TOYOTA’S BUSINESS STRATEGIES IN INTERNATIONAL MARKETS
Assist. Mihaela Funaru Ph. D Student
University of Braşov
Faculty of Economics and Business Administration
Abstract:Toyota’s success both on the Japanese market and international
market due to its desire to make products with high quality. The Japanese
believe that nothing is so good that it can not be improved, so they constantly
struggle to increase the quality of everything they do. This attitude can be
expressed by a single word:”Kaizen”. It means „continuous improvement” and
is the key word to guide them towards perfection. This paper presents the
strategies of Toyota Company in their attempt to gain ...view middle of the document...
Toyota has factories all over the world, where produces and assembles vehicles
for local markets. The company has manufacturing or assembly plants in Japan, USA,
Australia, Canada, Indonesia, Poland, South Africa, Turkey, United Kingdom, France,
Brazil, most recently those in Pakistan, India, Argentina, Czech Republic, Mexico,
Malaysia, Thailand, China and Venezuela.
The first Toyota vehicle built outside Japan was a Land Cruiser FJ-251 built in
São Paulo, Brazil, in May of 1959.
The success both on the Japanese market and international market dues to its
desire to make products with a quality. The Japanese believe that nothing is so good that it
can not be improved, so they constantly struggle to increase the quality of everything they
do.This attitude can be expressed by a single word „kaizen”. It means „continuous
improvement” and is the key word which guides them towards perfection.
2. TOYOTA’S INTERNATIONAL MARKETS
A. Toyota’s European Market
Japanese investors have turned to Europe, a market which they consider vital not
only for their products, but also ambitions to become leading global player.
Toyota Motor, the second global car manufacturer, was the one who initiated this
trend. The auto manufactures has eight factories in the “old continent”, in UK, France,
Poland, Turkey and the Czech Republic, with a total of 55,000 employees, including a
distribution network and a research and a development center in Zavetem, Belgium. Any
location it would have operations, the company brings annual profits of million euros from
contracts made. It brings an important chain in research and development related to design
and safety standards.
In Europe in 2003, the Japanese company under three brands owned Toyota,
Daihatsu and Hino, recorded a 4.4% market share.
In 2004 there were 17 production units of Japanese automotive facilities in the
European Union, they produce 1.3 million vehicles and 14 research and development
centers. It is estimated that these investments have created 200,000 new jobs.
The European market is too important to be ignored, said the Japaneses, it is still a
strong market that rivals many companies for and it has a unique industrial base.
Japanese companies have started a series of investments in Russia, where
domestic market is growing. In June 2005, Toyota began building a plant near St.
Petersburg that will produce, starting with the 2007 Camry models.
While the UK benefits from about half of total Japanese investment, Japanese
companies begin to move eastward manufacturing facilities to take advantage of lower
wage costs and to be closer by the more flexible markets of new EU’s members, that some
of them will adopt the euro in a few years. They want to consolidate their positions on the
stable, secure and growing markets, but competitive, too. The European market is one of
On the European market Toyota Motor Corporation recorded increases in sales
from year to year. Its...