Toyota Revs Up U S Sales a Case

7/31/2019 Toyota Revs Up U S Sales a Case

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Toyota Revs Up U.S. Sales

A Case Study


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Summary

Since 1903 Chevrolet and Ford were dominating US

automobile market. But on 2002 a new giant emerged

there.

The Toyota Motor Company of Japan


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SummaryToyota-one of the most popular automobile manufacturer of

the world was established on 1937. During 1990s, rather

than USA they targeted some others part of the world astheir most prospective market.

But they had to abandon their plan and had to emphasize

on US market under different circumstances. Ultimatelythey succeed tremendously in US auto market in the

following decade.


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Summary

We must Americanize.Fujio Cho, CEO, Toyota.

Question is how?

After achieving the extraordinary success, Toyota is

planning to Grab the top place of American automobile

market. Their current Performance clearly indicating

that it is quiet possible.

Toyota Chairman Hiroshi Okuda joked that the company

should Move its headquarters to the United States.


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Theoretical FrameworkMissions

SWOT Analysis

Internal Analysis

Strengths and

Weaknesses

External Analysis

Opportunities

And Threats

SWOT analysis helps to formulate strategies to:

Exploit opportunities and strengths.

Neutralize threats.

Avoid weakness.


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Solutions and Findings

Threats:

Competitive Rivalry in different markets.

e.g.: Chevrolet and Ford in USA

Honda and Nissan in Japan

Economic Recession in South-East Asia and Europe.

Opportunities:

Slow Response from American competitors.

Favorable attitude from the Government.Acceptance as a Domestic Brand among customers.


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Solutions and Findings

Weaknesses:

Mentality of traditionalists

inside Toyota.Lack of understanding of

American customer.

Strengths:

Long-term effective planning.

Cost Leadership.

Widespread production facility.

Effective, efficient and advanced Technology.


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Business Level Strategy

Porters Generic Strategies

Differentiation. e.g.: Aarong

Overall Cost Leadership. e.g.: Maruti AutomobilesFocus. e.g.: Nestle

The Miles and Snow Typology

Prospector. e.g.: Amazon.com

Defender. e.g.: Holcim Cement

Analyzer. e.g.: Yahoo!

Reactor. e.g.: Biman


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Toyotas Business Level Strategy

According to Porters Generic Strategies: Focus

Toyota using differentiation focus strategy introducing

Different types of products to different market segment.

Toyota using overall cost leadership focus strategy in

American market.

According to Miles and Snow Typology: Analyzer

Maintaining existing US market share, Toyota is now

planning to catch new customers such as Rural Customer.


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Toyotas Corporate Level Strategy

Toyota following Related Diversification Strategy

Focusing US market Toyota developing new products like

Hybrid Car, Emission-free car which runs on hydrogen fuel

cell etc. with their existing facilities.

This strategy is supposed to be successful

because the Americans like style, quality

and efficiency. US authority also adoptingstrict policy about emission day by day.


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Recommendations and

ConclusionsProvide installment facility to individual customers.

Provide special facilities to Corporate and

Government clients.

Forming business alliance with reputed companiesand introduce Fusion Marketing.

Both Backward and Forward Vertical Integration

can be considered as a tool to increase market share.


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Documents

Toyota Revs Up U S Sales a Case