VALUE CHAIN ANALYSIS:

Toyota is a global brand of vehicles known for its excellent production and supply chain
capabilities. The Japan based brand is also known for having built an excellent level of
trust among its customers. Toyota has managed its value chain very well. The value
chain includes the entire stage from product conception to after sales service.  This
model was developed by Michael E Porter of Harvard Business School. Managing the
value chain can help with increasing productivity.  Toyota is known for its excellent
production management.  There are many more things too that are quite outstanding
about the value chain of Toyota Motors. We will discuss it in this value chain analysis.
There are two kinds of activities in the value chain which are primary and support
activities.

Primary activities:
Inbound logistics: Receiving, storing, and disseminating inputs. E.g., warehousing, inventory

Toyota has managed  a  large supply chain, It receives parts from thousands of suppliers
located from around the globe. It has handled its inbound logistics efficiently. Its
worldwide network of distribution centers and warehouses receives parts from the
suppliers.
Outbound logistics:

Toyota has parts and logistics centers in various nations around the globe. It ships
thousands of parts and orders each day from its network of warehouses and distribution
centers. Toyota notes on its website, “The Toyota Parts Centre Europe is its central
distribution centre, at the core of its parts supply chain. The centre is located in Belgium
and ships thousands of parts every day to its regional depots across the entire region”.

Operations:
Toyota is a global brand with its operations spread throughout the world. It has its
headquarters in Japan. The brand also serves its customers across the globe through a 
large and global distribution network. Apart from its several manufacturing and R&D
sites, the brand  has several parts distribution centers a various locations throughout the
globe.

Marketing & sales:

Toyota is a global brand but the level of competition in the industry is very high. It is
facing stiff competition from the other vehicle brands. To retain its market share and
customer base,  Toyota makes major investments in marketing and promotions. Toyota
uses a mix of traditional and modern advertising mediums for promoting its brand and
products. Apart from its own website and social media, the brand also uses its sales and
distribution channel for marketing. Events like races and motor shows are also an
important method of promotion for Toyota. In 2015 and 2016, the brand invested more
than 4 Billion US dollars in advertising.

Support Activities:
Technology :
Toyota is a major vehicle brand known worldwide for its exceptional engineering and
technology. Apart from great production technology, the brand has increased its
investment in technological innovation for growth. It has its own research centers and
has entered into partnership with institutes like MIT and Stanford for faster innovation.
Every year Toyota invests a large sum in R&D for innovation in AI and Robotics.

Infrastructure:
Toyota has maintained  a large infrastructure globally. From its headquarters in Japan to
North and South Americas as well as Asia and Europe, Toyota has maintained an
extensive presence throughout the globe. Currently led by Akio Toyoda, the brand has
an impressive presence in most of the major markets of the world.

HRM:
Toyota had 364.5K employees in 2017. The brand believes in a human centric approach
to value creation and therefore focuses on the development of its human resources. It
follows the philosophy of human centered Monozukuri. In the automotive industry,
smart and able human capital can be a major source of competitive advantage.
Procurement:
Toyota procures raw material from thousands of suppliers around the world. In 2009,
the brand formulated a specific ‘Toyota way of purchasing’ that lays down the policies
and principles that the procurement staff must follow. Through its procurement
strategy, Toyota has always worked towards contributing to local economies.