This website uses cookies to ensure you have the best experience. Learn more

Toyota Strategy Essay

1298 words - 6 pages

Toyota Motor Corp: Launching Prius

Vardhan Kamat

Executive Summary: Toyota Motor Corporation (Toyota or TMC) is currently working on the first mass produced hybrid car in the world, Prius and is aiming to launch it by end of 1998. Toyota’s new President Hiroshi Okuda wants to advance the launch to 1997 to ensure they are the first to market. Toyota needs to choose between the following choices: (i) Target an aggressive global launch in 1997 (ii) Launch in end 1998 as per the original plan (iii) Target a smooth launch in 1998 allowing for any unforeseen delay till 1999. I recommend that Toyota Motor Corporation (Toyota or TMC) target a smooth launch for end 1998 and allow for any ...view middle of the document...

c) improving proximity to global/American markets (ii) Build an attractive product that targets younger buyers (iii) Lobby regulatory laws such as QRWR to incorporate hybrid technology. A compete SWOT analysis of Toyota has been performed in exhibit B. Toyota has been broadly successful in following a competitive scope giving cost leadership and a broad perceived uniqueness. While marketing the Prius, it must bring focused differentiation with a high perceived uniqueness. Toyota’s valuable resources are TPS (Toyota Production System) and Reliability (see exhibit C for VRIN analysis). If Toyota launches the Prius without addressing all known issues in the car, then the company would damage its reputation and weaken its most valuable resources. Additionally, fear of competition should not push Toyota to release a product which does not match their internal standards. The odds are in favor of Toyota that other car manufacturers are not going to beat Toyota in launching a hybrid car in the market (i) No car manufacturer has launched a successful mass-market alternate energy powertrain till date (ii) Most companies initially developing hybrids dropped out of the race after the CARB refused to consider hybrids under Zero Emission Value (ZEV) (iii) Few companies are working on producing a battery capable of

Toyota Motor Corp: Launching Prius

Vardhan Kamat

generating the adequate amount of power (iv) Other technological challenges for building a hybrid such as overheating of cells, regenerative breaking require innovation and do not have known solutions. Recommendation: I recommend that Toyota should not advance the launch of the Prius to 1997. Instead it should invest the necessary resources in the project and expand the team to ensure a quality, reliable product which can ultimately be mass-produced is prepared by 1998, or take additional time if necessary. This is because (i) it can address the known technical issues (ii) build a superior quality product compared to any competition that is working on hybrid technology (iii) use the time to improve its brand image in the younger generation (iv) address factors such as creating a left-hand drive, improving acceleration as per preference of American consumers and improving resistance to harsher temperatures to make it competitive and attractive to the regular consumer (v) Toyota has a long standing concern with environmental issues and competition launching a hybrid car will not cut into Toyota’s positioning. (v) Innovations built from scratch can require time significantly more than the average and we should look to invest more time than just 33% over the company average of 30 months to market (33% considering a Dec 1998 launch). Cons: (i) Toyota is losing market share in the local market and revenues and net profit is declining. This will impact investment in long term projects such as Prius (ii) Market may change and competition may launch hybrid cars (iii) Costs will increase...

Other assignments on Toyota Strategy

Toyota Motor Company Essay

391 words - 2 pages : Poor allocation of resources as compared to peersW4: Lack of high technical skills of engineering designs when they have high level of skills in productionW5: Loss of control. The management failed to anticipate looming problems and expanded too quickly, ignoring Toyota’s style of disciplined growth. | Opportunities | S0 Strategy | WO Strategy | O1: Growing global automotive industryO2: Toyota poised to benefit from growing joint venture with

Scm In Automotive Industry Essay

3533 words - 15 pages FINAL REPORT SUPPLY CHAIN MANAGEMENT IN AUTOMOTIVE INDUSRTY MARCH 13, 2015 TABLE OF CONTENTS INTRODUCTION 2 OVERVIEW OF SUPPLY CHAIN STRATEGY: 3 FORD: LOGISTICS AND SUPPLY CHAIN STRATEGY 3 About the company 3 Features of Ford system of manufacturing 4 Supply chain Design 4 Push Pull Strategy 5 Best practices 6 TOYOTA: LOGISTICS AND SUPPLY CHAIN STRATEGY 6 About the Company 6 Supply chain design 7 Key

Saturn Case

388 words - 2 pages with Toyota and Union. Group 99 created to get cross-functional insights and more worker involvement Purpose built plant Sself suffiicient in raw materials Dedicated suppliers developed nearby Marketing Strategy Image created of being different Customers used for advetisment Employees used for advetising word of mouth advertisment Friendly and engaging method of sale

