TOYOTA’S BUSINESS STRATEGIES IN INTERNATIONAL MARKETS
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 supremacy in the international market.
1. TOYOTA MOTOR COMPANY
Toyota Motor Corporation (TMC) is a multinational company that produces cars, trucks, buses and robots, with headquarters in Toyota City, Japan. Toyota is the largest car manufacturer in Asia and second largest producer.
Toyota is one of the three major Asian car manufacturers competing U.S. producers on the world market, the other two are Nissan Motors and Honda Motor. Also the company provides financial services through its subsidiary, Toyota Financial Services, and works in other fields. Automotive products are sold under the names Toyota, Scion and Lexus. Toyota owns a majority stake in Daihatsu and Hino, and 8.7% of Fuji Heavy Industries, manufacturer of Subaru cars.
In 2005, Toyota together with Daihatsu Motor Company produced 8.54 million vehicles, almost 500,000 less than General Motors in that year. In July 2006 Toyota exceeded sales of Ford cars, but the American manufacturer has regained a month later. Toyota has a significant market share in U.S., Europe and Africa and is the market leader in Australia.
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...
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