...Achieve Competitive Advantage AUTOMOBILES: TOYOTA MOTOR CORPORATION Gaining and Sustaining Long-term Advantage Through Information Technology Case Prepared By William V. Rapp Co-Principal Investigator The College of International Relations Ritsumeikan University Kyoto, Japan 914-945-0630 (Fax: 914-923-1416; 011-81-75-466-1214) E-mail: william.rapp@aya.yale.edu April 2000 SOFTWARE AS A TOOL OF COMPETITIVE ADVANTAGE: AUTOMOBILE INDUSTRY 1 2 3 4 5 Introduction: Objectives of this Benchmarking Study……………………….…….3 Approach: Methodology and Questions…………………………………………....9 Introduction to Case…………………………………………………………….…10 The Industry Context: The Japanese and Global Automobile Industries………….10 Toyota’s Multi-faceted Global Strategy………………………………….………..21 Smart Production (scheduling, buffer stocks, interactive controls) Smart Design IT and Management of Supplier Networks Smart Marketing Responding to Demand Changes Through Smart Production & Design 6 Smart Car…………………………………………………………………….……...42 Environmentally Smart Cars Intelligent Transportation System (ITS) 7 8 Information Technology Infrastructure and Project Selection………………………60 Summary - Controlling the Future…………………………………………………..68 Exhibit 1 - Promotion Plan for Intelligent Transportation System………………………78 Exhibit 2 - Toyota’s ITS Businesses and R&D………………………………………….79 Exhibit 3 - ITS Evolutionary Development……………………………………………..80 Appendix I Summary Answers to Questions for Toyota - Auto Strategy & Operations..81 Appendix...
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...Running Head: Ford Motor Company and the Toyota Motor Corporation Ford Motor Company and the Toyota Motor Corporation AIU – MGT680 Abstract Two major automakers are Toyota and Ford. This paper will compare the two companies to better understand the contributions to for success of each company. This paper will include a SWOT analysis which identifies strengths, weaknesses, opportunities, and threats to these companies. It will also include a plan of action for one weakness to turn them into strengths. It will discuss the current issues being faced by each company and how it affects the global operation because of the importance. Ford Motor Company and the Toyota Motor Corporation Ford Motor Company was started by Henry Ford in 1903 (Heritage, 2014). Toyota Motor Corporation was started by Kiichiro Toyoda in 1935 (50 Years, 2014). While each firm has been able to develop a relationship between the political and economic forces within their communities, they also understand a strategic plan is important and will guide them to an effective relationship within their communities. This type of plan will help the two firms build brand name as both firms have successfully done. The following table will illustrate the main issues Ford and Toyota are facing. It briefly explains the current position or view of each company to help better understand who the two firms view their community responsibilities. Issues Ford Toyota Legal, Social and Economic Environments Follows...
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...COMPANY PROFILE Toyota Motor Corporation REFERENCE CODE: 2A89F017-6903-477A-A94B-628576B59972 PUBLICATION DATE: 9 Jul 2015 www.marketline.com COPYRIGHT MARKETLINE. THIS CONTENT IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED OR DISTRIBUTED. Toyota Motor Corporation TABLE OF CONTENTS TABLE OF CONTENTS Company Overview..............................................................................................3 Key Facts...............................................................................................................3 SWOT Analysis.....................................................................................................4 Toyota Motor Corporation © MarketLine Page 2 Toyota Motor Corporation Company Overview COMPANY OVERVIEW Toyota Motor Corporation (Toyota or "the company") is one of the leading auto manufacturers in the world. It is engaged in the manufacture and sale of motor vehicles. Toyota sells its vehicles in more than 170 countries and regions worldwide. The company has operations in Japan, North America, Europe and Asia. It is headquartered in Toyota City, Japan and employed 338,875 people as of March 31, 2014. The company recorded revenues of JPY25,691,911 million ($256,919.1 million) during the financial year ended March 2014 (FY2014), an increase of 16.4% over FY2013. The operating profit of the company was JPY2,292,112 million ($22,921.1 million) in FY2014, an increase of 73.5% over FY2013. The...
