Task 3

Contents
Section A...................................................................................................................................2

1. The Company Overview - Toyota Motor Corporation............................................2

Section B....................................................................................................................................3

2. The Review of the Company...................................................................................3

3. Market Startagy........................................................................................................6

4. Analysing SWOT.....................................................................................................7

5. The Brand Strengths................................................................................................8

5.1. Strong Research and Development Emphasis......................................................8

5.2. Extensive Supply Chain.......................................................................................8

Section C...................................................................................................................................8

6. Global Impact and Declining Sales.........................................................................8

7. Threats with Intense Competition............................................................................9

8. Customer Analysis - Target Market.........................................................................9

9. Competitor Analysis with Existing Products...........................................................9

10. Understanding the Competitors and The Market Share...........................................9

11. Conclusion.............................................................................................................10

12. Recommendations..................................................................................................10

References...............................................................................................................................11
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Section A
1. The Company Overview - Toyota Motor Corporation
Toyota Motor Corporation (TMC) is an automotive manufacturer in Japan. It became the
most prominent car manufacturer in 2008. Besides, many of its companies specialize in
producing motorcycles, repair components, and industrial vehicles. In 1933, as a branch of
Toyoda Automatic Loom Works Ltd, TMC was established by Toyoda Sakichi. The first car,
the AA sedan type, was built in 1936, while Toyota Motor Corporation Ltd, a spin-off
automobile under the leadership of Kiichiro Toyoda, Sakichi's son, became the leader in
1937. Subsequently, the firm founded Toyoda Motor Works, Ltd. (1941) and Toyota Auto
Body, Ltd. (1945). Nonetheless, after the Second World War, TMC was compelled to
abandon its car development temporarily. The company's manufacturing facilities were back
in service in the 1950s and were successful. They began a survey on US car manufacturers.
These advances, which have led to greater production, would then be introduced.

In a strategic partnership, Toyota is committed to enhancing its brand, shares the rewards and
risks of taking joint action, and continues to make strategic contributions. They are often
established when a firm wants to supplement what it currently performs with unique
capabilities. Strategic alliances may, however, be formed via joint ventures or non-traditional
contracts, such as cooperative research and development, long-term sourcing, and shared
distribution and services (Kaneko, et.al., 2021).
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Problems always arise in Toyota's strategic alliances, and they must be rapidly resolved to
ensure the alliance's viability. Examples of issues that must be resolved rapidly include
managing numerous knowledge flows; isolating proprietary information; creating adaptive
governance; and managing international virtual teams.

It is estimated that overall market sales are about 14.4 million units, down from the average
17+ million in recent years. Furthermore, Toyota's sales are likely to close at about 1.75
million units in 2020, down from the usual average of 2 million units. Trucks and SUVs,
driven by the RAV4, which is likely to remain the world's best-selling SUV for the fourth
year running, have continued to lead the way. In February 2022, sales worldwide were the
same as they were the previous year. Because COVID-19 spread, there was a parts shortage,
which hurt global production. However, our suppliers worked together, and overseas
production hit a record high for February. Also, 20 million electrified vehicles (HEV, PHEV,
FCEV, and BEV) will be sold worldwide by February 2022. As of February 2022, Toyota
estimates that using its electric vehicles has cut CO2 emissions by about 160 million metric
tonnes and saved about 65 million kilos of gasoline. In the future, Toyota will keep making
better and better cars, including a full line of electric cars, to help create a carbon-neutral
society. However, passenger vehicles remain a significant contributor, most prominently the
Camry, which for the 19th year in a series will be the best-selling sedan in most countries.
However, the view ahead should be brighter. The c any have been given proprietary
information on a range of potential items, innovative advertising campaigns, and new
marketing approaches promise to achieve a massive bounce back in 2023 (Wang, 2021).

Section B
2. The Review of the Company
It is crucial for every business organisation to establish and execute a strategic strategy before
its launch, according to the review. However, the strategy discusses how the business can
effectively sell its goods and services for sustainability and to achieve a return on investment.
It is equally imperative to provide a marketing strategy that is well-created and illustrated
(Cusumano, 2020).

