Toyota is among the leading car manufacturers in the world because “since 2000”, Toyota industry has grown by a big margin. They enjoy global market support since they make more cars abroad than at home. Toyota has been able to market its cars in over 170 countries and has over 250,000 employees worldwide. Toyota’s main manufacturing vehicle is in Japan and also has 52 manufacturing companies across the globe. Toyota started in 1933 as a division of Toyoda Automatic Loom, and its work dedicated to vehicles under the guidance of the founder’s son, Kiichiro Toyoda. “Toyoda” means “fertile rice paddies” hence the name changed in 1937 as the “Toyota Motor Company” (Auayo, 1991).
What are the Toyota way marketing strategies?
The Toyota culture based on customer-focused and teamwork of all the people within the Toyota family. Toyota’s culture is remarkable because of the continuous improvement of its vehicle every year. It gave a customer a wide variety of the car to choose depending on the customer’s preference and desire. Market values of the vehicle also help Toyota to change the design of its car to suit all classes of customers. Toyota has developed a way of mitigating problems and formulates ways of solving it.
Its employees tackle problems, face day to day challenges, likes any other company but they use these challenges as a way of improving their performance. Toyota employs the teamwork spirit which helps employees the shared knowledge concerning employee skills. This culture has served Toyota, unshaken a long period, and it maintains a competitive edge over its competitor by establishing a sound processing, and procedures to maintain the changing time, and season. (Auayo, 1991).
Toyota maintains its competitive edge, and maintain its market leader position, Toyota employees continuously contributed to the wellbeing of the company by proposing effective changes to be made to its business strategy. According to Dr. W. Edwards:
Deming adopting appropriate principles of management, organizations can increase quality and simultaneously reduce costs (by reducing waste, rework, staff attrition and litigation while increasing customer loyalty). The key is to practice continual improvement and think of manufacturing as a system, not as bits and pieces.
Toyota later established itself as a force to reckon by developing in the armor of Toyota’s vaunted culture(Gabor, 1992). Toyota edged out its competitors by development unbelievable charges of discovery in recognizing customer wants, modeling products and services to meet the needs of the customer. Toyota accomplished this mission by conducting a study to understand the luxury (Barsky & Kilian, 2004).
What makes Toyota Company success in a crowded market environment?
Toyota always maintains and stays ahead of growing demand, with quality, cheap products. This encourages the Toyota team to develop people’s skills in its operation by training, equipping people with the know-how to be expert in an area where it competed with other companies. Toyota maintained its quality products by creating its Universal production maintenance center.
Through this support center, it brought experts in welding, assembly, and fitting. This is a total commitment to the quality of the products, and then growth follows. Toyota’s success based on its internal underlying forces. It maintained and sustained its broad-based and inexorable culture of advance and origination. Toyota had trouble when the progress of the business surpassed its ability to gauge the practical and skill that completed it successfully (Gabor, 1992).
The alteration in business trends for the firm will need novelty and enhancement on the highest of innovation. These include not only exactly how to get better products and procedure strategies, but how to instruct those aids with more swiftness and certainty (Barsky & Kilian, 2004). Toyota company employees hold respect for all customers and always improve on products to maintain quality products thought they as company police. After the Second World War, Japanese automobile manufacturing met a crisis of survival.
The Toyota Company was unable to adopt the American car built-up made model because of the small market required developed in small quantities. Secondly American charged high costs because of higher demand while Japan had price resistance. “The 1973 oil crisis started in October 1973, when the members of the Organization of Arab Petroleum Exporting Countries plus Egypt, Syria and Tunisia proclaimed an oil embargo”. In 1973, there was an oil crisis, and consumers in the American market began using small cars because of fuel consumption (Ikenberry, 1986).
Auayo, R. (1991). Dr. Deming: The American Who Taught the Japanese about Quality. New York: Simon & Schuster.
Barsky, R. B. & Kilian, L. (2004). Oil and the Macroeconomics since the 1970s. The Journal of Economic Perspectives, 18(4), 115-134.
Gabor, A. (1992). The Man Who Discovered Quality: How W. Edwards Deming Brought the Quality Revolution to America. Penguin Books.
Hammes, D. & Wills, D. (2005). Black Gold: The end of Bretton Woods and The Oil-Price shocks of the 1970s. Independent Review, 9(4), 501-511.
Ikenberry, G. J. (1986). The Irony of State Strength: Comparative Responses to The oil Shocks in the 1970s. International Organization, 40(1), 105-37.