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...Business Policy Toyota was founded in 1937, Toyota Motor Corporation is a Japanese company that engages in the design, manufacture, assembly, and sale of passenger cars, minivans, commercial vehicles, and related parts and accessories primarily in Japan, North America, Europe, and Asia. Current brands include Toyota, Lexus, Daihatsu and Hino. Toyota Motor Corporation is the leading auto manufacturer and the eighth largest company in the world. As of March 31, 2013, Toyota Motor Corporation’s annual revenue was $213 billion and it employed 333,498 people. Toyota Motor Corporation competes in the automotive industry. The past five years were tumultuous for automobile manufacturers. Skyrocketing fuel prices and growing environmental concerns have shifted consumers' preferences away from fuel-guzzling pickup trucks to smaller, more fuel-efficient cars. Some automakers embraced the change by expanding their small-car portfolios and diversifying into the production of hybrid electric motor vehicles. Other automakers were more reluctant to shift their focus from big to small cars, expecting the price of fuel to contract eventually, bringing consumers back to the big-car fold. When fuel prices did fall during the second half of 2008, it was due to the US financial crisis ripping through the global economy. This had a domino effect throughout the developed and emerging worlds, with many Western nations following the United States into recession. Industry revenue fell about 15.4% in...
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...Toyota Motor Corporation Ivan Ruiz DeVry University Toyota Motor Corporation has a long and interesting history behind it. In 1933, Kiichiro Toyoda traveled to the United States. There he visited many car companies that produces automobiles (Toyota Motor Corporation-Company Profile, Information, Business Description, History, Background Information on Toyota Motor Corporation, 2015) there he learned about the production lines on how to build cars. Then shortly upon his return to Japan, he decided that he wanted to establish an automobile establishment with in his father’s factory. In May 1935, he made his very own prototype automobile. At this point and time Japan had very little natural resources, therefore they had every reason to create a highly efficient car. Throughout the years, they did just this and established many research labs in Japan. This all started in 1939 and proceeded to 1940 with the Toyoda Science Research Center and the Toyoda Works. However, Japan became enmeshed with World War II; the attaining of basic material was becoming more and more difficult. Toyoda was making cars with wooden seats, one head light, back brakes only because of the scarce sources available to them. After the war was over Toyoda had about 3,000 employees, but had no operating facilities. Toyota was recognized as one of the most successful true stories of manufacturing history. Because of its growing success after World War II and the company was best known as Toyota after...
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...Toyota Industries Corporation Company Profile Publication Date: 6 Mar 2009 www.datamonitor.com Datamonitor USA 245 5th Avenue 4th Floor New York, NY 10016 USA t:+1 212 686 7400 f:+1 212 686 2626 e:usinfo@datamonitor.com Datamonitor Europe Charles House 108-110 Finchley Road London NW3 5JJ United Kingdom t:+44 20 7675 7000 f:+44 20 7675 7500 e:eurinfo@datamonitor.com Datamonitor Germany Kastor & Pollux Platz der Einheit 1 60327 Frankfurt Deutschland t:+49 69 9754 4517 f:+49 69 9754 4900 e:deinfo@datamonitor.com Datamonitor Hong Kong 2802-2803 Admiralty Centre Tower 1 18 Harcourt Road Hong Kong t:+852 2520 1177 f:+852 2520 1165 e:hkinfo@datamonitor.com Toyota Industries Corporation ABOUT DATAMONITOR Datamonitor is a leading business information company specializing in industry analysis. Through its proprietary databases and wealth of expertise, Datamonitor provides clients with unbiased expert analysis and in depth forecasts for six industry sectors: Healthcare, Technology, Automotive, Energy, Consumer Markets, and Financial Services. The company also advises clients on the impact that new technology and eCommerce will have on their businesses. Datamonitor maintains its headquarters in London, and regional offices in New York, Frankfurt, and Hong Kong. The company serves the world's largest 5000 companies. Datamonitor's premium reports are based on primary research with industry panels and consumers. We gather information on market segmentation, market growth and...
