Introduction to Toyota
The report helps in understanding and analyzing the different factors which have been leading Toyota to become quite successful in their venture. The challenges will be also analyzed for Toyota Company while they will be operating globally. With the help of the different theories and models, the proper analysis will be done which will be beneficial for understanding in the detailed way.
Toyota is one of the Japanese Multinational automotive companies which were incorporated in the year 1937. The company is considered to be one of the largest manufacturers of the car and automobiles in entire world which produces more than 10 million vehicles per year. The areas served by the company are worldwide and there are around 366283 employees employed within the company (Toyota.com, 2022). The products and services which are sold by Toyota includes the manufacturing as well as developing automobiles, as well as automobile related kind of products, like the engines, car, air conditioning along with car electronics as well as other devices.
The companies which function across the dissimilar nations along with cultures are also considered as the global organizations. Their origins can be in any of the globalized countries in world trade organization along with super-national systems which is capable of coordinating the different activities of United Nations and the similar kind of companies (Witt 2019).
Toyota is one of the global or Transnational Companies which operate in different parts of the world. The reason behind the same is that it is mainly involved with the international production of the different products and services, foreign investments along with asset management in more than one specific country. It is also capable of setting up the factories in different developing countries wherein the land and the labor are cheap (Wagner and Eidenmuller 2019).
Analysis of the Factors which Triggers Toyota for Expanding Across International Boundaries
In case of Toyota, the company has been able to sell 7.6 million vehicles, and in this more than 5.5 million were out of Japan which is in North America (Reuber et al. 2018). The opportunities are becoming higher in different other markets for Toyota in comparison to Japan.
For Toyota, only market of Japan is quite small, therefore, it becomes quite necessary for them to expand their business operations which will be giving them the scope to increase the production and manufacturing of different products and services.
Due to the economic recession, the Toyota Company is getting different opportunities for expanding their business operations in the world especially in North America and others other than Japan.
Toyota is one of the most known and largest brands and people residing all over the world prefer trusting this brand. Therefore, this gives them the scope to expand internationally and gain competitive advantage.
Volkswagen or other car companies are trying to follow the footsteps of Toyota and therefore, Toyota is becoming unique with the operations and the products which are sold by them (Paiola and Gebauer 2020). Due to this, they are trying to manage the different kinds of products and services which will be beneficial for their growth prospects.
Why did Toyota Expand Globally?
In North America, the labor cost is quite low and therefore, it is giving the company Toyota scope for gaining competitive advantage.
While operating in overseas market, Toyota will be capable of gaining opportunities somewhere and the threats received from other countries will be reduced which will be of high competitiveness.
Main Success Factors of Toyota along with Marketing Strategy, Competitors and the Competitive Advantage
The major success factors of Toyota include the following elements which ae described as follows:
Long term planning is the first factor wherein Toyota has been the first company for developing the Prius Hybrid car which was their long term thinking when the prices of the gas went quite high and people were not able to afford the same (Nenonen, Storbacka and Windahl 2019).
Continuous improvement is the second factor wherein it is considered to be the ethos of Toyota. The company does not support excess material or scrap of the trash on the factory floor. They are trying constantly to grow and gain competitiveness (Lee et al. 2019).
Toyota mainly uses the Differentiated Marketing Strategy for mainly manufacturing as well as selling the offerings as per the customer segments, along with improving managing satisfaction among the customers. Through value based as well as user benefit positioning strategies, Toyota is trying to manage the different kinds of offerings for the customers.
The major competitors of Toyota include Nissan, Hyundai, and Ford along with Chevrolet. The huge as well as efficient Research and Development spending has always allowed Toyota for gaining the competitive advantage over the competitors (Kohtamäki et al. 2019). Therefore, they have become one of the largest automotive manufacturers in entire world.
Analysis of Concept of Globalization Vs Customization and Measures taken by Global Brand for Recognizing Offerings along with Communication Adoption for Local Tastes and Preferences
The globalization mainly means implementing the same kind of marketing strategy across different operations of the firm like Toyota in international market. On contrary, customization means the building the separate kind of marketing strategies for the various marketing environment (Kohtamäki et al. 2018).
Toyota mainly regulated by the Joint Venture, FDI as well as wholly-owned kind of subsidiaries. With this kind of mode of entry in each country, Toyota has been capable of acquiring the economies of scale, as well as labor cost competitive advantage from the expansion (Dilli and Westerhuis 2018). The global brand Toyota has been able to follow the CSR wherein they are contributing towards society through making ever better cars as well as being committed to be highly instrumental in solving the issues of communities wherein they operate.
For instance- Toyota mainly focused on increasing overseas production in the significant manner through establishing the new plants along with expanding the overall capacity of existing plants in accurate way.
