Toyotas strategy in Europe Essay Example

in America and Brazil. In April of 1963, Toyota produced its inaugural car outside of Japan in Port Melbourne Australia. Today, Toyota has a global presence.

TME's International Operations Strategy

Toyota Motor Europe (TME) aims to improve customer care, expand into light commercial and passenger vehicles, upgrade service centres and incorporate environmentally-friendly technologies in its high-quality vehicles to increase market share globally and across Europe. The company also strives to maintain its reputation as the world's top car manufacturer.

Current Challenges Faced by TME

Despite challenges such as environmental protection, adoption of information technology and improvement of safety measures, TME has achieved significant sales figures of 800,000 Toyota and Lexus cars in Europe with a target of reaching 1 million sales.

Analysis of Toyota Group's Strengths, Weaknesses, Opportunities and Threats

In 2008, the total number of vehicles sold by Toyota Group increased by 5% to reach a record high of 2 million units.

• Strengths:
• Having established itself as an industry leader in 1934, Toyota Group has emerged as one of the leading automotive manufacturers worldwide with over 30% market share in Europe and America.
• The global recognition enjoyed by the company has helped it develop a strong presence and reputation within the automobile market.

Since 1939, Toyota has aimed to be the leading global auto industry player in Europe. With inventive and tactical marketing methods, the group has obtained nearly 20% of the European auto market. Additionally, Toyota's formidable brand image has granted it a favorable

stance in the market.

By establishing a positive reputation for its brands in the European market, Toyota has laid a strong foundation for launching new ones. The automobile industry is projected to rapidly expand, which means the target audience will also grow.

Problem: Toyota may face challenges meeting the demands of its diverse customer base, which is anticipated to grow quickly. To accommodate this growth, the company may need to improve its manufacturing capacity. Despite this, Toyota has already established a supply chain that caters to global market needs, even in remote regions with improved infrastructure.

While relying on the triumph of rival automakers in Europe may harm Toyota's hybrid brands since they cater to distinct markets, there are chances for the company to promote its products in an expanding market. This grants Toyota a distinctive occasion given that launching new items in a stagnant market with established competition can be difficult. Moreover, Toyota can introduce its products innovatively.

Recently, the corporation has been sponsoring motor rallies to promote its brands and take advantage of the increasing significance of classic motor shows. This approach offers a distinct way to introduce the brand to the market. Additionally, the organization can support other events such as sports or participate in activities that promote corporate social responsibility, like girl child education, to enhance engagement of the target market with its products. Ultimately, a diverse set of marketing strategies will contribute to the group's overall growth in the market.

Opportunities: The European advertising market presents multiple expansion opportunities due to its growth. Various strategies can be implemented by companies to take advantage of these opportunities.

Threats: Increased competition is a major challenge for companies in

the European advertising market, as new and existing brands may enter the market. Moreover, successful models may attract other companies to introduce similar products or services in the market.

Concerns: Siliconfareast.com (2008) reports that alterations in tax policies and government laws could have a negative impact on the market.

Analysis of the Company

Advantages: Toyota has been a dominant player in the automotive industry for more than seven decades, thanks to its strong market portfolio.

Currently, Toyota holds a prominent position in the European auto market with a market share exceeding 20%. Its extensive presence across the continent enables it to effectively transfer successful products between emerging markets. Moreover, the company has the ability to manufacture customized vehicles that cater to individual customer needs.

As per a survey conducted in 2006, Toyota has secured the third position among the top workplaces. The corporation's robust human resource policies have contributed to this progress, which they have been enhancing for three decades. The group has made substantial investments in technology and currently employs more than 50,000 people throughout Europe. These factors have significantly contributed to their overall success as stated by David in 2004.

By innovating and introducing new brands, the corporation has lowered production costs and bolstered its market position. Investment in advanced technology has facilitated growth. A strong centralized management structure has established standard operating procedures across all departments. Additionally, the Toyota group has implemented effective corporate management practices that ensure timely disclosure of performance information.

Effective financial management plays a crucial role in the overall success of Toyota group. The company's strong market performance has not only attracted more investors but also helped them take the lead. Toyota is renowned

for its high dividends compared to other competitors. The company's shares being introduced in the stock market has led to a significant increase in share prices, thus contributing to improved profits for the entire company.

Vincent (2004)(ii) reports that while the Toyota group dominates in Africa and other emerging markets, it is experiencing a decline in established markets due to weaknesses in operational standardization across departments. Nevertheless, the company's European market share remains strong enough for it to maintain leadership there. However, high prices of new models compared to GM's Daewoo, Lexus, and Nissan Xtrail have led to reduced sales as customers opt for more affordable options. Despite these challenges, Toyota's success can be attributed to its effective internal and external structures including a strong leadership team.