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...University Course # MGT 499 Module 2: Strategic Management: External Analysis In this module, my case assignment was to perform an external analysis of Toyota. Like other companies, Toyota operates in a complex global industry. In order to develop and execute a successful strategy, the Toyota Corporation must take into account the global automotive environment. As part of strategy Toyota must look at their current opportunities in the market. Along with these opportunities, Toyota also faces some threats. Toyota has taken many actions to respond to these environmental contingencies. Based on my analysis, Toyota should continue to focus on its customers, as well as coping with change, and announcing their responses to its customers. Toyota Motor Corporation is a multinational automaker headquartered in Toyota, Aichi, Japan; in the current market they have many opportunities. Currently, Toyota is one of the world’s largest automobile manufactures and employs over 300,000 employees. A major opportunity for Toyota is the new fuel efficient cars that they are producing. With the oil prices reaching record highs, Toyota has the advantage over other car manufactures with their more fuel efficient cars. This is one of their keys to success right now. Toyota is also producing cars that are targeted towards the younger generation of drivers. A great deal of money can be made here also. Acting on any opportunities in the automobile market is a risk...
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...Executive Summary Toyota is arguably one of if not the most success automobile manufacturing companies in the world. With annual revenue of over $200 billion and over 300,000 employees across 27 countries, even the smallest decisions could have huge repercussions. It is the purpose of this audit to offer a in depth review and examination of Toyota’s marketing environment, objectives, strategies and activities to determine what are the key elements of their success, potential issues the need to avoid or improve on and any new opportunities to further maintain their position as industry leaders. Toyota has positioned itself as one of the automotive industry leaders with the highest market share when based on sales volumes. Toyota also maintains this strong market position across many countries. Toyota has developed a wide range of vehicles catering for all types of customers, from low to very high income, with easy access to their products thanks to a global distribution system. The company makes a strong effort to be well rounded and remains strong in innovation, brand reputation, good prices and international relationships. This strong market position is largely attributed to Toyota’s value proposition to provide customers with the best range of models, at affordable prices, all whilst maintaining our long-standing reputation for manufacturing excellence and for producing high quality vehicles that are safe and reliable. The efficiency and capacity of the Toyota production and...
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... --- 000 --- TEN POINTS ANALYSIS OF TOYOTA MOTOR CORPORATION Ten Points Analysis Of TOYOTA Motor Corporation Present by * Tuong Thoai Xuan Doan – 121101201 * Quyen Thi Kim Tran – 121101106 * Kiet Nguyen Tuan Ho – 121101151 * Lam Minh Ho – 121101105 * Khang Thai Tran - 121101 HUTECH University Lincoln Program Submitted to lecturer Luan Thanh Nguyen for Marketing Management 2 Report October 4, 2013 Abstract The international market has becoming more and more challenging for Multinational Corporations to improve themselves and adapt to the new requirements for changes of the market competition and the customers’ satisfaction. The main aim of this research paper is to enlighten the position of Toyota in the international market, for the background reasons for its successes so far. Its leading position in the automobile industry undeniable, and its business strategies in this industry should be attributed as the cores of its successes. Moreover, we will also make lights onto the competitive advantages that have helped Toyota to prevail over the other rivals, together with the necessary internal and external anslyais of the market environment which may reinforce Toyota in its operation and pose challenges for changes and improvements that should be implemented for keeping and maintaining its market leading position. Each element of the SWOT Analysis, PEST analysis and the Boston Consulting Group Matrix can help...