Moreover, with the help of the Brand Image as well as Identity, Toyota has been quite successful in adopting the local tastes and preferences of consumers. Toyota is able to stimulate the emotional based rewards like the sense of the fulfillment and identity (Ciulla 2020). Through this, the brand Toyota has been able to inspire the trust along with increasing confidence of customers through managing the triple bottom line approach in the accurate way.
Main Success Factors of Toyota
During the previous years, Toyota has faced the ethical crisis by the vehicle recall. It has attached more importance towards the economic benefits than the CSR practices. It focused on the shareholders and not stakeholders and therefore, it is seen and noted that from then Toyota has been successful in managing the CSR practices. Toyota mainly strives for creating the safe as well as harmonious work environment for the different employees (Ciulla 2020).
Based on the overall mutual trust as well as mutual responsibility, Toyota mainly endeavors for improving the business performance for making it possible for providing the equal employment based opportunities as well as maintain fair as well as stable working conditions. Murphy and Laczniak’s seven perspectives have been adopted by Toyota in the detailed manner wherein they put the customers first and try to provide the best services with the help of the CSR practices (Benitez, Llorens and Braojos 2018). They target the environmental goals which allow them to be ahead of competitors and they have gained the strong competitiveness.
After the COVID-19 pandemic, the company Toyota has been able to face the different kinds of opportunities and threats. In case of challenges, Toyota has experienced immense losses in the overall productivity. Toyota has slashed the production by 40 to 60% due to the COVID-19 pandemic. Due to this, it has impacted their profitability and revenues to a large extent (Benitez, Llorens and Braojos 2018). The different reports from the company help in understanding that output fluctuates month to month, and there were unexpected events with the supply chain of the company. In Japan, during January 2021, the production halted affecting the wide range of the models which included the Corolla subcompact, Prius Hybrid as well as Land Cruiser sports utility based vehicle. There were decline in the overall sales and as a result, it impacted the model to a large extent.
On the other hand, the opportunities which helped Toyota to a certain extent were strengthening the entire corporate structure of company by providing the medical support of the medical frontline staffs as well as medical products to be offered to them. They increased the overall production of the face shield masks along with helped in improving the productivity of the medical equipment manufacturers, and participating in the research kind of activities (Benitez, Llorens and Braojos 2018). These are mainly used for supporting the drug development as well as control of the infection.
Conclusion
Therefore, it is concluded that the Toyota Corporation has been quite successful in their global context wherein this will be quite beneficial for managing the business operations. After analyzing the different aspects of globalization as well as customization, the effectiveness needs to be maintained like Toyota has been implementing CSR practices which helped them grow tremendously.
References
Benitez, J., Llorens, J. and Braojos, J., 2018. How information technology influences opportunity exploration and exploitation firm’s capabilities. Information & Management, 55(4), pp.508-523.
Ciulla, J.B., 2020. The importance of leadership in shaping business values. In The search for ethics in leadership, business, and beyond (pp. 153-163). Springer, Cham.
Dilli, S. and Westerhuis, G., 2018. How institutions and gender differences in education shape entrepreneurial activity: a cross-national perspective. Small Business Economics, 51(2), pp.371-392.
Fuller, B., Liu, Y., Bajaba, S., Marler, L.E. and Pratt, J., 2018. Examining how the personality, self-efficacy, and anticipatory cognitions of potential entrepreneurs shape their entrepreneurial intentions. Personality and Individual Differences, 125, pp.120-125.
Kohtamäki, M., Parida, V., Oghazi, P., Gebauer, H. and Baines, T., 2019. Digital servitization business models in ecosystems: A theory of the firm. Journal of Business Research, 104, pp.380-392.
Lee, J., Suh, T., Roy, D. and Baucus, M., 2019. Emerging technology and business model innovation: The case of artificial intelligence. Journal of Open Innovation: Technology, Market, and Complexity, 5(3), p.44.
Nenonen, S., Storbacka, K. and Windahl, C., 2019. Capabilities for market-shaping: Triggering and facilitating increased value creation. Journal of the Academy of Marketing Science, 47(4), pp.617-639.
Paiola, M. and Gebauer, H., 2020. Internet of things technologies, digital servitization and business model innovation in BtoB manufacturing firms. Industrial Marketing Management, 89, pp.245-264.
Reuber, A.R., Knight, G.A., Liesch, P.W. and Zhou, L., 2018. International entrepreneurship: The pursuit of entrepreneurial opportunities across national borders. Journal of International Business Studies, 49(4), pp.395-406.
Toyota.com 2022 Toyota Corporation (Online) Retrieved from https://www.toyota.com [Accessed on 11th March 2022]
Wagner, G. and Eidenmuller, H., 2019. Down by Algorithms: Siphoning Rents, Exploiting Biases, and Shaping Preferences: Regulating the Dark Side of Personalized Transactions. U. Chi. L. Rev., 86, p.581.
Witt, M.A., 2019. De-globalization: Theories, predictions, and opportunities for international business research. Journal of International Business Studies, 50(7), pp.1053-1077.
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