BUILD BRIGHT UNIVERSITY

SCHOOL OF BUSINESS MANAGEMENT

Master of Business Administration

Class of Marketing Management

Promotion 15 Stage 1

Group SSA24, Room 220, Term 1

Facilitator: Prof. (Dr.) Srey Vuth

Individual Assignment

Submitted by Mr.

Date:

Contents I. Company profile .........................................................................................................................3

a. History ....................................................................................................................................4

b. Toyota’s global vision...............................................................................................................9

c. Toyota’s mission .................................................................................................................... 11

d. Logo and branding ................................................................................................................. 12

e. Principles of Toyota ............................................................................................................... 13

f. Worldwide presence.............................................................................................................. 15

g. History of technological development from 1990 .................................................................... 17

II. Porter’s five forces analysis........................................................................................................ 24

III. Market share and trend........................................................................................................... 27

IV. Marketing strategy ................................................................................................................. 27

V. Key success factors in industry................................................................................................... 29

VI. Zz ......................................................................................................................................... 32

VII. Zz ......................................................................................................................................... 32

VIII. Recommendations ................................................................................................................. 32

IX. References ............................................................................................................................ 32

I. Company profile

Toyota Motor Corporate is a Japanese automotive manufacturer headquartered in Toyota,

Aichi, Japan. In 2013 the multinational corporation consisted of 333,498 employees

worldwide and, as of January 2014, is the fourteenth- largest company in the world by revenue.

Toyota was the largest automobile manufacturer in 2012 (by production). In July of that year, the

company reported the production of its 200-millionth vehicle. Toyota is the world's first

automobile manufacturer to produce more than 10 million vehicles per year. It did so in 2012

according to OICA,[4] and in 2013 according to company data. As of November 2013, Toyota

was the largest listed company in Japan by market capitalization (worth more than twice as much

as 2-ranked Softbank) and by revenue.

The company was founded by Kiichiro Toyoda in 1937 as a spinoff from his

father’s company Toyota Industries to create automobiles. Three years earlier, in 1934, while still

a department of Toyota Industries, it created its first product, the Type A engine, and, in 1936, its

first passenger car, the Toyota AA. Toyota Motor Corporation produces vehicles under 5 brands,

including the Toyota brand, Hino, Lexus, Ranz, and Scion. It also holds a 51.2% stake in Daihatsu,

a 16.66% stake in Fuji Heavy Industries, a 5.9% stake in Isuzu, and a 0.27% stake in Tesla, as well

as joint-ventures with two in China (GAC Toyota and Sichuan FAW Toyota Motor), one in India

(Toyota Kirloskar), one in the Czech Republic (TPCA), along with several "nonautomotive"

companies. TMC is part of the Toyota Group, one of the largest conglomerates in the world.

a. History

1920s-1940s

Toyota was started in 1933 as a

division of Toyoda Automatic Loom

Works devoted to the production of

automobiles under the direction of

the founder's son, Kiichiro Toyoda.

Its first vehicles were

the A1 passenger car and the G1 in

1935. The Toyota Motor Co. was

established as an independent

company in 1937. In 2008, Toyota's

sales surpassed General Motors, making Toyota number one in the world.

In 1924, Sakichi Toyoda invented the Toyoda Model G Automatic Loom. The principle of Jidoka,

which means the machine stops itself when a problem occurs, became later a part of the Toyota

Production System. Looms were built on a small production line. In 1929, the patent for the

automatic loom was sold to a British company, generating the starting capital for the automobile

development.

Vehicles were originally sold

under the name "Toyoda”, from

the family name of the

company's founder, Kiichirō

Toyoda. In April 1936, Toyoda's

first passenger car, the Model

AA, was completed. The sales

price was 3,350 yen, 400 yen

cheaper than Ford or GM cars.

In September 1936, the

company ran a public

competition to design a new

logo. Of 27,000 entries, the winning entry was the three Japanese katakana letters for "Toyoda" in

a circle. But Risaburō Toyoda, who had married into the family and was not born with that name,

preferred "Toyota" because it took eight brush strokes (a lucky number) to write in Japanese, was

visually simpler (leaving off the diacritic at the end) and with a voiceless consonant instead of

a voiced one (voiced consonants are considered to have a "murky" or "muddy" sound compared

to voiceless consonants, which are "clear").

After World War II, Japan

experienced extreme economic

difficulty. Commercial passenger

car production started in 1947 with

the model SA. The company was on

the brink of bankruptcy by the end

of 1949, but the company

eventually obtained a loan from a

consortium of banks which

stipulated an independent sales

operation and elimination of

"excess manpower".