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...General Motors SWOT analysis MGT 521 March 31, 2014 Overview of SWOT matrix “The SWOT matrix is an important matching tool that helps managers develop four strategies.” (David, 2011) This matrix is important to any business because it will show the organizations strengths and weaknesses as well as any opportunities and threats that arise. The SWOT analysis is a great tool for strategic planning, however, it is not as useful for showing how to achieve a competitive advantage. The matrix is divided by SO (strengths –opportunities), WO (weaknesses-opportunities), ST (strengths-threats) and WT (weaknesses-threats). Each type gives a different focus for the organization. Internal Weaknesses and Strengths After the recall of April 2012, and the continuous recalls thereafter, there was a negative impact on the company sales. When looking at the Internals of General Motors, leadership plays a role in the weaknesses that it is having today. The internal strengths of General Motors are a strong market position and brand portfolio. General Motors is brand that people know and respect and many are very loyal to the brand. While using this as a factor, General Motors stated to focus on new research and developments that would give them an advantage over their competition. While they were behind Toyota in the energy efficient car, they are making strides to make their bigger vehicles bore fuel efficient. General Motors is also becoming diversified globally. External...
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...Toyota Motor Corporation is a Japanese company was formed in 1937 by Kiichiro Toyoda as a spinoff from his father’s company Toyota Industries purpose to create automobiles. It’s one of leading auto manufacturing company in the world which includes in third largest car manufacturing company. The company also conduct business in finance and other industries. It sells its vehicles more than 170 countries and region worldwide. Its primary markets is Japan, North America, Europe, and Asia. It’s headquartered in Toyota City, Japan. Company current CEO name is Akio Toyoda. Its revenue in 2012 was ¥18.583 trillion, profit in 2012 was ¥283.55 billion. There are three components in strategic management process which company follows: strategic position, strategic choice, and strategic in action. In first component which is strategic position for Toyota Motor Corporation it will cover PEST and SWOT analysis which will scan its internal and external environment. Purpose of this analysis is to understand the car manufacturer market and to know how to compete other manufacturer by using resources, strengths and how to overcome their weakness. Second component is strategic choice, in this for Porter’s Generic Strategy is applied by Toyota Motor Corporation. Porter’s Generic Strategy will help to analyze level of competition with an industry. On other hand in head of business level strategy Toyota Motor Corporation covers overall cost leadership, differentiation strategy, focus strategy, corporate...
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...Toyota and Ford Comparison L. Johnson MGT680-1203B-12 Abstract Toyota and Ford companies are two of the major players in the auto industry. Comparing the two companies helps to understand what contributes to the success of each. The SWOT analysis can be used to identify weaknesses and a plan of action to turn those into strengths. The current issues faced by each company affect how it operates globally. It is important for each company to understand how each issue affects its operations. Introduction Every firm creates a relationship between the political and economic forces within its community. Toyota and Ford understand the importance of developing a strategic plan that guides them on how to create effective relationships within the community. This helps with building brand name, which both companies have done successfully. Ford and Toyota’s current position on the main issues that they face and a SWOT will be done to show their current market position. Issues The following table will compare the current issues faced by Ford and Toyota. The current position/views of each company are briefly explained. The purpose of this table is to understand how Ford and Toyota view their responsibility to the community. Understanding the companies’ positions help to develop strategic plan suggestions. |Issues |Ford |Toyota | |Legal, Social and Economic...
