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Toyota to Thailand

Autor:   •  February 25, 2019  •  Case Study  •  1,795 Words (8 Pages)  •  19 Views

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Toyota to Thailand/TTT

First, this paper makes a scope analysis of Toyota Motor Corporation (‘Toyota’ or ‘the company’); the report includes the basic situation and core competencies and expectations of Toyota. Second, this paper consists of market analysis in Thailand; included the study of market situation, political and economic system in Thailand; also analyze the foreign investment situation and the culture in Thailand. Finally, the conclusion is figured out about the mode of entry what the strategy for Toyota is in Thailand.

Worldwide there is one leader of the automobile manufacturing enterprise is Toyota Motor Corporation (Toyota or ‘the company’). (Business Source Complete) Its main product is motor vehicles manufacturing in Japan, North America, Europe, and Asia. The main markets are in over 190 countries and regions. The company’s business includes automotive; financial services and all others related service of automotive. Its headquarter is in Toyota City Japan. The company achieved a revenue of about 265,107.3 million USD with 369,124 employees worldwide in 2017. (Toyota Motor Corporation SWOT Analysis, 2018)

There are three strong points of the company. (Toyota Motor Corporation SWOT Analysis, 2018) With its strong portfolio of brands, such famous brands “Toyota, Lexus, Corolla, Camry, Highlander, and other brands,” (Business Source Complete) the company occupies a strong market position worldwide. In FY2016, 46.8% market share belonged to the brands of Toyota and Lexus in Japan. The company has a 13.5% market share in North America, 13.4% in Asia (excluding China), 4.6% in Europe. The company also has a good market share in the South and Central America, Oceania, Africa, and the Middle East regions. Based on strong market positions, the company gained a competitive advantage and also could expand into international markets. The product lines expanded not only passenger vehicles also SUV, buses, trucks, spare parts, financing, and leasing. Toyota maintains the sustainable business result and creates company value with the strongest brand and most desirable premium brand in the world. The flexible and efficient’s “Toyota Production Model” bring Toyota to be an excellent manufacturer worldwide. The global production footprint ensures the low-cost manufacturing in its factories. The company spent over JPY 1,055,672 million on R&D in FY2016 to enhance overall competitiveness and to meet consumer preferences and to meet regional needs. (Toyota Motor Corporation SWOT Analysis, 2018)

Toyota has two weak points. First, in global today’s economy, most automotive companies purchase some raw materials, parts, components from dispersed suppliers. Toyota also has the same procurement strategy. Those single sourcing or limited sourcing will influence Toyota’s competitiveness; the difficulty is how to maintain the competitive price and effective supply from these suppliers. Another issue is that, in recent years, Toyota has some quality issues in North America, especially one case related pollution system, and it is dangerous in the company side. Those recall cases will influence sales and business growth. In the global economy, more countries focus on the environment protection; they tighten the policy about the emission of vehicles. Those recall cases are the obstacles of business maintain and growth for Toyota. The company has to invest more to improve the emission level; this will influence a company’s results of margin, .financial position, and business performance.

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