when its come to Toyota. The use these tools to
open door to global market. Apart from investments Toyota did some interesting investment to
create joint ventures and contracts. Here we try to provide some examples how Toyota does this.
Toyota holds a 51.2% stake in Daihatsu, joint-ventures with GAC Toyota and Sichuan FAW
Toyota Motor in china, Toyota Kirloskar in India and TPCA in the Czech Republic. These joint
ventures will create appropriate basis for global marketing as well. Toyota not only depend itself
but also they look for other ventures to enter into global market. As a result of the Toyota able to
build largest conglomerates in the world. That also prove how Toyota successful in global
marketing and international marketing.
When its come to evaluate joint ventures of Toyota, they already establish J/V in 2.1 Czech
Republic, France, Ghana, China, Pakistan, United States, India, Zimbabwe, Vietnam, Hino
Motors.
Following picture shows how Toyota acquire global market.

Red Japan

Light Blue - Regional headquarters

Green - Official dealership(s) present.

Dark Blue - localized manufacturing plants

Blue - Localized manufacturing plant(s)

Outsourcing
Japanese companies such as Toyota, unlike American companies, outsource over 70% of their
vehicle content. To begin with, outsourcing on a continuum is the new corporate reality
maintained that companies will be more likely to outsource a function if there are multiple
reasons for doing so.Such multiple reasons are as follows:
a) Acquire new skills and better management,
b) Enhance controls,
c) Focus on strategy and core functions,
d) Avoid major investments,
e) Assist a fast-growth situation,
f) Handle overflow situations
g) Improve flexibility and ratio.
Toyota though understands that customers are expecting reliable quality regardless of who makes
the engine, radio, seat, etc of their cars. Nevertheless, outsourcing does not absolve Toyota or
responsibility. Toyota is known to have outsourced engines as well as software and hardware.
The primary reason why Toyota outsources is that Toyota is a master of cost reduction internally
and expects its suppliers to master this discipline as well. Toyota makes use of functional
outsourcing which is thrusting of certain services towards partners or providers. The advantages
of functional outsourcing for Toyota are superior leveraging of market, redundancy-capable and
maintenance of outsourcers control over processes though this process can result to a nonexistence of end-to-end management.
Partnering with Toyota, Toyota demands of timeliness, innovation, quality and cost reduction.
What Toyota offers its suppliers is to innovate the product design through value engineering.
Because Toyota responds to supplier concerns with integrity and capability, it has established a
great level of professional trust with its suppliers and also through developing a sophisticated
system that encompasses people, processes, tools and technology and extends to all partners in
lean enterprise. Although reducing costs is critical for Toyota, quality must not be sacrificed.

Acquisitions

During the year ended March 31, 2004, Toyota acquired additional ownerships in the
following four contract manufacturers, Toyota Auto Body Corporation, Kanto Auto Works LTD,
Central Motor CO.,LTD, and P.T. Toyota Motor Manufacturing Indonesia. All of them are
primarily engaged in manufacturing Toyota brand vehicles. Until the date of each acquisition,
Toyota accounted for its investments in these contract manufacturers by the equity method
because Toyota was considered to have significant influence of these companies.