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Toyota Business Strategy Essay

1581 Words7 Pages

1. Introduction

A firm to provide the underpinning of a sustained competitive advantage must invest in human resources and deploy its scarce assets in the core areas that can most effectively to experience long-term sustained competitive advantage. There is one major player in automotive industry that even overtakes its domestic competitors and is today it is widely measured as the essence of success story which is the Toyota Motor Corporation. The central reason for Toyota's achievement in the global marketplace lies in the so called "Toyota way". The Toyota Way is about "Doing the right thing for the company, its employees, the customer and the society as a whole" along with technology and efficiency. This paper discussed on Toyota Motor …show more content…

Cost leadership entails minimizing cost of operations and selling prices. On the other hand, the broad differentiation generic strategy requires developing business and product uniqueness to ensure Toyota’s competitive advantage. The combination of these generic strategies supports Toyota’s global reach in all market segments. Toyota was the first company to introduce lean manufacturing and total quality management practices in manufacturing process. For some time, the company was the only practitioner of these practices and had the lowest manufacturing and production costs worldwide. As a result, the firm achieves maximum business efficiency. Although many manufacturers were able to replicate Toyota’s lean manufacturing system, the company is still one of the most profitable manufacturers in the world. The company maximizes sales volume via reaching and attracting more customers by offering product every market segment in order to enjoy cost leadership component which ensures profits despite relatively low selling …show more content…

Innovation leads to distinctive and attractive products for all market sectors. Thus, Toyota accomplishes its core strategy as Toyota is one of the most innovative auto companies and has a strong culture that is focused on constant innovation. The company is known for its innovation processes. The company was the first to introduce Kaizen, Kanban and Total quality Management systems widely in their organization (Ovidijus J., 2013). The company was the first to manufacture and sell hybrid cars as well. For example, introducing Toyota Prius to the market as a hybrid car strategy empowers the company to attract customers concerned about the green earth. Toyota was the first successful mass produce the hybrid car on the market when it released the Prius in 2003. Being the first to get their hybrid on the market allowed Toyota to gain a large portion of the market share in the area of hybrid cars as stated in official website of Toyota. This exception product supports Toyota’s broad differentiation generic strategy by using innovative products that are attractive on the basis of uniqueness and advanced features. This concentrated strategy assist Toyota’s expansion by fascinating customers to new

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