Toyota Case Analysis

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TOYOTA
A CASE STUDY ANALYSIS

GROUP IV

Garduque, Edmund Peweeh B.

MARKETING MANAGEMENT

HOLY CROSS OF DAVAO COLLEGE
PROF. LORRIBELLE ROQUE OCENA

SUMMARY

Toyota Motor Corporation is Japan’s number one carmaker. Toyota has international presence in over 170 countries worldwide.  It manufactures cars, pickups, minivans, and SUVs include models such as Camry, Corolla, Qualls, Prado, Solara, the luxury Lexus line, and full-sized pickup trucks.  It has huge financial strength, with large capitalizations, high technologies and high cost cutting strategies.

SWOT ANALYSIS

Strengths
• Vast size/resources- Global brand and is one of the largest car manufacturers in the world along with General Motors.
• 60% of products sold at U.S. are made in U.S.
• Diverse brand- Brand portfolio, especially its well recognized brand “Lexus” • Japan’s largest car manufacturer- A highly recognized company within a profitable market.
• Production engineering innovation- One of the most hi-tech product engineering divisions. (Global Body Line) could make different models on a single line

Weaknesses
• Early attempts at the youth market, minivans and big pickup trucks all disappointed. • Remains dependent on the U.S. business for some 70% of earnings • Limited to Japanese designed cars

• Operational weakness- High level of capital expenditures in new product lines and opening of new production facilities.

Opportunities
• Forecast future era of full-size trucks and luxury, environmental and youth cars • Cost reduction strategies- This will allow Toyota to become more competitive and more flexible for future shifts in the market.

• Toyota is very active in new technologies, proven with its hybrid vehicle, the Prius (eco-friendly gasoline-electric car)

Threats
• Strong competition-These are the same as General Motors. Toyota faces a large number of competitors.
• GM quality upswing, finishing $4.3 billion revamp of Cadillac

Toyota’s Top Sellers
|Europe |America |Brazil |Argentina |Africa |India |China |Japan | | |Yaris |High European
Look | | |Economic Troubles | | |Low |High
Known as the Vitz | | |Solara | | | | | | | | | | |Corolla
Sedan | | |High | |High | | | | | |Scion xB | | | | | | | | | | |Lexus |Low |High Luxury Leader | | | | | | | | |Avensis |High | | | | | | | | | |Prado SUV | | | | |High | | | | | |Qualls SUV | | | | | |High | | | | |Prius | |High

Eco-Friendly gasoline Electric Car | | | | | | | | |Camry | |High Top Selling | | | | | | | | |
STATEMENT OF THE PROBLEM

1. Primary Problem

- Toyota poor decision-making due to cultural insularity.

2. Secondary Problem

- Poor styles of their product
- led to miss Opportunities

AREAS OF CONSIDERATION

• Toyota’s History and Background which is dominated by Toyoda family

(Toyota is famously insular, being headquartered in southern Aiichi prefecture and still dominated by the Toyoda family. That insularity leads to missteps: In mid-June, Toyota had to delete part of a U.S. television commercial for its new Scion brand that showed a character consuming peyote and then hallucinating. And in China, the company used the Chinese lion, one of the Middle Kingdom's most cherished icons, in ads for the sport utility vehicle Prado. The Chinese, mindful of Japan's wartime occupation, were outraged. The ad was withdrawn.)

a.) Make Adjustments that would introduce to Japan management new insights regarding foreign consumers.

Advantages:

- The company can still centralize decision-making in Japan - It would open the minds of management not only to Japanese consumers. - It will make Toyota open for foreign opportunities

- Cultural Problems in different nation could be avoided

Disadvantages:

-Add up to expense
- Long Term Process

b.) Hire foreign employees

- Could give a lot of...
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