Any company or entrepreneur carries out these measures before any enterprise is started.
Toyota, which is an organisation with a global scope, has not been left behind in this regard.
Since the company's introduction, precautions have been taken to date by the successful
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promotion of its products (Morgan, & Liker, 2020). The business considers it reasonably
straightforward to sell individual car models by selling the whole Toyota brand since it has
developed itself internationally as a company of preference for the majority of customers, not
just in Japan but also in Germany, especially in the US and European countries (Mohd
Khalid, et.al., 2022).

Although the country has internationally recognised car manufacturers such as Audi, Bavaria
Motor Works, Ford, Opel, Porsche and Volkswagen, Germans are among the largest buyers
of Toyota models. Whenever they are able, Toyota is renowned for launching new versions.
In certain situations, it withholds innovative innovations before another product has been
launched to the market by a competing corporation to keep ahead of rivals by technological
innovation. Moreover, the customisable model is among the disruptive technologies launched
recently by Toyota, which is for niche segments and not for the mass market of developing
nations where the company can meet their returns more easily.

However, significant changes came, and Nissan delivered the largest number of electric
vehicles in the last decade to many countries in the world, including developing nations,
relative to Toyota (Morgan, & Liker, 2020). Electric cars continue to be launched by
Volkswagen, Renault, Honda, and other automakers to reduce the supremacy of Toyota's
hybrid Prius, which is a significant matter for them to gain more than the competitors. Other
companies, such as Chevrolet, also launched the Chevy Volt, a car with electrical technology,
impressive fuel economy and results. Nissan launched the all-electric plug-in Leaf at the
beginning of the electric revolution in the modern world (Mehri, 2018). Therefore, Toyota
should consider the economical e-cars where it has a huge market in Asia and Africa than
Europe due to the lack of public transport services (Mohd Khalid, et.al., 2022).

Customer Expectation Evaluation

Technology Advancement
Connectivity
Due to technology improvements, disruption in the
transportation sector is unavoidable. As a result of this
upheaval (Deloitte,2020), automobile OEMs are
focusing on four major pillars of change: connected,
autonomous, sharing, and electric
Connectivity is changing more and more, and customers
who lean toward the digital world need individualised
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experiences that are adaptable and quick. Increased

customer connectedness to the outside world might be
achieved by integrating Alexa home and work calendars
into automobiles.
Future Challenges Conditional automation (Level 3) will give way to
complete automation by 2030, while Level 5 autonomy
will be implemented 10+ years later. Technological
advances in "robo-taxi" have the potential to
significantly upset the market and cause users to
abandon individual ownership to make everyone's lives
simpler while also improving the lives of their clients.
The Impact of Environment The rising demand for contactless services will change
the customer experience because of the economic
slump, which will have an effect on consumer spending
and Toyota's capabilities. Toyota has not launched a
service to address this demand globally. But Toyota
Australia introduced "Order & Collect", which may be
compared internationally. Despite having the ability to
innovate, Toyota has a bad image because of recalls. A
hefty reputational cost resulted from the recall of 3.9
million hybrid automobiles in 2021. Toyota's value
proposition came in third place, outpacing Daimler and
Volkswagen in terms of its potential to improve
technology (Fujiyama, et.al., 2021).

Market Segmentation Toyota's dominance in the luxury market, lack of

technology integration, and brand perception among
consumers as a technologically cutting-edge brand are
to blame for this. Toyota should therefore focus on more
wealthy customers to expand its capabilities.
Competitive positioning: worldwide presence; value-
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based, with affordable pricing and high-quality vehicles.

However, as Toyota is more valued for its products than
it is for its inventions, this has an impact on how people
see the company. Toyota now uses segmentation for
customer profiles based on demographic, regional, and
psychographic data.
Toyota should concentrate on intra-segmentation while
doing segmental analysis to better understand customer
profiles and technical demands. Market to consumers
based on their needs and behaviour. Toyota has strong
competencies but lacks premium market domination and
Sustainability good branding, both of which should be improved to
satisfy consumer wants and spur development.
Companies are under pressure from customers and the
government to modify their cultures, processes, and
products, which is upending how they approach their
product and process development. Customers desire to
limit the consequences of pollution by reducing CO2
emissions by putting more emphasis on alternative fuel
alternatives. Product sustainability: rising demand for
electrification, hybrids, and solar By incorporating
maintenance, quality, and production procedures to cut
waste, sustainable manufacturing has become essential.
Through regeneration and repair, the circular economy
maximises resource use (Datta, 2022).

