Essay about Toyota Motor Corporation
Kindly ADD to CART and Purchase an Editable Word Document at $5.99 ONLY
Toyota Motor Corporation
Toyota motor company is a motor vehicle manufacturing company that is based in Toyota City, in Japan. This company has approximately 600 subsidiary companies that are specialized in procuring automobiles, commercial and industrial vehicles and selling various automobile parts. In 2008, Toyota Motor Corporation was ranked for the first time as the largest automobile manufacturer in the whole world. However, this company was founded by Toyoda Sakichi, and started its operations in 1933, as a division of the Toyota Automatic Loom Works limited (John 203-211). Moreover, in 1936, this corporation managed to produce the Model AA sedan, as its first production car. In 1937, the name of this company was changed from Toyoda Automatic Loom Work limited to Toyota Motor Company Limited, by Toyoda Kiichiro, who was a son to Sakichi, the founder. In addition, the company continued to expand and by 1945, it has established several related companies, such as the Toyoda Machine Works Limited and Toyota Auto, Body Limited. Nevertheless, this company was forced to temporarily suspend its automotive operations due to the deteriorated economy that resulted after the Second World War.
However, the company regained its operations during the 1950s, and as a way of gaining competitive potential, the company started a careful study of the various operation that were being conducted by the American automobile manufacturers such as Ford Motor Company. This was due to the economic and technical superiority of the United States that the Japanese manufacturers perceived at that time. However, after this careful study of the American automobile manufacturing technology, Toyota Motor manufacturers managed to implement this manufacturing technology in its facilities, and this helped the company to immediately enhance its efficiency. In 1957, the company managed to establish Toyota Motor Sales in the United States, and soon released Toyopet sedan, as the initial model car to be marketed in United States (Encyclopedia 2013). However, this model was poorly received by the Americans due to its lack of horsepower and high price. This made the company to redesign and re-release this model, as Toyota Corona, which was highly received by the Americans, making the company`s first model success in the united states.
Moreover, this company continued to experience rapid expansion at a high rate, to the extent of exporting large quantities of automobiles to the foreign markets. Moreover, during the late 1960s, Toyota Motor company acquired various companies such as Hino Motors Limited (that specializes in manufacturing large trucks and buses), Nippondenso and Daihatsu Company Limited (Encyclopedia 2013). As time went on, this company continued to expand to the extent of becoming the largest Japan manufacturing automobile company, as well as good reputation in the American markets, due to its reliable vehicles, fuel-efficient, and low-cost.
Moreover, this company acquired its present name in 1982, when it merged with Toyota Motor Sales Company limited, and later partnered with General Motors Corporation. In the 21st century, the company has experienced great growth especially due to great innovations such as Lexus and Prius car models (Encyclopedia 2013). At the onset of the 21st century, the company was listed in both New Yolk and London stock exchange. However, despite the great expansion of this company, the global financial crisis that occur in 2008, and the global safety recall of approximately eight million vehicles in 2010, greatly affected the production and the sale of these company.
Currently, Toyota Company has various assembly plants and distributors in almost 140 countries. These plants are involved in a wide range of operations, such as automotive, financial, and others. Automotive operations include manufacturing, designing and distributing compact cars, sedans, trucks, sport-utility vehicles, minivans, vehicle parts, and accessories. The financial operations include leasing of various equipments and financing of vehicles. Other operations include construction, residential designing and offering information and telecommunication services (John 221-223).
Though Toyota Motor Company is ranked as the world`s best automotive manufacturing company, it encounters stiff competition from major competitors’ such as General Motors, Ford Motor company, Volkswagen, Isuzu motor limited, Mitsubishi Motors Corporation, among others (Thembani 4). Most of these competitors are involved in similar activities that Toyota Motor Corporation is involved in. For example, Ford Motor company, which is located in Dearborn, manufactures, designs, and distributes automobiles across all various countries in the world. In addition, Ford Motor company has approximately 62 plants in the entire world, and its main automotive brands are Lincoln and Ford (Banham, Russ, & Paul 21-26). The company also offers financial services through Ford motor credit company. Similarly, General Motors Company (GM), which is located in Detroit, Michigan, is a multinational automotive corporation that is involved in designing, manufacturing, marketing, and distributing motor vehicles, various parts of vehicles, and selling financial services. In addition, GM operates in almost 37 countries and has various automotive brands such as Holden, ALpheon, Cadillac, Chevrolet, Baojun, Opel, Vauxhall, Wuling among others (James 56).
However, despite the presence of these competitors, Toyota has managed to dominate in the global market share. For example, the corporation has a global market share of 10.2 percent, closely followed by Volkswagen (9.6 percent), General Motors (6.9 percent), Ford (5.6 percent), while the others has a total market share of 67.7 percent. However, Toyota Motor Corporation has varied market positions in different locations in the world. For example, in 2012, its market share in Japan was approximately 45.5 percent, 13.4 percent in Asia, 12.2 percent in North America, and 4.3 percent in Europe (Thembani 4-5). Nevertheless, this strong market position of this company enables it to record higher sales in both domestic and international markets, compared to its competitors.