The Toyota group has experienced enhanced productivity and improved product quality by utilizing technology. They have implemented policies that promote positive relationships between workers and leaders resulting in motivated employees and efficient operations. The integration of IT has also facilitated communication among employees, establishing a strong relationship between the company and its consumers. However, despite their success, the company faces competition in the market with potential new companies entering to pose an even greater challenge.

Customers' bargaining power may increase with the availability of diverse products, while pricing could be challenged by a rise in substitute products. If suppliers increase prices due to high demand for raw materials, companies may experience decreased revenues and increased production costs. These factors collectively contribute to a competitive environment among rival firms in the market.

According to the SWOT analysis, Toyota is facing difficulties in the European market with its mini-cars due to tough competition

from similar companies. To address this issue, Toyota Group needs to modify their marketing strategy and improve weaker areas in order to enhance their market position. Despite encountering opportunities and threats, Toyota has an advantage over competitors because their strengths outweigh weaknesses. Selling products in a highly competitive marketplace presents both challenges and opportunities for Toyota to advance further. By comparing strengths and weaknesses with potential threats and opportunities, Toyota is well-equipped to overcome any possible obstacles as they have already surpassed rivals while remaining fully aware of their actions and reducing potential threats.

Mission and vision

Toyota, a renowned auto company worldwide with a diverse range of products, aims to have a global presence by establishing outlets in every country. The company's headquarters is in Tokyo, Japan.

Competitive strategy

Toyota faces stiff competition in the auto industry, but despite this, it is a market leader in the industry.

Toyota faces fierce competition from established rivals, which has led to intense market rivalry. However, Toyota has devised a plan to manufacture top-notch vehicles at a lower cost in order to conquer this challenge. This pricing approach has proven successful in making their products the preferred option for consumers. The significance of human resources in business operations cannot be overstated since skilled and motivated employees can offer a significant competitive edge that competitors might struggle to replicate.

Toyota is known for its exceptional human resource management, making it a top employer. Nevertheless, other companies may need to invest in skilled and focused personnel to prevent losing market dominance.

Recommendations and Implementation

To maintain market leadership, the company can prioritize developing strategies that guarantee consumer

satisfaction. This involves delivering products that meet customer expectations while remaining user-friendly, affordable, and easy to maintain.

By utilizing psychographic and demographic approaches, the Toyota group can increase its market share in the auto manufacturing industry significantly. If executed effectively, these methods have the potential to fuel substantial growth. Toyota enjoys a strong reputation among consumers who perceive its products as both high quality and affordable. Customer satisfaction strategies that enhance sales and profitability are key to outperforming competitors in the marketplace.

Toyota is currently up against tough competition from market rivals such as GM and Nissan, who boast established status and lower pricing for their vehicles (Toyota, 2000). In order to maintain consistency and avoid disruptions caused by changes in leadership with different skills, experiences, and goals, it is suggested that bureaucracy structures could prove helpful. According to Max Weber's (1995) "Organization management strategies", standardizing rules themselves can aid in this effort so that the entire company strategy is not derailed. A bureaucracy model also offers advantages such as enabling faster specialization of skills and reducing subjective judgments by managers through the establishment of proper rules and regulations to follow, thereby preventing individual rule creation which can result in company drift.

This approach has given Toyota an advantage in both production and leadership within the automotive sector. The growing emphasis on developing personnel throughout the organization can be traced to several factors. In companies where workers are taking on wider areas of responsibility, particularly in strategy-focused settings, managers face an entirely new context. They must manage larger teams and their prior skills and competencies may no longer be effective.

The Toyota group needs to make essential alterations

and develop more effective tactics to prevent drifting. Once implemented, the company appears to perform superiorly in the market compared to its key competitors. If the company persists in this direction, it is likely to outshine its competitors and lead the market soon.
Both internal and external factors have contributed to the challenges faced by the Toyota group. Enhancing management and allowing departmental leaders autonomy over their respective departments could evade internal challenges. Such measures would improve the group’s management quality and place it in a position of eminence.

(Giuly, 2000) Reference:

1. Annetter, G. (2000) Benchmarking for strategic performance improvement. McGraw-Hill
2. David, L. (2004) Strategic management in a new market, Harvard Business Review
3. Giuly, B. (2000) Essentials of strategic management. Oxford University
4. Siliconfareast.

Com (2008) provides information on Total Quality Management, retrieved on August 18th 2008.

Toyota (2000) discusses brand development and identifying brand values in an article published in The New York Times in June 2000.