Cross Culture

4158 words - 17 pages the name of the function within an organization charged with the overall responsibility for implementing strategies and policies relating to the management of individuals (i.e. the human resources). This function title is often abbreviated to the initials 'HR'. In simple terms, an organization's human resource management strategy should maximize return on investment in the organization's human capital and minimize financial risk. Human resource

Toyota Case Study

1708 words - 7 pages product development and manufacturing lead times. Toyota want to be the industry best and they stand behind their culture to share the wealth of how they do it. 1. What is the relationship between Toyota’s organizational strategy and Toyota Production System? TPS is viewed as the benchmark, the top of the top in manufacturing and products development & Toyota’s strategy is to enhance its corporate value by maintaining its position as a

English 101

1285 words - 6 pages catching the attention of the viewers it also needs to have the information needed to get the viewer to consider buying their product. The two main subjects of selling vehicles are power and good gas mileage. Two advertisements that target the consumer looking for power and good gas mileage are the Toyota Tundra ad featured in the field and stream magazine and the Ford Taurus ad featured in the cosmopolitan magazine. The two ads that will be

General Motors

497 words - 2 pages , leaving GM critically short of operating cash (GM 2013). GM was surpassed by many major competitors, including the rise of Japanese automaker, Toyota, since the 1980s. By 2009, GM filed for bankruptcy, which ended their long period of success and was one of the most shocking corporate failures that America has seen. In order to recover General Motors' had to enlist federal aid, and GM is currently operating $20 billion from government aid (Carty

Report Ford

3109 words - 13 pages zero percent financing to the buyers. Ford, Chrysler and Toyota are offering employee prices to consumers. | 0.06 | 3 | 0.18 | 8. Ford’s recent One Ford strategy focuses on standardizing in the production of vehicles, technologically tracing production throughout the life cycle, cross-shipping of components to ensure speedier time to markets, and finding the Ford-ingredients to meet the automobile needs of the global markets. | 0.09 | 4

Managing Human Resources Globally

2814 words - 12 pages compete.” In addition, the company should make decisions regarding incentive pay, such as bonuses and stock options. In the three examples of global human resource management, these three companies have their unique HRM strategy to succeed in the international markets. As the leading automobile manufacturer in the world, Toyota are focusing on their corporation’s social responsibility in the different nations when they expending its business

Proposal - Mercedes Benz's Formidable Difficulties In Myanmar Luxury Car Market

650 words - 3 pages Objective of Independent Study 1.4 The Scope of the Study Section (2) 2.1 The problem cause & effect diagram 2.2 Theory and concepts used for solving the problem 2.3 Research Methodology Section (3) 3.1 Data Collection 3.2 Data Analysis 3.3 SWOT? Strategy Develop Method? Chapter (1) 1.1 Problem Statement Japan’s Toyota used car brands are leading in Myanmar’s niche

Toyota Production System

1901 words - 8 pages Idea behind the theory Muda is the Japanese term for waste and is a key concept in the Toyota Production System. The definition of waste is basically anything that does not add value. “Value and waste are opposites. "Value" is what the customer is actually willing to pay for the product or service. Economists define value as the ratio of the usefulness of a product or service to its costs. This includes the product's functions and features and

Similar Documents

Toyota Essay

674 words - 3 pages tirelessly to create eco friendly cars and promote the green initiative, As a result the company has rolled out a chain of hybrid solar power cars. Toyota has also marketed the new 2009 Corollas, which are guaranteed to get more miles per gallon of gas than the any full size vehicle in its class. Toyota's marketing strategy is as follows: define marketing goals and policies and devise tactics, and competitive strategy. Toyota's marketing team

Marketing Essay

3012 words - 13 pages 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 supremacy in the international market. JEL classification: M16 Key words: global strategy; international markets; technological innovation; hybrid systems; kaizen 1. TOYOTA MOTOR COMPANY Toyota

Toyota Essay

1019 words - 5 pages Toyota’s Global Production Strategy Toyota Motor Corporation is one of the largest car makers in the world. Although headquartered in Toyota City, about 150 miles west of Tokyo, it has production or assembly facilities in many parts of the world. The company is known for its effective and efficient approach to production management, its quality products, and its outstanding labor relations. The Toyota production system (TPS) integrates craft

Paper

458 words - 2 pages consumer base the time is now to make our mark in history. References Barris, M. (2014, October 1). Toyota exec: No magic formula to engage millennial car buyers. Retrieved May 29, 2015, from http://www.mobilemarketer.com/cms/news/advertising/18818.html FROMM, J., BUTLER, C., & DICKEY, C. (2015). How to engage Millennials: Re-imagining the consumer as a partner, not a target audience, to increase engagement. Journal Of Brand Strategy, 4(1), 27-36. Marcinkus Murphy, W. (2012). Reverse mentoring at work: Fostering cross-generational learning and developing millennial leaders. Human Resource Management, 51(4), 549-573. doi:10.1002/hrm.21489