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...References Advance! Business Consulting B.V. (2009). The Rise of Toyota. Retrieved 03 29, 2016, from Advance Business Consulting: http://www.advancebusinessconsulting.com/advance!/strategic-alignment/strategic-alignment-business-cases/the-rise-of-toyota.aspx Bunkley, N. (2016). Ford won’t blindly chase market share. Automotive News, 90(6708), 0032. Edwards, J. (2012). Mastering Strategic Management ( 1st Canadian Edition ed.). Retrieved 04 01, 2016, from https://opentextbc.ca/strategicmanagement/chapter/types-of-international-strategies/ Funaru, M. (n.d.). Toyota’s business strategies in international markets. Braşov: University of Braşov. Retrieved 04 01, 2016, from http://feaa.ucv.ro/annals/v3_2010/0038v3-004.pdf Gillis, C. (2015, September 13). What’s it really like in the driver’s seat of a driverless car? Mclean’s. Retrieved from http://www.macleans.ca Henry, J. (2015, August 30). One Ford, Part Two; Tweaking The Master Plan. Forbes. Retrieved from http://www.forbes.com Hitt, M., Ireland, R. & Hoskisson, R. (2015). Strategic management : competitiveness & globalization : concepts & cases. Stamford, Conn: Cengage Learning. Negi, R. (2013, 03 27). Toyota: Analysis of Vision Statement, Corporate Level Strategies & SWOT. Retrieved 04 02, 2016, from Slideshare: http://www.slideshare.net/rohannegi/toyota-analysis-of-vision-statement-corporate-level-strategies-swot NYSE. (2016). Financials for Ford Motor Company. Retrieved March 28, 2016 from http://www.google.com/finance...
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...Analysis of Toyota Motor Corporation By: Thembani Nkomo This paper will explore the external and internal environment of Toyota Motor Corporation, and suggest recommendations to sustain its competitive advantage. Analysis of Toyota Motor Corporation by Thembani Nkomo ANALYISIS OF TOYOTA MOTOR CORPORATION TABLE OF CONTENTS 1 COMPANY OVERVIEW 2 EXTERNAL ENVIRONMENT OF THE AUTOMOTIVE INDUSTRY 2.1 Industry Overview and Analysis 2.2 Industry Life Cycle 2.3 Industry Demand Determinants 2.4 Porter’s Five Forces 2.5 Industry Cost Structure Benchmark 2.6 Industry Competitive Landscape 2.7 Major Competitors 2.8 Key Success Factors in Industry 3 INTERNAL ENVIRONMENT OF TOYOTA 3.1 Core Competencies 3.2 Distinct Competency 3.3 SWOT Analysis 3.4 BCG Matrix: Internal Analysis of Toyota Portfolio 3.5 VRIO Framework Analysis 3.6 Toyota’s Efforts in Emerging Economies 3.7 Case Study: Toyota’s Successful Strategy in Indonesia 3.8 Strategic M&A, Partnerships, Joint Ventures, and Alliances 3.9 Analysis of Financial Performance 4 RECOMMENDATIONS 5 APPENDICES 6 REFERENCES Analysis of Toyota Motor Corporation by Thembani Nkomo 1. TOYOTA CORPORATE OVERVIEW: Founded in 1937, Toyota Motor Corporation is a Japanese company that engages in the design, manufacture, assembly, and sale of passenger cars, minivans, commercial vehicles, and related parts and accessories primarily in Japan, North America, Europe, and Asia. Current brands include Toyota,...
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...Advantages and disadvantages of using SWOT analysis to develop corporate strategy. Discuss using examples related to at least two companies. Introduction SWOT analysis SWOT analysis can also be called as SLOT analysis which is a strategic planning or direction for making decision based on available resources to determine valuate the Strength, Weaknesses/limitations, Opportunities, and Threats involved in a project or in a small business (business venture). It mentions the objective of business or a collaborative enterprise project and recognizes the internal, external factors which come in the achieving of objective. This method of analysis is prepared by an American businessman and a management consultant named Albert S Humphrey (Stanford University in the 1960s and 1970s). An objective of a project or a business venture should be only started after the SWOT analysis has been carried out. It would be easy for the organization to achieve its targets/objective. With the help of SWOT analysis decision makers are able to ascertain after a calculation that whether the objective they are planning is capable of been done or not. If not they must choose the distinct objective and the process is done over again. (Source : http://www.google.co.uk/imgres?imgurl=http://swotanalysistemplate.com/wp-content/uploads/2010/04/Slide5.jpg&imgrefurl=http://swotanalysistemplate.com/&h=302&w=604&sz=36&tbnid=ntJM-sR_xbjS7M:&tbnh=61&tbnw=121&prev=/sea...
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