BY: Khalid Al-Hedary TOYOTA-ALJ KSA

Automaker Market Leader


Automaker Market Leader Agenda
Leader’s Profile & Facts TOYOTO NETWORK / Distribution Products & Services 2008 Market Share Competitive Information Financial Performance Culture Leadership Strengths Concept TOYOTA Production System Innovation Award Offensive Strategy Defensive Strategy Target Customer Is TOYOTA Market-Based?


Leader’s Profile & Facts

Toyota Motors is 70-years old, established on August 28, 1937 in Japan. Toyota became the world's largest automaker in the first half of 2008, with sales of more than 4.8 million cars and trucks, compared with 4.54 million vehicles for General Motors Corp TOYOTA ranked 5th of the world's largest corporations in the 2008 Fortune Global 500. TOYOTA ranked 1st of the world's largest automaker corporations in the 2008 Fortune Global 500 1st Overseas production starts in 1959 (Brazil) Has 53 overseas manufacturing companies, in 27 countries/regions. Has 168 distributors sell vehicles in more than 170 countries/regions. Number of employees 316,121 More than 8,500 Millions units produced. More than 8,900 Millions units sold. 3

TOYOTO Network / Distribution


TOYOTO Network / Distribution


Products & Services 2008
Passenger Vehicles, diesel & gasoline engines, car airconditioning compressors, foundry parts, electronics components.

Materials handling equipment:
Counterbalanced lift trucks, warehouse trucks, automated storage and retrieval systems, truck mount aerial work platform.

Transportation services, logistic planning, operating of disruption centers, collection and delivery of cash and managements of sales proceeds and secure storage.

Textile machinery:
Air-jet looms, water-jet looms, ring spinning frames

World Automobiles Market


Market Share & Competitive Information


U.S Market Share
U.S.Market Share - May-08
GM Toyota Ford Chrysler Honda Nissan Hyundai BMW Volksw agen Mercedes

BMW 2.3% Volksw agen 2.2% Mercedes 1.8% GM 19.3%

Hyundai 5.6% Nissan 7.2% Honda 12% Chrysler 10.7% Ford 15.4%

Toyota 18.4%


Competitive Information
Automaker Profits Ranking
Toyota Volkswagen Daimler Honda BMW Nissan Fiat Hyundai-Kia Peugeot Ford GM

15,042.5 B$

15 5.6 5.4 Toyota 5.2 4.3 4.2 2.8 1.7 1.2 -2.7 Volkswagen Daimler Honda BMW Nissan Fiat Hyundai-Kia Peugeot Ford GM -38.7

15 10 5

BillionnUSD M illio $

5,639.3 B$ 5,446.3 B$ 5,254.2 B$ 4,278.8 B$ 4,222.9 B$ 2,673.2 B$ 1,722.3 B$ 1,211.4 B$ -2,723.0 B$ -38,732.0 B$

0 -5 1

-10 -15 -20 -25 -30 -35 -40 -45

Profits Rankings - Fortune Global 500


TOYOTA Financial Performance Report 2008


Revenues & Expenditure

Net Revenues
300 255 280 224 184 143 161 165 198

Capital Expenditure
18 16 14 12 10 8 6 4 2 0 16 16 16

Million USD Billion USD

Million USD Billion USD

250 200 150 100 50 0 2000 2001 2002 2003 2004


















TOYOTA Financial Data 2007
Source TOYOTA website


“A culture of quality people working together with shared Toyota Values to continues improve”
Developing and motivating their people to drive excellence throughout the production process Humility, because without this culture, team member will not be willing to accept that the current way is not the best. (ego is barrier for improvement & Change) Continues improvement through elimination of waste Organizing all jobs around human activity in the work place, creating an efficient sequence called standardized work Quality is their top priority. Work aggressively to increase quality by identifying the root causes of defected.


Competitiveness is not about competing with others. It is about improving yourself




Katsuaki Watanabe President

Fujio Cho Chairman

Since its founding, our company has been aiming to enrich society through car making. Our goal is to be a "good corporate citizen" constantly winning the making trust and respect of the international community. Continuing in the 21st century, we aim for stable long-term growth, while striving for harmony with growth people, society and the environment.
Under Toyota's Guiding Principles, we practice openness and fairness in our corporate activities, strive for cleaner and safer car making, and work to make the earth a better place to live. We would like to thank everyone for their

continuing support.