In June 1950, the company produced only 300 trucks and was on the verge of going out of business.

The management announced layoffs and wage reductions, and in response the union went on a

strike that lasted two months. The strike was resolved by an agreement that included layoffs and

pay reductions but also the resignation of the president at the time, Kiichiro Toyoda. Toyoda was

succeeded by Taizo Ishida, who was the chief executive of the Toyoda Automatic Loom Company.

The first few months of the Korean War resulted in an order of over 5,000 vehicles from the US

military, and the company was revived. Ishida was credited for his focus on investment in

equipment. One example was the construction of the Motomachi Plant in 1959, which gave Toyota

a decisive lead over Nissan during the 1960s.

In 1950, a separate sales

company, Toyota Motor Sales

Co., was established (which

lasted until July 1982). In April

1956, the Toyopet dealer chain

was established. In 1957, the

Crown became the first

Japanese car to be exported to

the United States and Toyota's

American and Brazilian

divisions, Toyota Motor Sales Inc. and Toyota do Brasil S.A., were also established.

From September 1947, Toyota's small-sized vehicles were sold under the name "Toyopet" .The

first vehicle sold under this name was the Toyopet SA, but it also included vehicles such as

the Toyopet SB light truck, Toyopet Stoutlight truck, Toyopet Crown, Toyopet Master, and

the Toyopet Corona. The word "Toyopet (Japanese article)" was a nickname given to the Toyota

SA due to its small size, as the result of a naming contest the Toyota Company organized in 1947.

However, when Toyota eventually entered the American market in 1957 with the Crown, the name

was not well received due to connotations of toys and pets. The name was soon dropped for the

American market, but continued in other markets until the mid-1960s.

1960s-1970s

By the early 1960s, the US had begun placing stiff import tariffs on certain vehicles. The chicken

tax of 1964 placed a 25% tax on

imported light trucks. In

response to the tariff,

Toyota, Nissan Motor

Co. and Honda Motor

Co. began building plants in the

US by the early 1980s.

1980s

Toyota received its first

Japanese Quality Control

Award at the start of the 1980s and

began participating in a wide

variety of motorsports. Due to

the 1973 oil crisis, consumers in

the lucrative US market began

turning to small cars with better

Fuel economy. American car

manufacturers had considered

small economy cars to be an "entry

level" product, and their small

vehicles employed a low level of quality to keep the price low. In 1982, the Toyota Motor

Company and Toyota Motor Sales merged into one company, the Toyota Motor Corporation. Two

years later, Toyota entered into a joint venture with General Motors called the New United Motor

Manufacturing, Inc, NUMMI, operating an automobile-manufacturing plant in Fremont,

California. The factory was an old General Motors plant that had been closed for two years. Toyota

then started to establish new brands at the

end of the 1980s, with the launch of their

luxury division Lexus in 1989.

1990s

In the 1990s, Toyota began to branch out

from producing mostly compact cars by

adding many larger and more luxur ious

vehicles to its lineup, including a full-sized pickup, the T100 (and later the Tundra); several lines

of SUVs; a sport version of theCamry, known as the Camry Solara; and the Scion brand, a group

of several affordable, yet sporty, automobiles

targeted specifically to young adults. Toyota also

began production of the world's best-selling

hybrid car, the Prius, in 1997.

With a major presence in Europe, due to the

success of Toyota Team Europe, the corporation

decided to set up Toyota Motor Europe

Marketing and Engineering, TMME, to help

market vehicles in the continent. Two years later,

Toyota set up a base in the United

Kingdom, TMUK, as the company's cars had

become very popular among British drivers.

Bases in Indiana, Virginia, and Tianjin were also

set up. In 1999, the company decided to list itself

on the New York and London Stock Exchanges.

2000s

In 2001, Toyota's Toyo Trust and Banking merged with two other banks to form UFJ Bank, which

was accused of corruption by Japan's government for making bad loans to alleged Yakuza crime

syndicates with executives accused of blocking Financial Service Agency inspections. The UFJ

was listed among Fortune Magazine's largest money-losing corporations in the world, with

Toyota's chairman serving as a director. At the time, the UFJ was one of the largest shareholders

of Toyota. As a result of Japan's banking crisis, UFJ merged with the Bank of Tokyo-Mitsub ishi

to become the Mitsubishi UFJ Financial Group.

In 2002, Toyota managed to enter

a Formula One works team and

establish joint ventures with French

motoring

companies Citroën and Peugeot a

year after Toyota started producing

cars in France.

