Toyota Strategy

Topics: Toyota Production System, Toyota, Marketing Pages: 6 (1877 words) Published: July 21, 2011
Seventy four years since its founding, Toyota Motor is almost at the pinnacle of the global auto industry, having overtaken Ford Motor and General Motors in vehicle sales. Toyota was established in 1937 in Japan. Toyota has grown from being a small Japanese carmaker in the 1960s to the biggest carmaker in 2007, outranking General Motors. The founding principles for this success were embodies by the “Toyota Way” – a respect for learning, truth, trust, team-work, challenge and continuous improvement. First time it introduced its product Corona in the US in 1965. By the 70’s, Toyota was the best-selling import brand in the US. During the 80’s, it started manufacturing vehicles in the US. In 2006, it had globally become the second largest car seller and third largest car sellers in the US having more than fifteen percent market share. It is estimated that by 2008 it is going to be the number one car producer and seller both in the US and across the world. This profound success of Toyota is associated with its most proficient market strategy. The case of Toyota notably proves that how important is market strategy in the life of a company to be a market leader. Toyota Company has so many successes in its production history. Toyota even in Japan and in worldwide is one of most important and successful multinational companies. One of the most important reasons for success of a company is its marketing strategy. In continue I will try to peruse Toyota's success reasons and good planning for achievement in international market around the world. The reasons for achievement of a company in international markets is belong to variety elements such as good production and assembly system, good strategy both in local and international markets, good planning and managing and so on. In continue extend each subject.

Toyota Production System (TPS)

The history of just-in-time and other Japanese manufacturing innovations can be traced to the Toyota Production System developed by Taiichi Ohno. "The Toyota Production System (TPS) is an integrated socio-technical system, developed by Toyota that comprises its management philosophy and practices. The TPS organizes manufacturing and logistics for the automobile manufacturer, including interaction with suppliers and customers."1 "The Toyota Production System (TPS) was established based on two concepts: The first is called "jidoka" (which can be loosely translated as "automation with a human touch") which means that when a problem occurs, the equipment stops immediately, preventing defective products from being produced; The second is the concept of "Just-in-Time," in which each process produces only what is needed by the next process in a continuous flow."2 Jidoka (Auto-Activation)

The aim of this system is to delegate responsibility to the workers for the quality of products from the elementary production tasks themselves. In practice this innovation means that line workers not only have the right, but are obliged to take the time which is necessary in order to carry out the tasks necessary to ensure the maintenance of the highest quality standards at each stage of production, even while production is taking place. Just-In-Time

This system is a method of production programming involves a series of innovation in the production and the preparation of the work more generally in the logistics of production and in the management of the flows and stocks of intermediate and semi-finished goods. These innovations take together constitute a system of production with much reduced stocks, made possible a system of information processing unique and unprecedented in the history of work organization.

Supply Chain Management
Supply chain or value chain management is composed of the operational or tactical activities and can be defined as ‘managing the entire chain of raw material supply, manufacture, assembly and distribution to the end consumer (Jones 1989 cited in Lowson 2002). Christopher (1998)...
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Toyota Target Market and Positioning Strategy V11 Essay
  • Microenvironmental Factors Affecting Toyota Essay
  • Toyota Financial Analysis Essay
  • Essay about TOYOTA CASE STUDY
  • Automotive Industry and Toyota Essay
  • business ethics Toyota 2000 Essay
  • Major Competitors for Toyota Company Research Paper
  • Toyota Swot Analysis 2013 Essay

Become a StudyMode Member

Sign Up - It's Free