Business Strategies of Toyota - Strategies for Competing in Rapidly Growth Markets
Autor: Maxi • June 27, 2011 • Case Study • 1,214 Words (5 Pages) • 1,595 Views
The following are the strategies which Toyota can be said to following:
* Strategies for competing in rapidly growth markets
* Strategies for competing in turbulent, high velocity markets
* Strategies for Industry Leaders
Strategies for competing in rapidly growth markets:
1. Driving down costs per unit: Toyota has always been a low cost car irrespective of the type of design of the car in comparison to its peers. Toyota for years is following the low cost strategy and this has not affected its quality. This quality of Toyota has given a competitive edge over its competitors in the automotive industry.
2. Pursuing rapid product innovation: Toyota was the first automotive company to launch a hybrid vehicle. Toyota's Pirus was the first hybrid vehicle and Toyota's Eco-Vehicle Assessment (ECO-VAS) helps in the production of such hybrid vehicles .Toyota is known for its unique production system name Toyota Production System (TPS). This production technique is also being studied by other manufacturers around the world. Another unique technique that Toyota follows is of "JIDOKA". Through this technique the machine automatically stops on its own if there is any problem with the production system. Another approach is just in time approach (JIT). Both these approaches make up the TPS. Also Toyota's entry into the luxury car market with "Lexus" can also be regarded as a good innovative move as it provided a luxury car at a cost lower than of the remaining luxury cars.
3. Expanding the company's geographic coverage: Toyota's global strategy of "Innovative International Multipurpose Vehicles (IMV) Project" aimed at increasing self-reliance of the overseas manufacturing production which can optimize overall worldwide production with a focus on emerging markets. Through this Toyota wanted to capture the emerging markets by fulfilling the demands of the local people and still gaining competitive advantage.
4. Expanding the product line: As discussed above Toyota have its products in different parts of an automotive industry. It has suitable for people of all ages, class etc. Toyota's brand depicts high quality, low maintenance, reliable and fuel efficient vehicles with widely available spare parts. An example of the different product line can be its product called "Scion" which targeted the youths. It believed through this product that a younger customer has a great lifetime value to the company. Also different products which captured the customer's attention are Lexus, Pirus etc. which are for different sections of the society.
Strategies for competing in turbulent, high velocity markets:
1. It can react to change: According to the text, the company can respond to a rival's new product with a better product. Toyota can be said to done this by entering into the luxury car market with Lexus, which was having all the features of a luxury car except the price.
2. It can lead the change: Toyota lead the change with the first electric car in the world, providing way for the electric car market.
3. Invest aggressively in R&D: An automotive company's success depends on the new innovative products that meet the customer's preferences as well as reduction of time required for development. For making this possible an automotive company needs to be aware of the current trends and favorites of the customers and for this the company should be having a strong research and development team. Toyota around the world is being recognized for its unique production systems and strong research and development team. Big names in the automotive industry