Toyota ranked eighth on Forbes

2000 list of the world's leading

companies for the year 2005 but slid

to 55 for 2011. The company was number one in global automobile sales for the first quarter of

2008.

In 2007, Toyota released an update of its full-size truck, the Tundra, produced in two American

factories, one in Texas and one in Indiana. "Motor Trend" named the Tundra "Truck of the Year",

and the 2007 Toyota Camry "Car of

the Year" for 2007.

2010s

From November 2009 through 2010,

Toyota recalled more than 9 million

cars and trucks worldwide in

several recall campaigns, and briefly

halted production and sales. Toyota

initiated the recalls, the first two with

the assistance of the U.S.National

Highway Traffic Safety Administration (NHTSA), after reports that several vehicles

experienced unintended

acceleration.

In 2011, Toyota, along with large

parts of the Japanese automotive

industry, suffered from a series

of natural disasters. The 2011

Tōhoku earthquake and

tsunami led to a severe disruption

of the supplier base and a drop in

production and exports. Severe

flooding during the

2011 monsoon season in Thailand affected Japanese automakers that had chosen Thailand as a

production base. Toyota estimated to have lost production of 150,000 units to the tsunami and

production of 240,000 units to the floods.

In October 2012, Toyota announced a recall of 7.43 million vehicles worldwide to fix

malfunctioning power window switches, the largest recall since that of Ford Motor Company in

1996. The move came after a series of recalls between 2009 and 2011 in which it pulled back

around 10 million recalls amidst claims of faulty mechanics.

b. Toyota’s global vision

“Toyota will lead the way to future of mobility, enriching lives around the world with the safest

and the most responsible ways of moving people.

Through our commitment to quality, and respect to the planet, we aim to exceed expectations and

be rewarded with a smile.

We will meet our challenging goals by engaging the talents and passion of people, who believe

there is always a better way.”

Future of Mobility Commitment to Quality

Enriching lives around the World Constant Innovation

The Statement gives voice to who they are as a global enterprise, the values they embody, and the

good that they are striving to accomplish. Designed to inspire all Team Members to even greater

things, the Statement emphasizes Toyota's commitment to quality, innovation and respect for the

planet. At its heart is this signature statement: We aim to exceed expectations and be rewarded

with a smile.

One aspect of the vision is “respect to the planet”

The process for developing an Environment Action Process begins with the parent company in

Japan, Toyota Motor Corporation (TMC). Every five years, TMC develops a global five-year

environmental action plan (EAP).

Eg The ingenuity and persistence of team members at their Cambridge, Ontario plant, have found

a way to reduce annual water consumption of water by more than 13.2 million gallons (50,000

cubic meters).

This has made their plant in Princeton, Indiana, honor as one of only two North American

Recipients of the Water Champion award.

c. Toyota’s mission

“To provide safe & sound journey. Toyota is developing various new technologies from the

Perspective of energy saving and diversifying energy sources. Environment has been first and most

important issue in priorities of Toyota and working toward creating a prosperous society and clean

world.”

the mission statement of Toyota Indus Motors Company Ltd, defines the organization's purpose

and primary objectives. Its prime function is “to provide a safe and sound journey.”

It provides a reason for being, which is one of the most important aspect of a mission statement.

The mission statement is clear and concise and provides focus and a sense of direction.

Toyota’s focus as mentioned in the mission statement is to develop new technologies and to

conserve energy. They also seek to be environment friendly.

d. Logo and branding

In 1936, Toyota entered the passenger car market with its Model AA and held a competition

to establish a new logo emphasizing speed for its new product line. After receiving 27,000 entries,

one was selected that additionally resulted in a change of its moniker to "Toyota" from the family

name "Toyoda". The new name was believed to sound better, and its eight-stroke count in the

Japanese language was associated with wealth and good fortune. The original logo no longer is

found on its vehicles, but remains the corporate emblem used in Japan.Still, no guidelines existed

for the use of the brand name, "TOYOTA", which was used throughout most of the world, which

led to inconsistencies in its worldwide marketing campaigns. To remedy this, Toyota introduced a

new worldwide logo in October 1989 to commemorate the 50th year of the company, and to

differentiate it from the newly released luxury Lexus brand. The logo made its debut on the 1989

Toyota Celsior and quickly gained worldwide recognition. The three ovals in the new logo

combine to form the letter "T", which stands for Toyota. The overlapping of the two perpendicular

ovals inside the larger oval represent the mutually beneficial relationship and trust between the

customer and the company, while the larger oval surrounding both of these inner ovals represents

the "global expansion of Toyota's technology and unlimited potential for the future." The new logo

started appearing on all printed material, advertisements, dealer signage, and the vehicles

themselves in 1990.In predominantly Chinese-speaking countries or regions using traditiona l

