TOYOTA- Taking out costs and value
TOYOTA- Taking out costs and adding value
I. What was value chain strategy that Toyota pursued?
II. How could Toyota implement that strategy?
How could value chain operations contribute to value and competitive advantage of the firm? I. Value chain strategy that Toyota pursued:
Value Chain: It is a series of value-added processes. There are continuous efforts to reduce “on-value added waste" so that what remains is just something that has added value in the production process. Toyota produced and sold over 6.5 million vehicles around the world in the end of June 2004. Toyota introduces the whole series of operation about car and truck production with three main objectives: reducing cost, increasing quality, controlling the production process more tightly. The business strategy of Toyota based on supply chain management which extending from parts suppliers and dealerships. with a small group of leading suppliers to Toyota. Moreover, supply chain management of Toyota is enormously effective that Toyota pioneered the arrival of stock from suppliers using method which involve close contacts with suppliers which call just -in -time systems. When stocks in the factory run low, they are replaced by stocks from suppliers very rapidly; the information technology and the Internet are transformed the linkages and the interrelationships between the different parts of the value chain. It calls just- in- time production. Toyota has always had problem transferring its production system beyond its factories to other areas of the value chain. Toyota in obtaining raw materials, they do not process their own, or create your own, they use a third party, they handed the small parts, such as leather seats, steering wheel, tire, to local companies, but to the nature of strategic importance, like a machine, they import from Japan (center), its...