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The Japanese multinational that felt the effects of a global slowdown is now stepping on the gas, not in the traditional way of expanding with numbers and volumes but in terms of strategic decisions that are in line with its successful strides in new markets. Toyota has just cleared its position on some bad press it received as a result of its mats leading to unintended acceleration, after it has amply been proved that there were no mechanical problems involved in the issue. Toyota Prius: With the mat news behind it, Toyota plans to make its way forward through initiatives in the production and marketing departments. Toyota’s Prius Hybrid vehicle has been a roaring success as a stand-alone brand. High on style, space and efficiency, the vehicle, after its enormous acceptance with the consumers, is being seen as more than yet another model in Toyota’s stable but as a marque that is strong enough to have a slew of models within the Prius brand. While no decision has been taken in this regard and while it is yet to be approved by the management, the move by Toyota is very much on the cards, which could see the Toyota Prius brand being stretched to accommodate sub-brands under the marque. Lexus Hybrid: Next in line is to cash in on the success of its hybrid vehicles and the star power of Lexus – Toyota has ideas to make Lexus a hybrid-only brand in the UK. And in efforts to project all its brands and initiatives using the right pedestal, Toyota is going ahead with its consolidation in the Advertising arena, pooling all its advertising projects for Toyota brand in Europe into Saatchi & Saatchi’s account. While individual projects were allotted to different ad agencies previously, the move is aimed at creating and projecting a uniform image of what the brand stands for in the market. Advertising messages for its Lexus brand would be handled by CHI & Partners. Both the agencies would work in unison to creating a global marketing campaign and to provide a more consistent and uniform branding platform across the globe. Toyota is known to be consistent in its product quality and in the production department. With its initiatives in the fast-growing hybrid market and with efforts to get its branding and advertising acts together, Toyota could well be expected to set the roads on fire in the days to come Toyota Marks 4 Millionth Vehicle Built in Canada Milestone Vehicle Built Today September 17, 2010 – Cambridge, Ontario - The 4 millionth Canadian built Toyota was driven off the line today in Cambridge at the Toyota Motor Manufacturing Canada Inc. (TMMC) assembly plant. The 2010 model silver Corolla was surrounded by some of the more than 6,500 TMMC employees for a group photograph celebrating this major milestone. TMMC Chairman Ray Tanguay said, “The consistent quality produced by Canadian Team Members has supported this major contribution to our economy. This is another
is the marketing.A.000 vehicles annually.A. and its investment here is currently valued at more than $18 billion.proud milestone for our company and for Canada.77 million vehicles in 2009. the 5 millionth vehicle built in Canada could arrive in only two years. Inc.S.500 Toyota. By comparison. distribution and customer service arm of Toyota. the 3 millionth vehicle was built just three years ago.S. Lexus and Scion. after being ranked by customers as the best manufacturing plant in North and South America out of 68 plants and the #2 manufacturing plant globally out of 137 plants. U. sales. Today. The TMMC Cambridge South plant recently received the J. with the potential to build 500. Lexus and Scion dealers which sold more than 1. We are very grateful to our customers for their ongoing support. institutes Contacts with the banks for leasing Establish the new dealership network monitor the sale at dealers Swot Analysis Opportunity Switching diesel market toward petrol and CNG market Failure of competitor model Unacceptability of competitor model Price increase in 1000cc Threat Government reducing the excise duty on imported car IR interest rate Higher Reduction in Diesel prices Entrance of the new Firms . Power Gold Plant Quality award. Toyota Motor Sales (TMS).000 people in the U.. TMS markets products and services through a network of nearly 1. Toyota directly employs nearly 30. Inc. U.” It took eleven years from the initial start of production in 1988 to build the first 1 million cars at TMMC.. About Toyota Motor Sales.S.D. Function of Marketing Department Arrange the events of the government institutes Prepare the potential customer list Make region performance report Provide selling skills to dealers employee’s Contact with the Govt. Established in 1957.