Chinese characters, e.g. Hong Kong and Taiwan, Toyota is known as "豊田". In predominantly

Chinese-speaking countries using simplified Chinese characters (e.g. China and Singapore),

Toyota is known as "丰田" (pronounced as "Fēngtián" in Mandarin Chinese and "Hɔng Tshan"

in Minnanese). These are the same characters as the founding family's name "Toyoda" in Japanese,

which translate to "fertile rice paddies" in the Chinese language, as well.

e. Principles of Toyota

Some more Principles:

1. Base your management decisions on a long-term philosophy, even at the expense of

short-term goals

2. Create continuous process flow to bring problems to the surface

3. Use "pull" systems to avoid overproduction

4. Level out the workload

5. Build a culture of stopping to fix problems, to get quality right the first time

6. Standardized tasks are the foundation for continuous improvement and employee

empowerment

7. Use visual control so no problems are hidden

8. Use only reliable, thoroughly tested technology that serves your people and processes

9. Grow leaders who thoroughly understand the work, live the philosophy, and teach it to

others

10. Develop exceptional people and teams who follow your company’s philosophy

11. Respect your extended network of partners and suppliers by challenging them and

helping them improve

12. Go and see for yourself to thoroughly understand the situation (genchi genbutsu)

13. Make decisions slowly by consensus, thoroughly considering all options; implement

decisions rapidly

14. Become a learning organization through relentless reflection and continuous

improvement (kaizen).

f. Worldwide presence

Toyota has grown to a large multinational corporation from where it started and expanded to

different worldwide markets and countries. It displaced GM and became the world's largest

automobile maker for the year 2008. It held the title of the most profitable automobile maker

(US$11 billion in 2006) along with increasing sales in, among other countries, the United States.

The world headquarters of Toyota are located in its home country in Toyota City, Japan. Its

subsidiary, Toyota Financial Services sells financing and participates in other lines of business.

Toyota brands include Scion and Lexus and the corporation is part of the Toyota Group. Toyota

also owns 51% of Daihatsu, and 16.7% of Fuji Heavy Industries, which manufactures

Subaru vehicles. They also acquired 5.9% of Isuzu Motors Ltd. on November 7, 2006 and will be

introducing Isuzu diesel technology into their products.

Toyota has introduced new technologies including one of the first mass-produced hybrid gasoline-

electric vehicles, of which it says it has sold 2 million globally as of 2010, Advanced Parking

Guidance System (automatic parking), a four-speed electronically controlled automatic with

buttons for power and economy shifting, and an eight-speed automatic transmission. Toyota, and

Toyota-produced Lexus and Scion automobiles, consistently rank near the top in

certain quality and reliability surveys, primarily J.D. Power and Consumer Reportsalthough they

led in automobile recalls for the first time in 2009.

In 2005, Toyota, combined with its half-owned subsidiary Daihatsu Motor Company, produced

8.54 million vehicles, about 500,000 fewer than the number produced by GM that year. Toyota

has a large market share in the United States, but a small market share in Europe. Its also sells

vehicles in Africa and is a market leader in Australia. Due to its Daihatsu subsidiary it has

significant market shares in several fast-growing Southeast Asian countries.

According to the 2008 Fortune Global 500, Toyota is the fifth largest company in the world. Since

the recession of 2001, it has gained market share in the United States. Toyota's market share

struggles in Europe where its Lexus brand has three tenths of one percent market share, compared

to nearly two percent market share as the US luxury segment leader.

In the first three months of 2007, Toyota together with its half-owned subsidiary Daihatsu reported

number one sales of 2.348 million units. Toyota's brand sales had risen 9.2% largely on demand

for Corolla and Camry sedans. The difference in performance was largely attributed to surging

demand for fuel-efficient vehicles. In November 2006, Toyota Motor Manufacturing Texas added

a facility in San Antonio. Toyota has experienced quality problems and was reprimanded by the

government in Japan for its recall practices. In 2007, Toyota maintained over 16% of the US

market share and was listed second only to GM in terms of volume. Toyota Century Royal is

the official state car of the Japanese imperial family, namely for the current Emperor of Japan.

Toyota was hit by the global financial crisis of 2008 as it was forced in December 2008 to forecast

its first annual loss in 70 years. In January 2009 it announced the closure of all of its Japanese

plants for 11 days to reduce output and stocks of unsold vehicles.

