Dossier Toyota en anglais

Toyota: a model of globalization strategy?

Eliott Decronumbourg

Martin Piedelievre

Business in a Globalized World

[pic 1]

Date : 14/09/2016

Teacher : Bastien Nivet

Summary

Introduction

1. Toyota’s International Markets

A.Toyota’s European Market

B. Toyota’s US Market 

1. Toyota’s Strategy in International Markets

A. Research & Development

B. Design

C- Adaptability based on survey

1. Toyota and its export

1. Toyota and Globalization

1. What is globalization?

1. PEST

Conclusion

Introduction

Toyota Motor Corporation (TMC) is a multinational company with headquarters in Toyota City, Japan, which produces cars, trucks, buses and robots. Toyota is the largest car manufacturer in Asia.

Toyota is one of the three major Asian car manufacturers competing U.S. producers on the world market. The others are Nissan Motors and Honda Motors. Toyota, is also automotive products sold under the names Toyota, Scion and Lexus. Toyota owns a majority stake in Daihatsu and Hino, and 8.7% of Fuji Heavy Industries, manufacturer of Subaru cars.

In 2005, Toyota together with Daihatsu Motor Company produced 8.54 million vehicles, almost 500,000 less than General Motors in that year. In July 2006, Toyota exceeded sales of Ford cars, but the American manufacturer regained a month later. Toyota has a significant market share in the U.S., Europe and Africa and is the market leader in Australia.

Toyota has factories all over the world (annex 1), where it produces and assembles vehicles for local markets. The company has manufacturing or assembly plants in Japan, USA, Australia, Canada, Indonesia, Poland, South Africa, Turkey, United Kingdom, France, Brazil, most recently those in Pakistan, India, Argentina, Czech Republic, Mexico, Malaysia, Thailand, China and Venezuela.

The first Toyota vehicle built outside Japan was a Land Cruiser FJ-251 built in São Paulo, Brazil, in May of 1959.

Most of articles say that Toyota is a very successful international company always looking for improvement and innovation. What strategy Toyota has adopted to reach the success both on the Japanese market and international market?

Is Toyota a model of globalization strategy?

1. Toyota’s International Markets

1. Toyota’s European Market

Japanese investors have turned to Europe, a market they consider strategic not only for their products, but also, because for them it’s a real opportunity to become a leading global player.

Toyota Motors, the second global car manufacturer, was the one who initiated this trend. The auto manufactures have eight factories in the “old continent”, in UK, France, Poland, Turkey and the Czech Republic , with a total of 55,000 employees, including a distribution network and a research and a development center in Zavetem, Belgium. In any location it has operations; the company brings annual profits of million euros from contracts it has made. It brings an important chain in research and development related to design and safety standards.

In Europe in 2003, the Japanese company recorded a 4.4% market share under three brands it owned Toyota, Daihatsu and Hino.

In 2004, there were 17 production units of Japanese automotive facilities in the European Union, they produced 1.3 million vehicles and 14 research and development centers. It is estimated that these investments have created 200,000 new jobs.

On the European market, Toyota Motor Corporation has recorded increases in sales from year to year. Its success is due to adapting its supply to the needs and requirements of the Europeans, based on total quality strategy, innovation and continuous competitive spirit.

1. Toyota’s US Market 

Business activities, in the U.S., of Japanese automotive and components companies are highly profitable. If in 1980 the Asian brands cars were 100% imported, in 1993, 11 factories were located on American soil. It was a real success, Japanese brand market share increased from 15.3% in 1999 to 20.6% in 2004 and the trend is upward, considering that in 2006 their number of factories was 23.

As in Europe, the Japanese have invested heavily in the U.S. production sites. GM, Ford and DaimlerChrysler companies have been overcome by the Japanese, especially because of their high adaptability, but also of the lack of a culture of “domestic product” among American citizens.

In 2007, Toyota surpassed Ford in U.S. sales, coming in second place, after GM. But at the end of 2007, Toyota managed to become world leader in car sales surpassing the giant General Motors.

The Japanese manufacturer has managed to produce and sell 9,51 million units compared with 9,26 million units sold by GM. GM leader of the auto sector for 8 decades, had to settle, this time, with the second position after Toyota.

The reason that Toyota became the world leader was undeniably the interest that US showed in the fuel-efficient vehicles which is the main signature of the Japanese cars

In 2008, Toyota sold more vehicles than GM, 4.72 million vehicles for the Japanese group compared with 4.67 million vehicles from GM, the leader of the American auto industry over the past 76 years.

For 2009 Toyota aimed to sell 10.4 million vehicles, a new record in the automotive industry, (in 1978, GM’s record with 9.55 million vehicles sold throughout the whole world). However, the global economic crisis hit everyone, including Toyota.

The race between GM and Toyota is not only about the number of vehicles sold. In terms of profitability, GM is significantly behind those of Toyota, which also invests heavily in research and development of new models.

...