裴伟捷 Strategic Management
201228207 Toyota’s strategy

Toyota’s Best-Cost Producer Strategy for Its Lexus Line

Toyota has achieved low-cost leadership status because it has developed considerable skills in efficient supply chain management and low-cost assembly capabilities and because its models are so well-positioned in the low-to-medium end of the price spectrum. These are enhanced by Toyota’s strong emphasis on quality.

* How can product quality lower product costs?

Toyota has achieved low-cost leadership status because it has developed considerable skills in efficient supply chain management and low-cost assembly capabilities and because its models are so well-positioned in the low-to-medium end of the price spectrum. These are enhanced by Toyota’s strong emphasis on quality. Toyota Best-Cost Provider Strategy appealing: * When buyer diversity makes product differentiation the norm * When many buyers are also sensitive to price and value

Cost reduction can result in significant product cost saving, manufacturing cost saving, and life cycle cost saving when companies interested in cutting cost implement all 8 the elements of the following cost reduction strategy.
The Cost of Quality can be 15% to 40% of revenue.
The quality costs can be greatly reduced in some cases reducing quality costs can double profits
It is possible to reduce the cost of quality; e.g.: eliminating quality costs starts with designing in quality
Rationalizing away unusual products raises net factory quality and avoids wasting quality resources on inherently lower quality products.

* In which stages of the industry life cycle are low-cost leadership, differentiation, focused niche, and best-cost provider strategies most appropriate?

A competitive strategy concerns the specifics of management’s game plan for competing