Akio Toyoda became the new president and CEO of the company on June 23, 2009 by replacing

Katsuaki Watanabe who became the new vice chairman by replacing Katsuhiro Nakagawa.

Toyota has factories in most parts of the world, manufacturing or assembling vehicles for local

markets. Toyota has manufacturing or assembly plants in Japan, Australia, India, Sri Lanka,

Canada, Indonesia, Poland, South Africa, Turkey, Colombia, the United Kingdom, the United

States, France, Brazil, Portugal, and more recently, Argentina, Czech Republic, Mexico,

Malaysia, Thailand, Pakistan, Egypt, China, Vietnam, Venezuela, the Philippines, and Russia.

Toyota's net revenue by geographical regions for the year ended March 31, 2007.

Geographic region Total sales ( Yen in millions)

Japan 8,152,884

North America 8,771,495

Europe 3,346,013

Asia 1,969,957

Others 1,707,742

In 2002, Toyota initiated the "Innovative International Multi-purpose vehicle" project (IMV) to

optimize global manufacturing and supply systems for pickup trucks and multipurpose vehicles,

and to satisfy market demand in more than 140 countries worldwide. IMV called for diesel

engines to be made in Thailand, gasoline engines in Indonesia and manual transmissions in India

and the Philippines, for supply to the countries charged with vehicle production. For vehicle

assembly, Toyota would use plants in Thailand, Indonesia, Argentina and South Africa. These four

main IMV production and export bases supply Asia, Europe, Africa, Oceania, Latin America and

the Middle East with three IMV vehicles: The Toyota Hilux (Vigo), the Fortuner, and the Toyota

Innova.

g. History of technological development from 1990

Toyota is striving to develop automobiles that meet the needs of our customers while at the same time achieving an optimal balance between consideration for the environment, safety,

drivability, comfort and reliability.

Year Engine Driving/Braking Suspens ion Body E lec toronics Materials

1990

|

1999

A luminium c rankshaft

damper pulley

A ctive Four-Wheel Steering

Sys tem

C ylinder head with

laser c ladding

Super-Strut Suspension

Rotary Tri-blade Coupling

5-speed automatic transimission

5 V alve Engine

Bumper made

with Toyota Super

O lefin P olymer

(TSOP)

Magnesium cylinder

head cover

A ir conditioner with

new refrigerant

Fabric with

deodorizing function

Front-passenger

seat airbag

C omprehensive vehicle control

system(i-Four)

Next-generation lean-

burn engine

GPS car navigation

Head Up Display

Back guide monitor with CCD

camera

Smokeless diesel

engine

E lecrtonically controlled

throttle

6 -speed manual transmission

Three-way catalyst

for a lean-burn engine

GPS voice navigation

C ombustion pressure sensor

Diesel oxidation

catalyst

P lastic fuel tank

Three-way palladium

catalyst

Diesel Smoke Control

Sys tem (DSCS)

V ehicle Stability Control

system(VSC)

V ariable Valve T iming-

intelligent (VVT-i)

4-valve direct-injection

diesel engine

Flex Lock-up System

TSOP-5 for interior

parts

Multi-zone automatic air

conditioning

UV-reducing

door glass

Water-repellent

door glass

T itanium nitride coating Brake Assist GOA Collision-

safety body

Fuel Cell E lectric

V ehicle (FCEV)

SRS side airbag

Seatbelts with

force-limiter

Direct-injection

engine(D-4)

T ire pressure warning

system

Toyota Hybrid System

(THS)

SRS curtain

shield airbag

Blind corner monitor

Radar cruise control system

Navigation shift control Bumper

recycling

technology

V ariable Valve T iming

Lift-intelligent (VVTL-i)

A RS

Diesel oxidation

catalyst

C ommon-rail direct-

injec tion diesel turbo

engine(D-4D)

A BS for EBD E lectric power s teering

system

Super CVT

2000

|

2009

Dual-stage SRS

airbags for the

front-passenger

seat

Smart Key System Diesel P articulate

NOx Reduction System

(DPNR)

P ackage tray and

door trim made out of

the kenaf plant

Negative ion generator

A C100V power outlet

Run flat-tires Back guide monitor with

voice recognition

E lectronically C ontrolled Brake

system(ECB)

E lectric 4-wheel drive system

(E-Four)

