ALLYAH PAULA A.

POSTOR MAY 12, 2021

BS ENTREP 2-2 MKTG 2216
Case Let #2: Toyota

QUESTION:

1. Toyota has built a huge manufacturing company that can produce millions of cars each year for
a wide variety of consumers. Why was it able to grow so much bigger than any other auto
manufacturer?

Toyota has built a huge manufacturing company that can produce millions of cars each year for a
wide variety of consumers and has products for different price points demanded by consumers. They
analyze what the customer wants and they deliver according to their need. One of the reasons it grows
bigger is because, the company has been known to be the master of lean manufacturing and continuous
innovation. Its plants can make as many as eight different models at the same time, bringing huge
increases in productivity and market responsiveness. The Toyota Company grow so much bigger than
any other auto manufacture because of the act according to preference of the customer market segment
such as Toyota Company produce large range of subcompacts to luxury and sports vehicles to SUVs,
trucks, minivans, and buses. They segment their product according to the need of customer. They create
their market segment. They produce Scion car that is target the teenage and it becomes famous among
the teenage.

Furthermore, Toyota Company became so much bigger because they give high focus on
customization to satisfy each customer. They can customize the auto in its section like music player,
color of the auto, stereo component to wheel even the floor mats. The performance quality of all the
Toyota company auto is high and they provide high performance quality auto in low budget.
Additionally, Toyota Company provide the insurance of the automobile. They provide guaranteed auto
protection service to all types of the auto mobile.

2. Has Toyota done the right thing by manufacturing a car brand for everyone? Why or why not?

In my opinion, Yes Toyota has done the right thing by manufacturing a car brand for everyone. The
company has been successful because it has products for different price points demanded by consumers.
Also, by listening to different consumers, Toyota understands that each country defines perfection
differently. As for instance in the United States, their definition of perfection and luxury means comfort,
size, and dependability. Where in Europe, it means attention to detail and brand heritage. Thus, although
Toyota maintains a consistent Lexus visual vocabulary, logo, font, and overall communication, the
advertising varies by country. Additionally, by doing this it reduces the company’s risk reduces as such
that a failure is not readily associated with the firm’s other products.
3. Did Toyota grow too quickly as Toyota suggested? What should the company do over the next
year? How can growing companies avoid quality problems in the future?

Yes, Toyota Company grow too quickly as their suggested. They pursued growth over the speed
in order to keep their product’s selection and quality superior to their competition and to deliver to the
consumer based on their definition of potential product. Toyota is integrating its assembly plants around
the world into a single giant network. They do customize on the car according to the need of the
customer. Toyota company are become one of the successful manufacturing company due to their
consistent quality.

Toyota should continue to pursue lean manufacturing and environmentally friendly technologies
over the next 5 years and 10 years. They should also focus on the problems their products have
encountered over the recent years. They need to maintain extraordinary look for each model. Such that
it will look very distinctive than competitor. They need to produce high quality and high specific design
automobile. They need to create more value of automobile by giving some of the discount or either by
various services. They need to provide e-support for their customer and they need to update their
information through the media.

Growing companies can avoid quality problems in the future by practicing method of continuous
improvement. This method is for improving every facet of a company's operations and increasing
competitiveness by developing a company's resources. Furthermore, Supplier partnering is another
method, where manufacturers work directly with their parts and components suppliers to improve
quality at the supplier's location. Avoiding quality problems can also be done through benchmarking
system. This is a continuing process of measuring products, services, and practices against the
company’s strongest competitors. Means using the best companies as the yardstick against which the
company measures itself.