among other countries. that relate directly to the Endless Innovation blog!) Marketing Strategies For Toyota Toyota has grown to a large multinational corporation from where it started. Already. Anyway. a new full-size truck designed with Red State America in mind. Daimler Chrysler. small incremental innovations snowball over time into huge improvements in productivity. the United States. where they examine the rusting hulks of old trucks: "With so many retired trucks in one place.Swot Analysis Strength Brand image Market Leadership Easy availability of spare parts Dealership network Suitable for rural area Weakness Always charge the premium price Management Control by local partner How Toyota became the most innovative car company in the world This weekend's New York Times Magazine featured a great cover story on Toyota. the most profitable automaker along with increasing sales in. more various. By the end of 2007. of course. What's cool is that Toyota engineering and design teams actually make archaeological visits to truck graveyards in Michigan. the company's stock market capitalization is $240 billion . if you're looking for some Japanese management buzzwords to inject into your cocktail conversations." (In addition to this great quote about evolution. which explained how the Japanese company has become the acknowledged leader in the global automobile industry. the article explains concepts like kaizen ("continuous improvement") and genchi genbutsu ("what customers want in a car or truck and how any current versions come up short"). The latest product is the Toyota Tundra.becoming larger. With Toyota. the incredible Toyota engineering team continues to get things right. Ford. Toyota could pass GM as the world's largest car company. they also gained a better sense of how trucks had evolved over the past 30 years . At a time when Ford and GM are downsizing and rightsizing. Toyota brands include Scion and Lexus and the corporation is part of the Toyota Group. and expanded to different worldwide markets and countries by becoming the largest seller of cars in the beginning of 2007. If Toyota were a baseball team. Honda and Nissan combined.both topics.and where they might go next. The Toyota Production System (TPS) is a production system steeped in the philosophy of . efficiency and output. surmises Jon Gertner of the New York Times. more luxurious .higher than that of GM. it would be the type of team that wins 150 out of 162 games. the article highlights the importance of Toyota's DNA -.
in order to deliver the vehicles as quickly as possible. This production control system has been established based on many years of continuous improvements. Toyota is one of the largest companies to push hybrid vehicles in the market and the first to commercially mass-produce and sell such vehicles. in finding new of consolidating their products. Toyota Motor Corporation’s vehicle production system is a way of making things that is sometimes referred to as a lean manufacturing system and has come to be well known and studied worldwide. two year (mid-term). with the objective of making the vehicles ordered by customers in the quickest and most efficient way. The one year plan includes the apparition of new and finding ways cut costs or even already growths which are not put practice. . This technology is the most widely tolled-out environment-friendly system in the automotive industry to date. and Toyota-produced Lexus and Scion automobiles have consistently ranked near the top in certain quality and reliability surveys. it is quite hard focus on short-term plans.. it be starting point for projects. it really to which are the one year plans and are or plans because a year plan could developed on. The Prius has become the top selling hybrid car in America. an example being the Toyota Prius. Toyota's Future Strategic Toyota Company's strategic plans are divided into three categories: one year plan (shortterm). the company is always seeking. Moreover. by better materials and by coming up with new of improving the labor conditions.. Although they do yearly up a model and.the complete elimination of all waste and that imbues all aspects of production with this philosophy in pursuit of the most efficient production method. Toyota Motor Company is developing its hybrid technology and even planning for 2008 emergence a model: "The Lexus to technology continues with the launch of the all-new 2008 LS 600h L premium luxury hybrid sedan when it goes on sale this summer. five year plan (long-term) depending on the duration also on the of the ideas to be developed. such as Motor Company. Toyota’s CEO has committed to making every Toyota a hybrid vehicle eventually. could be on other markets in the following years or. Hybrids are viewed by some automakers as a core. When comes to very companies. Toyota. and an eight-speed automatic transmission. That is. Advanced Parking Guidance System. Toyota has introduced new technologies including one of the first mass-produced hybrid gas-electric vehicles. According to Toyota Motor Company's official. trying to find long term for daily problems." dealing with cutting down costs there some by which this be done: investing in new technologies like the hybrid . a four-speed electronically controlled automatic with buttons for power and economy shifting. other what has been established so far. by growths on a short term Toyota Motor Company tries to enter preestablished markets and gain a sale-quota or the project already discussed and . they has managed to achieve some it’s when discussing the cutting down of costs.
Moreover. 3.Two year plans (mid-term) are more easily identifiable as they either planned projects that exceed one year. by renewing its fabrication and the technology used all over the. People have a lot of trust for their name and this is why Toyota is the leader in automobile industry. 6. Toyota is not just a place to. Furthermore.2 million cars and trucks in America. They currently developing their programs support ongoing expansion but at the same time manage to keep their unity all over world. This can be seen by analysis of the financial reports of the previous years. No doubt the other cars are available but Toyota has an edge because it has learnt various . 2." to the fact Toyota Motor Company open second at Toyota Motor Manufacturing Canada in Woodstock. Regular assessment and SWOT analysis is thus given importance. An effective strategy will take advantage of an organizations strengths and opportunities at the same time it minimizes or overcomes weaknesses and threats. Toyota has become the generic name in the Pakistan market. Toyota has a great strength for its 2. Whenever the company launches the new car in the market it has always the great support of the already market orientation so the car introduced by it easily covers the introduction stage. This sense. Toyota vehicles are made according to the Pakistani environment. 5. STRENGTHS 1. planned improvements to efficiency or planned . Toyota vehicles have got a much stronger resale value than other car in Pakistan. "By 2008.OD car. an organization must assess its internal strengths and weaknesses in relation to the external opportunities and threats it faces. Toyota Motor Company is trying to improve its technology. The price of spare parts is comparatively low and availability all over the country has proved to be beneficial for the company . but it strives become family for its employees In formulating sound strategic plans. This is why people prefer to buy a Toyota. Most implementation projects usually take more than year. The important edge over the company editors are the sample availability of the spare parts in the markets.4. Ontario in 2008 in order to sustain the ones in North America. Toyota is the hot selling diesel engine car in Pakistan and is the only company offering the diesel engine in this category of cars. Toyota is a financially strong company. Toyota have annual capacity to build nearly 2. Toyota Motor Company always improves in all.
