Strategic Mgmt 499 - Strategic Choices

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Trident University International
Module 4 Case Assignment
Summer 2011
MGT499 – Strategic Management
Strategic Management: Strategic Choices
Cynthia Strickland, Ph.D.
28 Aug 2011

If there is one observation you can take away after reading Toyoland it has to be that Toyota has made great strides in producing vehicles that were in demand by consumers. From its inception Toyota has simply made cars people need. From their first Toyopet and early Land Cruisers to the luxury models such as the Crown and Lexus, Toyota’s response to global demand and their reputation for quality is clearly an important part of their successful strategy and is why to this day they stand out as a leader among the automaker industry. Their keen sense of demand and timing proved ideal yet again during the economic downturn and the increase in oil/gasoline prices. It was then that Toyota introduced the eco-friendly Hybrid line with the release of the Prius and again captured consumer demand. (Toyota, 2011)

As for Toyota’s competitive strategy they have been very successful in the use of the differentiation strategy by being responsive to the needs of the customer and producing automobiles for the specific target market. Toyota's differentiation strategy combined with its Kaizen management philosophy enables the company to pursue an experienced-based cost leadership differentiation strategy through their continuous manufacturing improvement processes. This combination along with decade’s long experience in managing overall cost and supply chain management streamlines Toyota’s productivity.

You can also make an argument for Toyota utilizing cost leadership strategies as well. With their extensive use of computer technology and robotics they are able to maintain low fixed-costs. They also use this method by strategically placing its manufacturing plants in regions where it most benefits their automobile market demand, again reducing...
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