In addition, Toyota Motor Corporation manages to compete adequately with its competitors due to its key success factors in the industry. First, the corporation is flexible in determining its expenditures including controlling various cost that are related to its employees, such as pension and health costs. In addition, the corporation is determined in utilizing efficient work practices, such as maintaining good industrial relations, which ensures a motivated workforce is maintained. This enhances teamwork and minimizes industrial disputes. Consecutively, the corporation is determined in adopting and implementing the latest and efficient technologies, which facilitates in the production of high-quality products, and minimization of its cost of production. For example, the Corporation has adopted various innovative technologies such as Just In Time (JIT), Six Sigma, Kaizen, Toyota Production system, among others (Thembani 5). Just in time technology enables Toyota Corporation to detect and correct various defects of the products early in advance, before the defective product is distributed to the customers. This ensures that most of the corporate automotive brands are of high quality, low in price, fuel efficient among others.
However, despite the existence of numerous competitors in the automotive industry, there are various changes that occur in the market. In most cases, various automotive companies may merge and work as a single entity, or collaborate with each other in order to produce a specific brand of a vehicle. For example, in 1984, Toyota Motor Corporation partnered with General Motors Corporation in order to create a new United Motor manufacturing plant, based in California (Encyclopedia 2013). In this scenario, the two companies benefit from the sales that are made from the established motor vehicle plants. In addition, during the 1950s, the Toyota motor corporation collaborated with Ford Motor Company in order to adopt production technologies that were being implemented by Ford Company. Through this collaboration, Toyota manufacturers managed to improve their production processes and enhanced its efficiency.
Moreover, in the automotive industry, there are no barriers of entry or exit. Various are free to enter or exit the automotive industry at will. However, their survival is determined by the quality of their products, price, and innovative competencies among others. In addition, various brands are growing while others are fading away. For example, when Toyota Company launched its first brand (Toyopet Sedan) in the United States, it was negatively received by American customers due to its high marked price, and lack of desirable features such as horsepower. In contrast, the latest world`s luxury brand, Lexus RX 400h, which was launched by Toyota in 2005, have continuously increased in demand all over the world (Encyclopedia 2013).
Toyota Motor Corporation uses various forms and media in advertising its products. For example, the company used television while advertising its corolla brand. This advert starts in a vacant building where individuals who had dressed like cats were fighting each other using martial arts techniques. One cat grabs a bag full of fish and runs into the corolla car, make an immediate-turn reverse, and vanish as the other cats try to chase it. The advert ends with a slogan stating, “I love what you do for me, Toyota!” (Lamb et al. 504).This advert targets customers who wish to know much about the Corolla brand in terms of its speed. It appeals to them that they would always acquire convenience when they purchase corolla.
Consecutively, Toyota uses printing Media such as newspapers in increasing consumer awareness on various brands that are available in their stores. In these adverts, the company includes the features of various brands, their prices, warrant, and mileage among others. These adverts target local customers who might be willing to buy vehicles, but they don’t know the brands that exist in the market, their prices, and where to buy them. The company uses images of various brands that they offer in order to appeal potential customers. These adverts contain slogans such as, “you ask for it, you got it” (Lamb et al. 508)
Consecutively, the company uses online platforms while advertising its products. For example, the company has its website, displaying various brands it offers. These adverts targets domestic and international customers who try to search for the various brands that Toyota offers (Lamb et al. 512).
Most of these adverts are effective in conveying the intended message to the potential customers. For example, the use of television in advertising the corolla brands increases awareness of the existence of Corolla brands in the market, and this stimulates potential customers both local and international, to purchase them. In addition, television advertisements offer opportunities for the company to demonstrate features of its brands to the customers. The company must have considered that some customers believe when they witness the actual thing as it happens. The immediate U-turn reverse that the Corolla car made during the advert would make most potential customers believe or develop a positive attitude to the advertised brand. Moreover, television adverts are accompanied by entertainments, which attract the attention of the audience, and this makes the product being advertised to stick in their memory (Foster 42). Consecutively, adverts through the print media such as newspaper aims at increasing awareness of various Toyota brands to most of the working individuals, who in most cases spend less time watching other advertising platforms such as television. In addition, online advertisements target the young generation, and the digitalized populations who are capable of accessing various online sites.
Though these advertisements are well structured and target specific customers, there are various measures that should be incorporated, in order to make them more effective. First, websites should be customized such that they keep changing after some specified durations, in order to make potential customers see a variety of Toyota brands. Secondly, it is necessary for any advert that is made in one media, be also availed in others in order to ensure a wide range of customers manages to encounter them. Though each advert has its target customers, making one advert to be in all the advertising platforms may attract customers who had not initially been targeted ((Lamb et al. 517-519). In addition, television adverts should be made more frequently, and at a time when most audience are anticipated to be watching.
Banham, Russ, and Paul Newman. The Ford Century: Ford Motor Company and the Innovations That Shaped the World. New York: Workman, 2002. Print.
Encyclopedia Britannica: Toyota Motor Corporation, updated on 6th September 2013. Retrieved from, http://www.britannica.com/EBchecked/topic/601332/Toyota-Motor-Corporation
Foster Robert : Materializing the Nation: Commodities, Consumption, and Media in Papua New Guinea. Bloomington, Ind. [u.a.: Indiana University Press, 2002. Print.
James Kidney: A Directory of General Motors Purchasing Departments : a Listing of Principal Gm Products. Detroit, Mich: The Company, 2001. Print
John Saee: Contemporary Corporate Strategy: Global Perspectives. New Yolk: Taylor and Francis Library, 2007 print.
Lamb, Charles W, Joseph F. Hair, and Carl D. McDaniel. Marketing. Mason, Ohio: South-Western Cengage Learning, 2009. Print.
Thembani Nkomo: Analysis of Toyota Motor Corporation. Published on 12th March 2013. Retrieved from, http://scholar.harvard.edu/files/tnkomo/files/analysis_of_toyota.pdf