8.shifting attention to the Chinese market. This results in customers complaints sometimes. Toyota is proud to have a successful team of competent managers and skilled workers. The dealers sometimes tend to deviate from the recommended course of action and principles of Toyota. 2. and as emphasized by the case video. especially in the case of the Prius. • New investment by Toyota in factories in the US and China saw 2005 profits rise. 9. There are seventeen dealers in Pakistan where sales. on customer relationships.78 million units. service and spare parts are offered. highly targeted marketing and a commitment to lean manufacturing and quality. Interior dimensions are less and heavy body and small engine sometimes create problems in hilly areas. Extensive training have enabled the employees to perform outstandingly. • Most products targeted to the US and Japan only . to become the World's second largest carmaker with 6.conditions of the Pakistan environment and people. Many are now saying that Toyota may become the largest automaker surpassing General Motors by next year. Toyota is the only company having the most sophisticated network of dealerships where customers are treated by professional dealers. • Diversified product range. which the case study states had a backorder dating back six months. • Movements in exchange rates could see the already narrow margins in the car market being reduced. Also Toyota offered many variants of colors. The power steering is not speed sensitive and the air conditioning system in severe heat is in-effective. 7. • Uses marketing techniques to identify and satisfy customer needs. • Company needs to cautiously keep producing cars in order to retain its operational efficiency. There are some weaknesses in the dealership network. • In 2003 Toyota knocked its rivals Ford into third spot. Toyota has an edge over others because it is the only automobile company in Pakistan. . while offers many variants of its vehicles. leading to convenience for the customers. There is some weakness in the case of ergonomic interior of Toyota corolla as well. WEAKNESSES • Manufacturers need to make sure that it is their models that consumers want versus competitor's. 1. So new additions and changes are proving to be successful.
2.3. Honda has adopted aggressive strategies for capturing the market. THREATS • In 2005 the company had to recall 88. The company is besieged with internal operating problems which are not very serious. still it faces some threat from competitors especially Honda. Motorway Police. • Toyota is to target the 'urban youth' market. • Toyota faces tremendous competitive rivalry in the car market. This should be started again. 2. Lexus has RX 400h hybrid. 4. A major threat is the changing political and economic scenarios of Pakistan. For this reasons inventory has to be kept low. OPPORTUNITIES • Lexus and Toyota now have a reputation for manufacturing environmentally friendly vehicles. 1.5. Toyota should also try to lower its price of Corolla in the segment where Honda city has penetrated. This is because CKD kits are ordered four months before and once they arrive from Japan. It can offer discounts to Government departments and large organizations on purchase of its vehicles in more quantities. Shaheen Force and the dignitaries where corolla has an opportunity to deal with the business markets along with dealing in consumer markets.g. • Toyota has also sold on its technology to other motor manufacturers. still the changing customer needs and trends can prove to be a threat. Because of dependency on Toyota’s principles delivery of cars is done after 4-6 months.000 SUVs and pick up trucks due to faulty front suspension systems. This has lead to an adverse environment. and Toyota has it Prius. Even though Toyota keeps a careful eye on the changing trends. South Korea and new plants in Eastern Europe 1. Competition is increasing almost daily. . assembly and delivery takes some more time. Export is a major opportunity for Toyota Indus Motors. Even though Toyota enjoys the position of being the no. Vehicles were exported to Bangladesh just once in order to prove the plant capacity and efficiency of the company. with new entrants coming into the market from China. 4. Success of the manufacturing of Daihatsu coure is a major opportunity for Toyota to excel further careful planning and the right time to launch the new car can prove to be a success. The company feels that one weakness is the changing policies of the government and also the 30% cash L/c margin. The contract with the government department’s e.6. 5. for example Ford has bought into the technology for its new Explorer SUV Hybrid. The company has launched its new Aygo. which is targeted at the streetwise youth market. • Rocketing oil prices have seen sales of the new hybrid vehicles increase. Toyota can do better by focusing on segments much more than presently being done.3.1 automobile company. A lot of effort is pull into the sales forecasting because of the changing political and economic scenarios.3.
.Changing government policies affect the company’s performance. Moreover the company is threatened by the ongoing rate of 30% cash L/c margin. Devaluation of rupee adverse shifts in foreign exchange rates.5.4. The planned car manufacturing plants of Hyundai and Daewoo can prove to be tough competition for Toyota if they are successful. trade policies of government’s is a threat. Import of re-conditioned cars is also considered as a threat for the company.