What Is Toyota's Competitive Advantage

1. Basis of Toyota’s competitive advantage:

The time when Toyota evolved at that time there was an acute adverse scenario in the market of japan. The domestic market was very small and there were many players in the market. The country was also suffering from economic capital crisis.

• Toyota reduced the flaws of production by reducing the setup time by manufacturing the parts in batches. They reduced the time required and thus enhanced the manufacturing process. These innovations brought changes to the expenses of the company. They reduced the cost of inventory and improved the quality of production.

• The major thing that helped the company was that it continuously changed its process of production. And this helped them to improve their

• They had a careful choice and control over supplies and as result they had an advantage to less suffer from the risk of the suppliers and can also maintain the proper quality of production and can serve the buyers better and can be the better brand than the competitors.

• They mainly focused upon the low cost production and as a result of it they used to supply products in low price and gain the low cost leadership in the market.

• Toyota had flexibility in their production process and this was the major point of gaining advantage in the market. As they adapted to new technologies of production their efficiency increased and the supply of various innovative products also was available with them.

• Other companies could not imitate with Toyota as they used to adopt the new and upcoming technologies and enjoyed the advantage other companies system was not that as flexible as of Toyota so they lagged.

• Toyota was also able to gain competitive advantage by supplying new and better and innovative design of cars to the buyers.

• Toyota also had a good cooperation from the suppliers and the employees. This also help them to put up with the competition in the

better in the organisation and train the employees to make them handy with the new technology and make them comfortable with the new machines.

• As the competitive rivalry was high in the market but the competitors lagged in one part that they didn’t had as flexibility as Toyota had and this will let the organisation to sustain further.

• The y provided emphasis on being the cost leader in the market so if they focuses more and more upon that part this will let them be the cost leader in the market and this will let them sustain longer and help them enjoy the competitive advantage.

• The way they approached the customers were different. They produced the products which the customers demanded and as a result they served the customers better and became one of the major players. AS per the approach if they cling on to it then they will be enjoying the competitive advantage for future.

• The company’s initial drive of the company is high and if the company can keep it high then they will be enjoying the competitive advantages in the