TOYOTA MOTOR CORPORATION

The Strategic Change of Toyota Motor Corporation

Abstract

In this report, the writer highlighted the strategic changes in Toyota. The main theme of the report is to give readers an overview regarding the strategies that are used at Toyota in order to be the market leader. The writer talked about the Toyota Way model and the Toyota old strategies that were used and also mentioned new strategies that are helping Toyota to give competitive edge to its customers. At last, the writer concluded the report by focusing on the future of Toyota within 3-5 years.

Table of Contents

Introduction4

The Reason for Choosing Toyota:5

Major Threats Using Old StrategyforToyota as a Company5

Weakness6

PESTLE Analysis7

Political Analysis7

Socio-Cultural Analysis7

Economic Analysis7

Technological Analysis8

Legal Analysis8

New Strategy at Toyota8

Lean Production at Toyota9

Product and Services9

Capacity Management Recommendations for Toyota11

Changes Expected in the next 3-5 years13

1.Technology:13

2.Changes in Consumer attitude:13

3.Distribution Opportunity:13

4.Regulation:13

5.Economic:14

Conclusion14

The Strategic Change of Toyota Motor Corporation

Introduction

Toyota is one of the largest automakers with 7.4 million vehicles sold each year on five continents. With its commitment to its customers and its constant search for improvement, innovation of its Toyota occupies a leading position in the market Auto Asia, has the unique advantage of being the best Japanese brand sold in the United Kingdom and to be number one in Europe. The story of Toyota begins at the end of the 19th century with the invention of the first Sakichi Toyoda automatic loom in Japan, a machine that helps to revolutionize the textile industry countries. In January 1918, Sakichi Toyoda founded the Toyoda Spinning and Weaving Company and with the help his son, Kiichiro Toyoda, he managed to achieve in 1924 the dream of a lifetime building an automatic loom. Two years later he founded the factory looms Toyoda Automatic Loom Works. Kiichiro Toyoda inherits the innovative spirit of his father. In the years, twenty and he makes several trips to the Europe, during which he is interested close to the nascent auto industry. Putting the best advantage of the £ 100,000 from the sale by Sakichi Toyoda of industrial property rights of his automatic loom, Kiichiro Toyoda lays the foundation of the Toyota Motor Corporation (TMC), which he founded in 1937

(Barnes, 2001: 1076-1095).

Outside Japan, Toyota has begun to conquer foreign markets in the 1950s. The first Toyota Crown models arrive in the United Kingdom in 1957, and by 1965, the company will forged a reputation for quality, service and customer satisfaction, particularly through models car like the Toyota Corolla, which will enable it to compete with car manufacturers nationals. In 2004, annual sales of Toyota vehicles in the United Kingdom will exceed 2 million, including 1.4 million vehicles and nearly 1.36 million engines manufactured in the United Kingdom. The first European imports made in Denmark in 1963 and since that date, the company has grown steadily in the market for sophisticated, and complex motor Europe. In 2006, Toyota has shipped its 15 millionth vehicle in Europe and achieved sales figures record for the tenth consecutive year. Toyota has adopted a policy of locating its vehicle ...