A Case Study on: Toyota Revs Up U.S. Sales

Summary

Since 1903, Chevrolet or Ford has been the best-selling car brand in the United States until 2002. Between two competitors, Ford is the first position in the market that year Toyota motor corporation of Japan sold cars nearest to the two competitors and Toyota will pass Ford in the very near future as because for the effectiveness of its long-term planning, modest goal and Toyota developed Strategy that modest growth in Japan, Europe and North America that was biggest opportunities in Southeast Asia but unfortunately economics level of Southeast Asia has slowed.

The Japanese market is becoming more competitive for Toyota and the firm is losing sales to Honda & Nissan. For recovering this situation, Toyota’s manger intend to exploit opportunity fully and Toyota sales more vehicles in the states than in Japan. Than the firm uses corporate level strategy to focus on U.S market this strategy leads the firm into top place in the America market.

“WE Must Americanize.” - Fujio Cho Toyota Motor Corporation

Q.1. List the threats and opportunities that Toyota is facing in its environment. Then list the strength and weakness of Toyota? Answer: Basis on the Toyota’s business environment, Toyota facing some several threats and opportunities. These are point out in the below: Threats: 1.The economies level of Southeast Asian countries has slowed. 2. The Japanese market is getting more competitive for Toyota. 3. Toyota is losing sales to Honda and Nissan. 4. Initially Ford and Chevrolet has been best-selling car brand in the U.S market.

Opportunities: 1. Exploiting of Toyota’s intend in the U.S. market 2. Approaching to local managers in order to Americanize. 3. Import taxes and current risk are reduced by manufacturing 2/3 of the cars U.S. and keeping revenues and expenses in U.S. dollars. 4. Utilizing American designers to compete effectively in the U.S. market

Strengths: 1. The effectiveness of Toyota’s in long-term planning. 2. Toyota has innovative new product development. 3. The American competitors have been slow to respond to Toyota's threat. 4. As a company, Toyota is beginning to set better long-term goals. 5. Toyota has accomplished ambitious goals. 6. Toyota do not like new direction and prefer that the firm stick “Toyota Way”

Weaknesses: 1. Initially, Toyota had a very conservative approach to goals. 2. Failure to recognize market opportunity to develop a full-size pickup truck. 3. Slowing economies level in Southeast Asian countries.. 4. Traditionalists inside Toyota do not like where the company is headed and want to stick to old ways. 5. Lack of understanding of American preferences at the highest levels of the company.

Q.2.Consider Toyota’s U.S auto business. What business level strategy is the firm using? What factors did you rely on in reaching your decision? Answer: Toyota’s CEO realize that they must Americanize for this purpose the firm is using more American designers for care to be sold in the U.S market. This allows the firm to complete effectively with U.S auto market and to stay in touch with demands of American consumers.

To achieve U.S market, the firm is using Geographical corporate level strategy. I relied on in reaching my decision, several distinct factors. These are given below: 1.Toyota’s business environment 2.Intend to exploit opportunity of Toyota’s manager 3.Toyota’s corporate level strategy

Q.3.In your opinion, is Toyota’s corporate level strategy (to focus on the U.S Market) likely to be effective over the next ten years? Why or why not? Answer: yes, I think Toyota’s corporate level strategy is definitely to be effective over the next ten years as because it is a company which is known

for the effectiveness of its long term planning. Its corporate level strategy gets tremendous success in U.S Market. They are using American designers which will help to compete in the future due to get knowledge of updated consumer demand. It also using overall cost leadership strategy in American market. By considering the above case I think Toyota’s corporate level strategy would be effective over the next ten years.