Dual-stage SRS

airbags for the

driver's seat

Retractable

Metal Top System

Pedestrian-

injury-lessening

body

Bio-plastics

A ir conditioner with

electric heat pump

system using

C O2 refrigerant

New T ire-production method G-BOOK

P ower back

door system

SRS knee

airbags for driver

Toyota Stop & Go

Sys tem

Fuel Cell Hybrid Vehicle

(FCHV-4, FCHV-5)

Toyota Hybrid System

(THS-C, THS-M, THSII)

P re-crash Safety System

Fuel Cell Hybrid Vehicle

(Toyota FCHV)

P re-crash

seatbelt

Toyota Intelligent

Idling Stop System

Dual VVT-i

Stoichiometric D-4

P iezoelectric Common-

rail Type Direct-injection

Diesel Turbo Engine (D-

4D Clean Power)

Diesel Hybrid System

Intelligent AFS

Front and s ide monitoring

Lane-monitoring system

P ollen-removal filter

N ight View system Toyota Eco-plastic

Steering-guided clearance

sonar

Smart Entry and Start

Sys tem

P lasmacluster Ions

Intelligent P arking Assist

system

V DIM

6 Super ECT (6-speed automatic

transmission)

V DIM with active steering

control

SRS twin-

chamber airbag

Lane-keeping assist system

Radar cruise contral with

low-speed tracking mode

S-VSC + Active Control 4WD

Integrated Control

A ctive stabilizer suspension

system

P re-crash Safety System with

millimeter-wave radar and stereo

camera fusion system

(P edestrian detection, s teering and

obs tacle-avoidance assist system)

D-4S

G-BOOK ALPHA

HELPNET

THS II with monitor

speed reduction device

THS II with two-stage

motor speed reduction

device

Wide-view front monitor

V ariable Valve T iming-

intelligent E lectric (VVT-

iE)

SRS seat

cushion airbag

8 Super ECT(8-speed automatic

transimission)

P re-crash Safety System with

driver-monitoring system

(M illimeter-wave radar type)

"Map on Demand"

technology to automatically

deliver differential map data to

car navigation systems

Rear-end Pre-crash Safety

Sys tem (Warning of approaching

rear vehicle, Pre-crash Intelligent

Headrests)

Radar cruise contral with

tracking function

Intelligent P arking Assist

(IPA) system with ultrasonic

sensors

O xygen-level conditioner

Eco Drive Indicator

THSII with two-stage

motor speed reduction

device + full-time all-

wheel-drive system

G-BOOK mX

LED headlight

V alvematic, a next-

generation variable valve

lift mechanism

A ctive Headrest

Heated seat

"C rawl control" system

Kinetic dynamic suspension

system (KDSS)

8 -Speed Sport Direct Shift

transmission

Improved Pre-crash Safery

Sys tem with eye-monitoring

system

A nti-mite allergen

seat fabric

Emergency brake s ignal

Navigation-linked Brake Assist

N ight View system with

pedestrian detection function

6 -speed manual transmission for

front-wheel drive

Toyota Stop & Start

Sys tem

Fuel Cell Hybrid Vehicle

(TOYOTA FCHV-adv)

SRS rear

window curtain

shield airbag

Interior vehicle parts

us ing Ecological Plastic

Front-side P re-crash Safety

Sys tem

P re-crash Seatback

SRS rear-seat

center airbag

Eco-Drive monitor

Touch Tracer Display

Solar-ventilation system

Remote Air Conditioning

system

Harmonious Driving

Navigator

Multi-terrain Select switch

DSRC Unit

Multi-terrain Monitor

Self-restoring coat

ESPO system

THSII Plug-in (with

motor speed reduction

device)

2010

|

2012

V ehicle Proximity Notification

Sys tem

Bio-PET-Based New

Ecological Plastic

"Smart G-BOOK" for

smartphone

New UV-

blocking glass

Horizontally Opposed

D-4S

LDH

(Lexus Dynamic Handling system)

Wrong-way Driving Alert

Sys tem

High-power Lithium-

ion Battery

G-Station

DSSS

(Driving Safety Support

Sys tem)

2 .5 liter 4 cylinder

inline Atkinson cycle

engine

Front wheel drive eight-speed

automatic transmission

P re-collision System effective at

high speeds

Laser screw

welding

A daptive H igh-beam System

(A HS)

Intelligent Clearance Sonar

Drive-start Control

II. Porter’s five forces analysis

The Five Components of Porter’s Five Forces Model are Listed Below:

1. Intensity of existing rivalry (external): This is usually the most important determina tion

of competitive forces. It gauges the level of competition between rivals that compete directly on prices and quality. Examples include: low exit barriers and low storage cots.