Strengths Contributing to TOYOTA Leadership
TOYOTA Production System is always improving…..
“Philosophy of complete elimination of waste”


Strengths Concept
Jidoka – Highlighting of problems Just-in-Time – Productivity improvement - Making only "what is needed, when it is needed, and in the amount needed!

- Quality must be built in during the manufacturing process!

If a defective part or equipment malfunction is discovered, the machine concerned automatically stops, and operators stop work and correct the problem.

Producing quality products efficiently through the complete elimination of waste on the production line - In order to deliver a vehicle ordered by a customer as quickly as possible, the vehicle is efficiently built within the shortest possible period.

TPS implementation advantages
Make what the customer needs, when it is needed, and in the right amount Minimize inventories Separate machine work from human work and fully utilize both Build quality into the process and prevent errors from happening Reduce lead-times to allow for rapid, flexible scheduling Produce a high mix of low volume products efficiently

Toyota has introduced new ideas & technologies which
enable them to lead the innovation among others competitors. Example Hybrid gas-electric vehicles. Advanced Parking Guidance System. Eight-speed automatic transmission. Four-speed electronically controlled automatic with buttons for power and economy shifting.


Toyota Prius: no.1 in J.D. Power and Associates’ customer satisfaction index study. The all-new Toyota Corolla has been awarded a maximum five-star safety rating for adult occupant protection in the highly regarded Euro NCAP tests Toyota has achieved the premier position in overall customer satisfaction for the fourth consecutive time, according to the J.D. Power and Associates Germany Customer Satisfaction Index (CSI) Study.




Offensive Strategy
Toyota aggressively marketed their cars to Americans as being fuelefficient, environmentally friendly, small size and having better build quality than other Brands. In the 1980's they had people tell the story of hitting 100,000 miles in their Toyota while other different cars were died at 80,000 miles. Toyota found that many of their cars were going 200,000 miles. That was a huge marketing success and it didn't even cost much money. (Building a Quality Brand Strategy). Now TOYOTA team is improving by concentrating on being a "green" company that cares about the environment. Diversity in their products which maximize market share, profitability of the company as all the society sectors (Youth, Men/Women, rich) are being served with products that are under their convenience. 22

Defensive Strategy
Overseas production for reducing labor cost. Building a Huge Dealers network overall the world, that’s made their products reachable for all around the world. Built the best system (TOYOTA Production system-TPS) that organizes manufacturing and logistics for their automobile manufacturer, including interaction with suppliers and customers. Their system has proven its effectiveness through the past and present. And Now TPS system being studied & followed by other automakers. After many years of the excellence, TOYOTA brand become known in selling a high quality, low maintenance, reliable and fuel efficient vehicles with widely available spare parts. By the excellent reputation that TOYOTA has built through the past, their cars have got the best resale value. This participates in “Captives Customer” and maximizes customer retention, market share, profitability and maximize Net marketing contribution.

In the past TOYOTA MOTOR COMPANY has lunched “Scion” for youth market, because the younger customer has a greater "lifetime value" to the company. (The younger person has more car purchases in his future than does the older one). 23

Targeted Customers
Individuals overall the world
SCION - Youth market (16-30) College degree, median income $30,000-$50,000 per year. TOYOTA - Medium class (25 and up), college degree, median income $40,000 and up LEXUS - Toyota's luxury division (35 and up), college degree, median income $65,000 and up.

Companies Manufactories Institutions

Is TOYOTA Market-Based?
Yes, according to TOYOTA achievements, marketing matrix
and customer satisfaction index, TOYOTA is a Market-Based organization.

TOYOTA are constantly in tune with
customers’ needs, competitors’ strategies, needs strategies changes in the business climate, and emerging technologies, and they seek ways to continuously improve the solutions they bring to

target customers. This process enables them to move with—and often lead change.
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8 8



Our evaluation toward TOYOTA is 8 out of 10



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