STRATEGIC MANAGEMENT PLAN

Strategic Management Plan

Table of Contents

Executive Summary1

Introduction1

Company background2

Assessment of current business strategy2

Strategic Focus and Plan2

Mission Statement of the Company2

Toyota's Goals3

Core Competency and Sustainable Competitive Advantage4

Situation Analysis4

SWOT Analysis5

Internal Factors Strengths Weaknesses5

External Factors Opportunities Threats6

The SWOT Analysis Matrix7

Value chain analysis7

Where do they Purchase?7

Why do they Purchase?8

Why Potential Customers Don't Purchase9

Industry Analysis9

Company analysis10

Porters Five Forces Model10

External Environment Analysis11

Customer Analysis11

Assessment of current business strategy12

Product-Market Focus12

Developing a Strategic Focus12

Financial data and Projections13

Strategy15

Pricing mechanism15

References16

Strategic Management Plan

Executive Summary

Toyota Motor Company is a market leader in the car manufacturing, assembling and distribution industry worldwide. The company focuses on its strategic plans, mission Statement and on the core competencies to achieve sustainable competitive advantage. The company has a diverse range of products, and new market techniques are being adopted to increase sales which are their major strength. However, they also need to maintain their client base and production. Fault products serve as a threat to the company.

The company mostly purchases raw materials from the suppliers online and they also encourage customers to call on their toll free numbers because doing the work online saves a lot of cost. The company has therefore, developed a competitive edge over the customers. However, there are also some customers who prefer to purchase cars from other companies, depending on their social status. Toyota serves all kind of customers from all kind of income groups and demographics. The company focuses more on product differentiation, and this has enabled it to achieve financial success. The three strategies that the company must adopt to improve its strategic position are evaluation and control, strategy and p mechanism (Armstrong & Kotler, 2002).

Introduction

I have been hired as a consultant to develop a strategic management plan of Toyota Motor Company, and it includes the firm's internal and external environment. Moreover, recommendations to create and sustain long-term competitive advantage have also been mentioned.

Company background

Toyota Motor Company is a market leader in the car manufacturing, assembling and distribution industry worldwide. The reason why the company has been performing well is due to the effective management style. Many other salient factors are there too, which has enabled the company to perform well. However, the market structure of Toyota Motor Company cannot be defined properly since various individuals have different viewpoints. Although Toyota Motor Company is dominant in the market and the differentiation strategy, has also made the company enjoy a monopolistic presence. Moreover, the market structure has also been seen as an oligopoly and this is because of the presence of various competitors. Therefore, the company keeps a strict eye on the competitors to ensure that it maintains market leadership (Booz, 2007).

Assessment of current business strategy

Strategic Focus and Plan

The three aspects of the corporate strategy of Toyota Motor Company that have been developed with reference to the impact of the strategic management plan are mentioned below.

Mission Statement of the Company

Through automotive manufacturing, the company aims to create a flourishing society (Armstrong & Kotler, 2003). Therefore, the aim of the company is to achieve stable as well as long-term growth in ...