Toyota Analysis Comprehensive Case Analysis

An Analysis of Toyota Motor Company

JANE A TUCKER

490 Business POLICY, PROFESSOR RICHMOND

Toyota's Objectives and Strategies

Toyota is an industry giant and has been known as a global innovator in the manufacturing industry. The company has upheld a customer concentrated orientation that has allowed them to be responsive to their target markets. The company is constantly monitoring consumer needs and wants and develops their product mix respectively. One development in the external analysis that was identified within the industry is that Toyota will have to adapt to be more responsive to consumer needs in smaller and more segmented geographical locations. For example, car buyers in developing countries may have vastly different preferences in vehicles then those in the U.S. market. As a consequence, Toyota needs to develop a more regional strategy that is tailored to individual markets.

The external environment that Toyota operates in has also become more volatile. The amount of competition has increased while the global economy experienced a significant downturn that has reduced margins across the board. It is inevitable that Toyota will lose some market share in the U.S. market. However, the company can work to make significant gains in India and China. Much of the company's current product mix isn't tuned well to these markets the products are out of reach for most consumers in the developing world.

However, Toyota has been exposed to a lot of negative publicity with headlines referring to relatively recent quality problems that the company was having with things such as brakes failing and accelerators becoming stuck. The large number of defects has resulted in a signification number of vehicles having to be recalled and repaired. A specific example of one such quality issues was a defective throttle control system that in some cases caused the cars to idle, turn off during operation, or even accelerate uncontrollably (Toyota, 2012).
Many of these quality issues seem to be one consequence of Toyota's incredible growth rate (Cole, 2010). The company's fast growth rate, coupled with the exponentially increasing complexity of engineering in automobiles, makes it challenging for a global organization to control quality by the same methods that the company was previously renowned for. Therefore, even though Toyota has historically been a world leader in quality controls, such large organizations can easily become subject to quality issues during such rapid expansions.

Toyota's Response to Opportunities and Threats

Toyota has developed a large number of consumer niche segments. One of the most successful examples of this can be provided by the Prius and Toyota's revolutionary gains fuel efficiency. The Toyota Prius was dominant market entrant that focused on meeting the…