New investment by Toyota in factories in the US and China saw 2005 profits rise. Diversified product range, highly targeted marketing and a commitment to lean manufacturing and quality. In 2003 Toyota knocked its rivals Ford into third spot, to become the World's second largest carmaker with 6.78 million units. Many are now saying that Toyota may become the largest automaker surpassing General Motors by next year. Uses marketing techniques to identify and satisfy customer needs, and as emphasized by the case video, on customer relationships.
Manufacturers need to make sure that it is their models that consumers want versus competitor's. Most products targeted to the US and Japan only - shifting attention to the Chinese market. Movements in exchange rates could see the already narrow margins in the car market being reduced. Company needs to cautiously keep producing cars in order to retain its operational efficiency, especially in the case of the Prius, which the case study states had a back-order dating back six months.
Lexus and Toyota now have a reputation for manufacturing environmentally friendly vehicles. Lexus has RX 400h hybrid, and Toyota has it Prius. Rocketing oil prices have seen sales of the new hybrid vehicles increase. Toyota has also sold on its technology to other motor manufacturers, for example Ford has bought into the technology for its new Explorer SUV Hybrid. Toyota is to target the 'urban youth' market. The company has launched its new Aygo, which is targeted at the streetwise youth market.
In 2005 the company had to recall 88,000 SUVs and pick up trucks due to faulty front suspension systems. Toyota faces tremendous competitive rivalry in the car market. Competition is increasing almost daily, with new entrants coming into the market from China, South Korea and new plants in Eastern Europe. Exposed...