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Toyota Marketing Strategies

Toyota Marketing Strategies

Introduction

In this essay I will give an overview of Toyota Motor Corporation (TMC) within the framework of international business. The reason of my choice is that during the last decades Toyota is getting a continuously growing share in automobile production, it acts globally, and has an admirable business strategy. Firstly having a glance at the brief history of the company we will look at Toyota's position in the Worldwide Automotive Market. The paper will then present Toyota's strategy and its key initiatives promoted globally, the company's sales and distribution, markets and competition, and production system. Furthermore we shall see which the risk factors for Toyota are. Finally we will consider Toyota's strategy in China automobile market.

Company History

TMC is a limited liability; a joint-stock company incorporated under the Commercial Code and continues to exist under the Corporation Act. Toyota commenced operations in 1933 as the automobile division of Toyota Industries Corporation. Toyota became a separate company in1937. In 2007 the company operated through 522 consolidated subsidiaries (289 Japanese and 233 overseas) and 222 affiliated companies, of which 56 companies were accounted for through the equity method.

Business Overview

Toyota is world's second-biggest auto maker after General Motors Corporation. Toyota primarily conducts business in the automotive industry but in the finance and other industries as well. Toyota sold 8.52 million vehicles in fiscal 2007 on a consolidated basis. The company announced that it had another year of record sales and earnings through 2008. Sales increased 9.8% to $252.8 billion, while operating income edged up 1.4% to $21.8 billion and net earnings rose 4.5% to $16.54 billion.

TMC announced its forecast to sell 9.06 million vehicles globally for the fiscal year 2009 and consolidated financial forecast for the same period. Based on an exchange rate of 100 yen to the U.S. dollar and 155 yen to the euros, TMC forecasts consolidated net revenues of $250 billion, operating income of $16 billion and net income of $12.5 billion (Laing Crouch 2005 pp. 209).

Toyota's automotive operations include the design, manufacture, assembly and sale of passenger cars, minivans and trucks and related parts and accessories. Toyota's financial services business consists primarily of providing financing to dealers and their customers for the purchase or lease of Toyota vehicles. Toyota's financial services also provide retail leasing through the purchase of lease contracts originated by Toyota dealers. Toyota currently holds an 11.09% ownership interest in KDDI Corporation, a full service telecommunications provider in Japan. Toyota's all other operations business segment includes the design and manufacture of prefabricated housing and information technology related businesses, including certain intelligent transport systems and an e-commerce marketplace called Gazoo.com.

Toyota sells its vehicles in more than 170 countries and regions. The company's primary markets for its automobiles are Japan, North America, Europe and Asia. During fiscal 2007, 26.7% of Toyota's automobile unit sales on a consolidated basis were in Japan; 34.5% were in North America, 14.4% were in Europe and ...