Globalization Efforts:

After centuries of technological progress and advances in international cooperation, the world is
more connected than ever. Globalization is the word used to describe the growing
interdependence of the world’s economies, cultures, and populations, brought about by cross-
border trade in goods and services, technology, and flows of investment, people, and
information. Countries have built economic partnerships to facilitate these movements over
many centuries. Corporations have been globalizing their products since forever. Toyota is no
different than the big fishes of the corporate sector. They have been trying to globalize their
products since the beginning. But the problem with globalization is that one product does not fit
all. For example, people of south-east Asia likes to use sedan for daily commuting and as a
family car. Luxury is not really a necessity for these people. But on the other hand, European or
American people prefer luxuries vehicles for daily usage and they also like sports car more than
Asian people. So the cars that fulfills the purpose of Asian people will not be of much use to
American or European people. That’s why Toyota created a sub brand called “Lexus” that make
luxuries as well as sports cars that are targeted for those people. So, in this case, globalization
became more like localization. A global company is producing different cars for different
demographic people. They took a step back from total globalization and put some effort on
localizing their products. Many other big corporations are also doing the same. Globalization is
not always the best concept to put effort in. It causes the corporation to miss out on a large chunk
of customers. This is why many of them are taking a step back from total globalization and
diversifying their efforts to globalize their product.
References:
1. Ichijo, K., & Kohlbacher, F. (2007). The Toyota way of global knowledge creation the'learn
local, act global'strategy. International Journal of Automotive Technology and Management, 7(2-
3), 116-134.

2. Hino, S. (2005). Inside the mind of Toyota: Management principles for enduring growth. CRC
Press.

3. Liker, J. K., & Convis, G. L. (2012). The Toyota way to lean leadership. McGraw-Hill,.

4. Takeuchi, H. (2009). The contradictions that drive Toyota s success. Strategic direction.