on one another and this relationship is a key to a successful channel distribution.

In addition, building strong relationships between manufacturers, suppliers, distributors, retailers, and customers has become an important channel strategy in both industrial and consumer markets. Through the utilization of relationship element like relationship satisfaction, buyers and suppliers could integrate various functions spread over different areas within them which could lead to greater levels of channel trust and commitment. This effort could enhance their capability to cope with today‟s worldwide trend towards building closer and more integrated relationships between channel intermediaries and suppliers (Corsten & Kumar, 2005; Leonidou, Palihawadana, Theodosiou, 2006).

More than 9 million cars were sold around the world in late 2007, and Toyota surpassed General Motors and became the number one manufacturer in the car market industry. This American car company had been a leader on the market for seventy two long years. This is thus a big success for Toyota. The success of the group is often attributed to its Just in Time production methods. This is true as these methods enable the company to achieve a very high level of production. A lot of companies drew their inspiration from Toyota; even in sectors other than automotive. However, we often forget that these methods just account for a small part of the company's success which finds its roots in the Toyota culture with strong behaviors and a vision mainly inspired by the country and its founder, which give the group a deep originality compared to most other multinational companies. What then is Toyota's culture? What is it composed of? Why was it so important in the success of the company? Where this culture comes from? And, how did Toyota to make a competitive advantage from this culture? Can Toyota's culture be transplanted abroad? How has Toyota managed this transplantation when entering the US market? Are Japan and US cultures compatible?

Toyota Motor Corporation (Japanese: トヨタ自動車株式会社, Toyota Jidōsha Kabushiki-gaisha?, TYO: 7203), LSE: TYT, NYSE: TM, commonly known simply as Toyota and abbreviated as TMC, is a multinational automaker headquartered in Toyota, Aichi, Japan. In 2009, Toyota Motor Corporation employed 71,116 people worldwide (total Toyota 320,808).[3] TMC is the world's largest automobile manufacturer by sales[4][5] and production.[6] The company was founded by Kiichiro Toyoda in 1937 as a spinoff from his father's company Toyota Industries to create automobiles. Three years earlier, in 1934, while still a department of Toyota Industries, it created its first product, the Type A engine, and, in 1936, its first passenger car, the Toyota AA. Toyota Motor Corporation group companies are Toyota (including the Scion brand), Lexus, Daihatsu and Hino Motors,[7] along with several "non-automotive" companies.[8] TMC is part of the Toyota Group, one of the largest conglomerates in the world. Toyota Motor Corporation is headquartered in Toyota City, Aichi and in Tokyo.[9] In addition to manufacturing automobiles, Toyota provides financial services through its

teamwork Procurement Suppliers are the partners Suppliers are the integral elements of Toyota Located within 56 miles radius Security to the suppliers for guaranteed order gradual mutual improvement. not “supplier cost plus” system Value analysis reduces costs Production smoothing enables suppliers to maintain a constant volume of business Focus is on long-term relationships that underscores cooperation.sharing of personnel through Toyota sending personnel to suppliers to compensate for greater workload Toyota transferring senior managers to suppliers for top positions SUPPLIERS “market price minus” system.Toyota Financial Services division and also builds robots. rather than price through bidding as a way to choose a supplier Trained suppliers as per requirement Suppliers partnership hierarchy Kaizen and learning . etc. SCM Minimizing supply chain costs while keeping a reasonable service level customer satisfaction quality on time delivery. Objective Right product Right price Right store Right quantity Right customer Right time Higher profit TOYOTA SUPPLY CHAIN INTEGRATED SCM SMOOTHER MATERIAL FLOW SUPPLIERS Organized suppliers into functional tiers First-tier suppliers: worked together in a product-development team Second-tier: made individual parts Encouraged cooperation and communication among first-tier suppliers Cross.

period route revision Good timing at all connection points Order fluctuation allowance built into route capacity plans Manufacturing Toyota Production System Best quality Lowest cost Shortest lead time Best safety High morale Through shortening the production flow by eliminating the waste Manufacturing Continuous improvement JIT People and teamwork Jidoka – quality (make problem visible) Waste reduction Leveled production Stable and standardize process Visual management Kanban – flow of correct information DISTRIBUTION . small pallet size Dedicated transportation service Consistent daily route.Joint improvement activities Information sharing Compatible capabilities Control system Interlocking structure Mutual understanding and trust Managing suppliers Suppliers are extensions of Toyota Care and develop as own associates Long term partnership Tier structure : levels of responsibility Strict cost target and timing Integrated system (JIT) Purchasing challenges Normal expectation : 3 to 4 % price reduction per year after model year launch Meet best price with Toyota quality Trim master goal : 30% price reduction for new vehicle launch Key to logistics performance Packaging : mixed box size.

Toyota’s sales and marketing work is divided into four distribution channels Toyota (mostly high-end. and can make an effort to sell all car models assigned to him. each dealer can develop deep knowledge of all models he has for sale. DISTRIBUTION Toyota works with one distributor in each country Toyota markets cars in about 170 countries through its overseas network consisting of more than 160 importers/distributors and numerous dealers. DISTRIBUTION Toyota applies the “Toyota Way” to manage dealers. The Toyota dealers as a whole have approximately 5. with each channel offering only 15-25 models. DISTRIBUTION This way. and Netz Toyota (compact). large cars).000 outlets and 120. based on three basic principles: Dealers are free to make independent decisions. . and Toyota can only help them to invest in the right things to improve. Toyopet (medium size). Both the dealers and Toyota must prosper jointly. Competition is a means to improve. Such a strategy motivates dealers to be more proactive. Overall.In Japan. Toyota offers about 60 car models. rather than only the few most profitable ones.000 employees. Toyota Corolla(compact). Overall. China is the highest-growth market.