3. Market Startagy
Generally, market positioning refers to customer knowledge of a specific brand, which
contrasts with rivals. However, the purpose of market positioning is to create a brand image
so that consumers view it in a certain way to enhance market activities. Toyota has a good
business position; as such, competitors' challenge is considerably low since the automobile
industry is highly competitive for more than three decades.
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1,600,000

1,400,000

1,200,000

1,000,000

800,000

600,000

400,000

200,000

0
Toyota Daihatsu Hino

Worldwide production Production inside of Japan Production outside of Japan

Figure 1. Major Japanese Automobile Producers., (

Toyota uses low cost and more diverse tactics in market positioning to achieve
competitiveness over its competitors. Moreover, the company further uses a more extensive
that includes each consumer group that intends to purchase a vehicle while the firm has the
potential with very lager markets compared to other competitive manufactures in the world.
Besides, Toyota sells a range of models for all segments, from the low-cost economic Toyota
Corolla model to luxurious premium motor cars, including sport utility vehicles (SUVs).
Therefore, it is evident that Brand Positioning is highly advantageous to becoming the market
leader (Datta, 2022).

4. Analysing SWOT
Toyota is a revolutionary firm that applies the highest automotive architecture in the world.
However, the automobile design for various purposes while understanding the specific
markets' segments and economic environment to enhance the demand and profitability.
Moreover, as per the SWOT analysis, certain advantages and adverse impacts on the business
as mentioned below.
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Table 1. SWOT Analysis

Strength Weaknesses
 Healthy positioning and higher  Recalls the products
recognition in the industry  Falling sales in major markets
 Intense research and development  Destitute resource allocation
emphasis
 The great chain of manufacturing and
best delivery system through its supply
chain.
Opportunities Threats
 Growing global vehicle demand  Growing competition
 Escalating collaboration with BMW  Currency Appreciation (Japanese Yen)
 Robust international collaboration  Global economic downturn
opportunities under free trade
integration
Source-(Toyota, 2020).

5. The Brand Strengths

With healthy market positioning and global acceptance in the sector, Toyota is enjoying as
the market leader. However, considering global key markets, the firm enjoys the right market
presence for the last few decades due to price, quality, and availability. Moreover, the trends
of mini cars, the company's market share is being increased more than 48%, and also the
company has more than 17% percent market share in North America and over 16 % in Asia,
which is significant. Therefore, the company could receive the right marketplace with an
unchallenged strategic edge for the brand image. Consumers are therefore readily identified
with the brand and enhancing the demand with contemporary trends, globally (Marques,
2021).

5.1. Strong Research and Development Emphasis

The organisation invests heavily in its research and development, which has allowed the
business to grow its range of products. Building a strong name, Toyota has enhanced the
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accessibility, modern technical features, protection, and environmental enforcement of its

products.

5.2. Extensive Supply Chain

With elaborate supply chain management, the organisation has over 50 production facilities
in twenty-seven countries. When Toyota's business concept, the company introduced, the
most sophisticated approaches for its products, which consumers can conveniently enjoy.
However, considering the firm's weaknesses, product recalls were some of the areas where it
brought specific adverse impacts to the brand image and were able to manage that problem
more appropriately. Moreover, it may take the company several years to develop enough
confidence to buy the car.

Section C
6. Global Impact and Declining Sales
In the FY208 and 2012, Toyota experienced declining sales in the leading markets in North
America, Europe and Asia. This may be due to the loss in confidence in the company
products and the availability of alternative products. The same fate may befall the concept car
as prospected in the marketing plan.

7. Threats with Intense Competition

The company signed a memorandum of understanding with BMW in 2012 as a long-term
strategic technological cooperation which was able to increase the opportunities for further
advancement of the Toyota concept to meet the ultimate machine. Additionally, there will be
synergy in marketing the car, especially for sport models in the world.

