BCG Matrix Analysis
Toyota motor corporation would be the best choice for our case study since it has such as a long history in the motor industry.
The company also has over time recorded good performance therefore serving as a good model to learn from.
The corporation has different business units which are managed differently.
Toyota is a multinational corporation and by the use BCG Matrix we can be able to know where each product from the different business units falls.
As discussed earlier, BCG matrix classifies products into stars, cash cows, question marks or even dog.
In each stage, the company takes a specific action to ensure it remains relevant.
This model facilitate the corporation in treating each brand of a product in the best deserving way.
STARS
As observed in. stars happens to be the greatest support f a business. They occupy the largest market share and also have the highest growth rate.
In our case, we have the Lexus, land cruiser SUV and the Prius hybrid.
as discussed earlier this model helps the cooperation know the right action to take in each category.
In this case the corporation wise step is to hold the brands in the market and also protect the market share.
This steps ensures the company stays at the top f its key competitors
Question marks
This are some of the potential brand that a company may have. there is great hope in this brands/ product as they have a high growth rate despite them occupying a small market share.
In our case, the corporation has great hopes in brands such as scion. Camry among others.
The company now aims to see that this brands occupies a bigger market share
All it is doing here is trying to build these brands so that they can penetrate into the market.
This are products that are already at their maturity stage.
The products already occupies a big market share but on the same note do not have an appealing growth rate.
In our case study, the corporation has several brands such as corolla Camry and the Innova. in this category, the company seem to be harvesting so as to get a lot of profits before it starts declining.
Dogs
This are product that are at their worst stage. They experience the lowest market growth and also occupies a small market share.
in the Toyota corporation, such brands includes Celica and the tundra pick-ups.
Business Portfolio Recommendations
the company here is working in diversification where the look for alternative brands.
it could also decide to completely drop the product.
As observed, the nine cells can be grouped into three categories as the colors explicitly show.
This simplifies the decision making process in the strategic management.
Below are the faces:
- Go on
This phase passes a signal that one can go ahead to making decision.
For example, since Toyota has been globally accepted, it should now go ahead to perusing larger markets for its corolla brand.
As observed, the nine cells can be grouped into three categories as the colors explicitly show.
This simplifies the decision making process in the strategic management.
Below are the faces:
- Go on
This phase passes a signal that one can go ahead to making decision.
For example, since Toyota has been globally accepted, it should now go ahead to perusing larger markets for its corolla brand.
This phase on the other hand directs a company to hold on the current strategies.
In our case, the brands that falls on these category are Cuore and Quaris. The company is giving this product some good promotion techniques.
In some cases brands in this category turns out to be the best giving the company some huge amounts of profits.
This is a stage that gives a directive to a company to stop or rather drop the product.
This makes the company avoid dangers that would arise from arise from uninformed decisions.
The company is able to stay in an updated position at all times.
This corporation should work hard in the expansion of its business into the emerging countries. This can only be possible by a thorough monitoring of the markets so as to know any changes. A big market share is an added advantage over its competitors as observed in the analysis.
The company should also strive to establish strong production and supply structures so as to attain a good and favorable pricing as well as deliver its products in all its market in the right time. This enhances the customer service the company gives to its customers. this is a source of competitive advantage.
the company can work in making the Lexus brand a priority in the Chinese region. This is one way of making the company competitive enough especially in the case of luxurious category.
Another recommendation will be for the corporation to increase the number of production facilities in the region of Asia. This will aid in the creation of delivery channels that are cheap and close to the customers.
Enhancing Overall Dynamic Capability
The company should also do away with the position of middle management to enable engineers have a bigger authority on the customers needs in a car and specification and also i8n the development of new cars.
Toyota had really done a lot in securing its market share where it has outperformed the industry in a great way. the company should now work toward producing smaller vehicles that re fuel economical for the growth of economies.
The company should also seek to know the neglected category of people in the economy so as to satisfy them accordingly. This will ensure that they have covered the market conclusively.
For a company to continue thriving in search an environment, it must have great dynamic capabilities.
The environment surrounding every business is not static and therefore keeps on changing with time.
Toyota Motor corporation has however continued build and integrate both its internal and external competencies in response to the changing environment
IDENTIFYING AND ASSESING OPPORTUNITIES
This company has set its bar very high when it comes to assessing and identification of opportunities.
The company heavily relies on the SWOT analysis as a model assessing its environment and this has been one of its main success contributor.
The company has also invested heavily on research and development and this helps a lot in identifying trends in the industries and also new tastes of the customers.
MOBILISATION OF RESOURCES
The company has put into place GREAT STRATEGIES TO ENSURE that it effectively mobilize resources.
One of the ways this has happened is by ensuring that its methods of product6ion are cost effective . The value chain process is also cost effective to ensure the end product is at a friendly price to the customer.
The company has also continually invested in the promotion of its products in the region it is already in and also in the region it is aspiring to venture in.
TRASFORMATION AND RECONFIGURATION OF STRATEGIC ASSETS
Toyota motor corporation has been widely known by how they coordinate and integrate their internal assets.
This has remained to be one of the major reasons the company has maintained such a high level of performance.
This has been possible by their efforts to link the experience of the customers with the design choices available in the engineering docket.
Despite the great success made by the company, it still has some responsibilities to improve their current state of dynamic capabilities.
The company has been innovative but it need to now focus on production of products that are energy saving and at the same time environmentally conscious as well as incorporating the features that are demanded by the customers. this will make their products more appealing even to low income earners.
Toyota also has a great responsibility in prioritizing safety of its customers by creating products that are safe for usage. This will indirectly enhance their dynamic capabilities as customers will prefer their products.
The company should also stress on the compliance of the laws set by the relevant government as well as actively participating in social activities. This will enhance their image to the general public.
References
Birkinshaw, J.M. and Mol, M.J., 2006. How management innovation happens. MIT Sloan management review, 47(4), pp.81-88.
Bourgeois, L.J., 1985. Strategic management from concept to implementation. Graduate School of Business, Stanford University.
Chunhachinda, P., Dandapani, K., Hamid, S. and Prakash, A.J., 1997. Portfolio selection and skewness: Evidence from international stock markets. Journal of Banking & Finance, 21(2), pp.143-167.
Di Stefano, G., Peteraf, M. and Verona, G., 2010. Dynamic capabilities deconstructed: a bibliographic investigation into the origins, development, and future directions of the research domain. Industrial and corporate change, 19(4), pp.1187-1204.
Dosi, G., Nelson, R. and Winter, S. eds., 2001. The nature and dynamics of organizational capabilities. OUP Oxford.
Fabry, B., Ernst, H., Langholz, J. and Köster, M., 2006. Patent portfolio analysis as a useful tool for identifying R&D and business opportunities—an empirical application in the nutrition and health industry. World Patent Information, 28(3), pp.215-225.
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