2. Threat of substitutes (external): The availability of substitute products increases the chances that a business will lose customers; thus, substitution risk lowers profitability. Examples include: limited number of substitutes and high cost of switching to substitutes.

3. Threat of new competitors (external): New competitors are often drawn to an industry because of the opportunity to make profits. When new competitors enter markets, they

become rivals to existing market participants, which tends to lower the profitability of all market participants. An increase in competition lowers profits with all else staying the same. Examples of the external component include: patents limiting new competition and

industry requires economies of scale. 4. Bargaining power of suppliers (internal): The more pressure suppliers can exert on a

company, the more bargaining power they have over that company. Bargaining power generally increases profitability for the party that exerts it. Examples that affect bargaining power to suppliers include: volume is critical to suppliers and there are diverse distribution

channels. 5. Bargaining power of customers (internal): The more pressure customers can exert on a

company, the more bargaining power they have over that company. Bargaining power generally increases profitability for the party that exerts it. Example that affect bargaining power to customers include: limited buyer choice and large number of customers.

6. A summary of the findings is below:

1. There is low threat of new entrants

2. The bargaining power of buyers/customers is low

3. There is a huge threat of substitute products

4. Suppliers do not have much bargaining power

5. There is a significant amount of rivalry among competitors

The analysis above indicates that the industry is moderately favorable to profitability.

However, in another analysis of the industry, based upon industry-specific news and facts surrounding the

suppliers, buyers, competitors, and more, the results are very different. This is not based on the tallied

results in the appendix:

III. Market share and trend

IV. Marketing strategy

Toyota's marketing efforts in North America have focused on emphasizing the positive

experiences of ownership and vehicle quality. The ownership experience has been targeted

in slogans such as "You asked for it! You got it!" (1975–1979), "Oh, what a feeling!" (1979 –

September 1985, in the US), "Who could ask for anything more?" (September 1985 – 1989), "I

love what you do for me, Toyota!" (1989–1997), "Everyday" (1997–2001)", "Get the feeling!"

(2001–2004), "Moving Forward" (2004–2012), and "Let's Go Places" (2012–present).

Japan

In Japan, Toyota currently maintains separate dealership sales channels. The first sales channel

established in 1946 called "Toyota

Store" sells large luxury sedans such

as the Toyota Century, and

the Toyota Crown. In 1955 the

"Toyopet Store" arrived, originally

established to sell the Toyota

Corona and the Toyopet

ToyoAce truck. (Toyota's five

channel dealerships in Japan

chronology in Japanese.) Toyota also

operated a commercial dealership called Toyota Diesel Shop from 1957 until 1988, that sold

various commercial platform trucks, buses, and forklifts, such as the Toyota Dyna and

the Toyota Coaster. Hino products were sold at specific Hino locations, and shared at Toyota

Diesel Store locations after Toyota acquired the company in 1967. Starting in 1980, the Diesel

Shop also sold the Starlet, Corolla, Corona, Vista and Crown installed with diesel engines. When

the Toyota Diesel Store was disbanded, commercial products were divided between Toyota Store

and Toyopet Store locations.

Company Strategy

Toyota's management philosophy has evolved from the company's origins and has been reflected

in the terms "Lean Manufacturing" and Just In Time Production, which it was instrumental in

developing. Toyota's managerial values and business methods are known collectively as the

Toyota Way.In April 2001, Toyota adopted the "Toyota Way 2001", an expression of values and

conduct guidelines that all Toyota employees should embrace. Under the two headings of Respect

for People and Continuous Improvement, Toyota summarizes its values and conduct guidelines

with the following five principles:

Challenge

Kaizen (improvement)

Genchi genbutsu (go and see)

Respect

Teamwork

According to external observers, the Toyota Way has four components:

1. Long-term thinking as a basis for management decisions

2. A process for problem-solving

3. Adding value to the organization by developing its people

4. Recognizing that continuously solving root problems drives organizational learning

The Toyota Way incorporates the Toyota Production System.

Operations

Toyota has long been recognized as an industry leader in manufacturing and production. Three

stories of its origin have been found, one that they studied Piggly-Wiggly's just-in-time distribution

system, one that they followed the writings of W. Edwards Deming, and one that they were given

the principles from a WWII US government training program (Training Within

Industry). Regardless of the origin, the principles described by Toyota in its management

philosophy, The Toyota Way, are: Challenge, Kaizen (improvement), Genchi Genbutsu (go and

see), Respect, and Teamwork.

