International Business Strategy of Toyota

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          A Brief Understanding of IBS ‐‐A Case Study of Toyota                             

A Brief Understanding of International Business
Strategy

--A Case Study of Toyota
 
by Peter LIU, peterliu@acculine‐mfg.com 
 
MSc International Business
 
 

P14B45 International Business Strategy

Lecturer:

Dr Yee Kwan Tang

Sponsored by

10 May 2010
 
Acculine Precision Manufacturing Company
Tel: 0086-574-28887315, Fax: 0086-574-28875303, Web: www.acculine-mfg.com, email: info@acculine-mfg.com

A Brief Understanding of IBS --A Case Study of Toyota

Page 1 / 12

Content 

Introduction ........................................................................................................................... 2

Basic Concept of International Business Strategy ................................................................. 2 Brief Background of The World Auto Industry .................................................................... 4 Brief Background of Toyota .................................................................................................. 4 IBS of Toyota ........................................................................................................................ 6 Entry to US Market ........................................................................................................... 7 Americanization as A Way of Localization ...................................................................... 8 Recommendations ................................................................................................................. 9 Conclusion ........................................................................................................................... 10 Reference ............................................................................................................................. 11

 

Acculine Precision Manufacturing Company
Tel: 0086-574-28887315, Fax: 0086-574-28875303, Web: www.acculine-mfg.com, email: info@acculine-mfg.com

A Brief Understanding of IBS --A Case Study of Toyota

Page 2 / 12

Introduction

Any ambitious enterprise that is going to achieve and sustain profitability and profit growth, no question, would have to expand business abroad, to gain extra market and sales, and profit in result, by employing benefit of location and large scale economies, experience and learning sharing effects. However, as it has been self-proven to countless firms, foreign markets are never a flat plain field without trap, instead absolutely represent an adventure. The adventurers would face immense issues like cross-border management coordination, unions, local consumer taste and preference over products and services, local government regulations, majority among which stem from the environmental divergence in different markets, legally, economically, or culturally. Automotive industry is born for global market, due to the intrinsic pressure for cost reduction, as the initial high cost per unit retards the market expansion to great degree. Meanwhile, most of time, cars are consumer products whose markets are filled with local taste and preference, and local government regulations because the industry is never too little for local government to neglect the influence of automotive industry over whole local economy. This paper will go through the basic thinking of international business strategy concept, and focus on the current world largest automaker Toyota’s strategy, in the context of the past and ongoing environments.

Basic Concept of International Business Strategy

Facing the firms with foreign market orientation are two apparently contradictory goals, to reduce cost by product standardization and, subsequently, central production at optimal location in the world and to cater to local demands for customization by product differentiation, localized marketing mix and so on which unquestionably tend Acculine Precision...
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