Strategy Analysis of Toyota

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Module Code: PM018

Class/Group: Y

Module Title: Theory and Practice of Strategic Management

Assessment Title: Report

Assignment Title: The change and development of TOYOTA’s marketing strategy

Tutor Name: Paul Matthews

Student ID Number: 200863025

Date of Submission: 9/ 3 / 2012 Friday

Word count: 2714

Content

Executive Summary1
1. Introduction2
2. Environment and market shifting2
3. SWOT analysis2
3.1. Strength2
3.1.1 The largest automobile company of the world2
3.1.2 TMC Hybrid System (THS)2
3.2. Weakness2
3.2.1 Products’ quality call in question2
3.3. Opportunity3
3.3.1 Shifting of consumer behavior3
3.3.2 Car safety is improved in 20113
3.4 Threats4
3.4.1 USA Three big discount strategies4
3.4.2 Global financial crisis4
3.4.3 Emerging entrant, cars with make in china4
4. Value Chain5
4.1 Technology development5
4.2 Procurement5
4.2.1 Fair trade based on an open door principle6
4.2.2 Mutual development based on mutual trust6
4.2.3 Improvement of eco-friendly green procurement6 4.2.4 Localization procurement goes with good corporate citizenship6 4.2.5 Obeying the legal6
4.3 Logistics6
4.4 Operation6
4.5 Service7
5. Culture influence in TMC7
6. Conclusion8
Bibliography9
Appendixs11

Executive Summary

As the biggest automobile company in the world, Toyota went through this recent year with an unbelievable roughly circumstance. Suffering the global financial crisis, massive vehicle recall etc, all of these events pushed the Akio Toyoda who is the Toyota president and CEO making a statement “I’m deeply sorry.” to the world again and again. This report will evaluate a noticeable strategy change that Toyota shifts it products structure from petrol vehicle to hybrid vehicle gradually. Moreover, how does strategy changing helping it to work out the possible impact which triggered by circumstance changing and the competition that comes from same industry. Then, using SWOT analysis TOYOTA status quo first of all, secondly, it will go through value chain that reveals how Toyota improve it margin effectively. Thirdly, briefly, it will investigate how the culture influence help it runs a business in a correct way.

1. Introduction

In 1937, Toyota Motor Corporation (TMC) had been established as a spin-off from TALW (Toyota Automatic Loom Works) (Odaka, 1988, P.111). In 2010, Toyota’s employees achieved 317,734 (ADDFINAL, 2011) and produced about 8.6 million vehicles (see appendix 1) at that year, which help it ranking in the first place of automobile manufacturer successfully around world (OICA, 2010). As a national ranking of symbol, obviously, TMC has widely recognized as a nameplate which represents the Japan Manufacturing. Being the leader of automobile industry, it is always under a high pressure and struggle to cope with the challenge which comes from the same industry and market shifting. This article will argue that what can be learnt from the current situation of TMC and what experience can be used to improve firms’ margin.

2. Environment and market shifting

Increasing concerns about energy security, climate change and environment pollution have pushed governments to ponder a strict measures that innovation the clean technology. In 2010, European commission published the new vehicle emission law and setting a new emission standard for new vehicles which have been manufacturer after 2017 (Transport & Environment, 2010). Base on the new law, the cars selling in EU needs to meet the requirement that emission should be lower than 175g CO2/km in 2017 and 147g CO2/km in 2020 (ibid). Confronted with this strict law, and the status quo that fossil fuel will be used up in next several decades, most of automobile companies struggle to change their research & development (R&D) direction. For instance, BMW...
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