V. Key success factors in industry

Key success factors (KSFs) are those elements which persuade the potential of industry firms

to boom in marketplace. On the basis of key success factors customers make a decision between

the rival brands. Toyota is one of the largest global manufacturers of Vehicles. Some of the Key

Success Factors of TOYOTA are given as:

Production and Manufacturing Facilities

Toyota has manufacturing plants in most parts of the globe. It assembles or manufactures

automobiles for local markets. Toyota follows the JIT Production and "Lean Manufacturing",

which is one of the important key success factors. Its business methods managerial views are

known together as the Toyota system. Toyota has long been recognized as industry leader in

manufacturing and production.

Extensive Research & Development (R&D)

R&D values of the Toyota are based on Quality, durability, reliability, value for money,

environmentally-safe, convenient. Toyota has initiated new technologies including first bulk-

produced hybrid gasoline-electric automobile, which had a sale of two million worldwide in 2010.

Toyota has various facilities such as: Advanced Parking Guidance System (APGS) (automatic

parking), a four-speed automatically controlled with buttons for economy shifting and power, and

an eight-speed automatic conduction. It has produced Scion and Lexus vehicles; renowned for

reliability and quality.

Management Philosophy

Toyota’s management values have developed from the firm’s beginning. The company

follows JIT distribution method and adopts the values specified from a (WWII) United States

government training agenda. It is likely that all these and further is factual in spite of the origin the

philosophy illustrated by Toyota.

Innovative Activities

Toyota started the "Innovative International Multi-purpose vehicle" plan (IMV) to optimize

worldwide manufacturing and supply method for multipurpose automobiles and pickup trucks.

The company was also trying to gratify market demand in more than 142 countries globally. IMV

labeled for gasoline engines in Indonesia, diesel engines in Thailand, supply to the countries

stimulating with automobile manufacturing from Philippines and manual transmissions in India.

For automobile assembly, it would use facilities in Indonesia, Thailand, South Africa and

Argentina.

Capable Workforce and Management Philosophy

Toyota implemented the "Toyota Way 2001," an expression of principles and conduct guiding

principle that all Toyota workforces should hold. The principles and beliefs are Continuous

Improvement and Respect for People. It summarizes its principle values and accomplishes guiding

principle with the subsequent five principles.

Distribution & Marketing Activities

Marketing and distribution efforts of Toyota have focused on the positive experiences of

ownership, automobile quality, Meeting diverse needs, high quality sales and services, and close

involvement with customers. Based on the “Toyota Way 2001”, the global Marketing Divis ion

formed The Toyota Way in Sales and Marketing (TWSM). The TWSM gives emphasis to the

principle and values of placing the “customer first” and the importance of integrated action by

dealers, distributors, and Toyota. Distributors from across the globe met in Los Angeles to talk

about the potential of implementing the key TWSM values around the globe. Toyota established

the Global Knowledge Center (GKC) as a platform for sharing and learning best practices from

different regions.

Strategic Management critical success of Toyota, Key success factors of Toyota, KSFs of

Toyota, Toyota critical success factors, Toyota key success factors, Toyota KSFs

Toyota’s 14 principles Key success factor

Toyota is clearly a dominate leader in automobile manufacturing today. The princip les

employed at every level of the company have certainly led to a standard of quality that no one in

the automotive industry can argue with. What these principles are and how they are implemented

within the Toyota Corporation can certainly help the automakers of the United States and indeed

the world achieves the same success.

When these 14 principles are listed and compared with some of the strategies that United States

automakers have employed, it becomes clear why Toyota has succeeded as it has the 14 princip les

are known as the "Toyota Way" and are listed below:

1. Base your management decisions on long term philosophies, even at the expense of

short term goals

2. Create continuous process flow to bring problems to the surface

3. Use pull systems to avoid over production

4. Level out the workload

5. Build in a method to stop and fix problems when they are discovered, this ensures

quality the first time

6. Standardized tasks provide the foundation for continuous improvement and

employee empowerment

7. Use visual control so no problems are hidden

8. Use only reliable, thoroughly tested technology that serves you people and processes

9. Grow leaders who thoroughly understand the work, live the philosophy and can and

do teach it to others

10. Develop exceptional people and teams who follow your company's philosophy

11. Respect your extended network of partners and suppliers by challenging them and

helping them improve

12. Go and see for yourself so that you completely understand the situation

13. Make decisions slowly by consensus, thoroughly consider all options; implement

decisions rapidly

14. Become a learning organization through relentless self-examination and continuous

improvement

VI. Zz

VII. Zz

VIII. Recommendations

IX. References