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Toyota Case Analysis

Autor:   •  March 30, 2011  •  Case Study  •  1,727 Words (7 Pages)  •  3,047 Views

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With the combination of speed and flexibility, Toyota manufacturing plants are leading within the departments of productivity and market responsiveness. In North America alone, Toyota is gaining on the Big Three's vehicle models, with $1.94 million is sales and has 11.2 percent of the market share. While in Japan, Toyota sales amount to $1.68 million, yet, it has maintained its 40 percent plus market share for 5 years now.

Toyota combines the size, financial clout, and manufacturing excellences needed to dominate the global automobile industry and no other car company is as strong as Toyota is in so many areas. Toyota has continuously moved forward, improved, researched problems and figure solutions; the bar has been raised for the entire industry. Toyota stresses constant improvements, or Kaizen, in everything it does. Tis vehicles are a testimony of the company's pledge.

Currently, Toyota is working on a plan to create an integrated, flexible, global manufacturing system. This system will be used to customize cars for local markets and capable of production shifting to quickly satisfy any surges in demand from markets worldwide. If all goes as planned, Cho, Toyotas President, will have created an automotive machine that will have the Americans and Germans shaking. This cost-cutting and process redesign will eliminate billions of dollars in expenses. Thus, keeping margins strong and free-up cash for the development of new models, investments into global manufacturing, and to invade potential markets, such as Europe and China.

Unfortunately, Toyota models are not as successful in the market as other rivalry models are. For example Toyota depends on U.S. business for 70 percent of its earnings, while its luxury Lexus sedans are losing to BMW, and its aged 46-target market is moving towards Buick. Toyota's rival, GM, is in the works. GM chairman, Richard Wagoner claimed that, "Toyota is a good competitor but they are not unbeatable". Toyota is hoping sits Hybrid chain will be a revolution, yet their competitors doubt that. However, if they Yen remains at 110 to the dollar over the next 12 months, Toyota's pre-tax profits will shrink by $900 million.

Toyota is adamant and confident about its growth in the United States. Building an $800 million plant in San Antonio, TX will allow Toyota to more than double its Tundra (full size truck) output. Toyota is aiming for a 15 percent global share in the market. With its plans to expand and grow, Toyota is confident of its advantages and is not afraid of the competitor. The company has realized that consumers markets have different tastes and needs; what people drive in Japan does not necessitate what people drive in the Europe or the States. This is why Toyota has formed design teams from all over to work on projects, giving its buyers a "level of style".

The man behind Toyota's drive is Cho. A graduate

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