8. Customer Analysis - Target Market

The concept of Toyota will be availed in the German market, which has occurred after
considerations that the Germany economy. However, the German economy is performing
considerably well, and the company already losing a broad customer base due to the
European automobile market, today. It has a significant percentage of loyal customers up to
now. Therefore, Toyota will not be able to enjoys a significant market share in the German
market. The collaboration with BMW will ease access to many German segments in addition
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to the existing Toyota outlets in the country. Germans positively motivate popular for buying
BMW products in volumes due to the loyalty established and its economic approach.

9. Competitor Analysis with Existing Products

Currently, concept cars do not exist in many areas of the world. In any case, few companies
have managed to manufacture cars. However, based on the benefits of new technological
features, BMW has become more popular than other brands while considering its economic
features. Moreover, understanding the concept of European makes, they manufactured by
many valuable additions which other companies do not have as that mush comprehensive and
advanced technology which does not have with Toyota due to lack of innovative approaches
when comparing to Europe (Marques, 2021).

10. Understanding the Competitors and The Market Share

Competitors such as Audi and BMW are considerably bigger and financially endowed.
However, the collaboration with BMW eliminates one aspect of the threat. Additionally,
Audi has not indicated its intention to compete in Germany through concept cars.
Nevertheless, based on the market share, most of the competitors have small market share,
especially in Europe and Asia, which regard to the Toyota concept and its technological
improvement where none of the competitors has managed to penetrate the BMW market in
Europe. Considering the reaction to entry for new markets, manufactures such as Audi and
Ford are likely to employ disruptive invention to penetration with a new product.

11. Conclusion
According to gaps identified, especially in the European auto industry, traditional models of
vehicles seemingly dominate the market. The existence of leading competitors poses a
challenge for Toyota to conduct comprehensive market research. The introduction of the
concept car that has not been sold anywhere else will be challenging.

However, understanding the overall strategic approach, Toyota should develop a marketing
plan that is accurate and more realistic which should then implement the plan and do
appropriate reviews when necessary. The company should develop marketing strategies that
are different from those employed in especially for other models.
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12. Recommendations
As per the review, Toyota should devise a promotion plan for successful entry into the
European market by building brand awareness. The existing reputation should be maintained
if not enhanced. The company should further increase investment in market research to
develop the correct image in the market. When pricing the Toyota concept, competitive
pricing should be given priority to enable the company to enter successfully in the market, all
over the world, including Europe. Since the company has a reputable brand name in the
world, it should understand the global economic outlook due to COVID-19 Pandemic to
remain constant.
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References
Cusumano, M. A. (2020). The Japanese automobile industry: Technology and management at
Nissan and Toyota. Brill.

Datta, P. M. (2022). Strategic Analytics for Decision-Making. In Global Technology

Management 4.0 (pp. 91-109). Palgrave Macmillan, Cham.

Fujiyama, M., Kondo, T., & Kaneko, T. (2021). The All-New YARIS Toyota New Global
Architecture (TNGA). In 11th International Munich Chassis Symposium 2020 (pp. 23-
38). Springer Vieweg, Berlin, Heidelberg.

Kaneko, H., Vlad, C., Takahashi, T., Ishida, H., & Sugiyama, K. (2021). TOYOTA MOTOR
CORPORATION'S LEGACY OF TRANSFORMATION BEHIND THE GLOBAL
BUSINESS GROWTH STRATEGY. Romanian Economic and Business Review, 16(2),
66-78.

Marques, I. L. (2021). Design and implementation of a corporate management system in

Toyota Caetano Portugal SA (Doctoral dissertation).

Mehri, D. (2018). Notes from Toyota-land: an American engineer in Japan. Cornell

University Press.

Mohd Khalid, Q., Saad, N. H., Abdul Halim, N. H., & Khusaini, N. S. (2022). Employee
satisfaction towards integration of quality management system: a case study of
Malaysian automotive manufacturer. Journal of Mechanical Engineering (JMechE),
19(2), 187-204.

Morgan, J., & Liker, J. K. (2020). The Toyota product development system: integrating
people, process, and technology. CRC Press.

Morgan, J., & Liker, J. K. (2020). The Toyota product development system: integrating
people, process, and technology. CRC Press.

Wang, Z. (2021). Exploring the potential of lean philosophy to spread the value of
sustainability in the Japanese automobile industry: the case of Toyota Motor
Corporation. Управління розвитком складних систем, (45), 176-181.