Toyota Revs Up U.S. Sales

A Case Study

Accomplished by:

Imdadul Islam ID No.: 40713051

Mahfuzur Rahman ID No.: 40713041

Chandan Kumar Bala ID No.: 40713043

Md. Ehsanul Haque ID No.: 40713052

Sanjit Ghosh ID No.: 40713036

Course Title: Principles of Management

Course No.: MKT-504

Course Teacher: Mr. Razib AlamLecturer, Dept. of MarketingUniversity of Dhaka

Summary

Since 1903 Chevrolet and Ford were dominating US automobile market. But on 2002 a new giant emerged there. And it is…

The Toyota Motor Company of Japan

Summary…

Toyota-one of the most popular automobile manufacturer of the world was established on 1937. During 1990s, rather than USA they targeted some others part of the world as their most prospective market.

But they had to abandon their plan and had to emphasize on US market under different circumstances. Ultimately they succeed tremendously in US auto market in the following decade.

Summary…

“We must Americanize.” – Fujio Cho, CEO, Toyota.

Question is how?

After achieving the extraordinary success, Toyota is planning to Grab the top place of American automobile market. Their current Performance clearly indicating that it is quiet possible.

Toyota Chairman Hiroshi Okuda joked that the company should Move it’s headquarters to the United States.

Problem Definition

The Threats and Opportunities of Toyota. The Strengths and Weaknesses of Toyota.

The business level strategy Toyota in US market.

Effectiveness of Toyota’s Corporate Level Strategy over the next ten years.

Theoretical Framework

Mission’sSWOT Analysis

Internal AnalysisStrengths and

Weaknesses

External AnalysisOpportunitiesAnd Threats

SWOT analysis helps to formulate strategies to:Exploit opportunities and strengths.Neutralize threats.Avoid weakness.

Business Level StrategyPorter’s Generic Strategies

Differentiation. e.g.: AarongOverall Cost Leadership. e.g.: Maruti AutomobilesFocus. e.g.: Nestle

The Miles and Snow Typology

Prospector. e.g.: Amazon.comDefender. e.g.: Holcim CementAnalyzer. e.g.: Yahoo!Reactor. e.g.: Biman

Corporate Level Strategy

Single Product Strategy.e.g.: Econo Ball Pen

Related Diversification.e.g.: Unilever

Unrelated Diversification.e.g.: Square

Solutions and Findings

Threats:Competitive Rivalry in different markets.

e.g.: Chevrolet and Ford in USA Honda and Nissan in Japan

Economic Recession in South-East Asia and Europe.

Opportunities:Slow Response from American competitors.Favorable attitude from the Government.Acceptance as a “Domestic Brand” among customers.

Solutions and Findings…

Weaknesses:Mentality of traditionalists

inside Toyota.Lack of understanding of

American customer.

Strengths:Long-term effective planning.Cost Leadership.Widespread production facility.Effective, efficient and advanced Technology.

Toyota’s Business Level Strategy

According to Porters Generic Strategies: Focus

Toyota using differentiation focus strategy introducingDifferent types of products to different market segment.

Toyota using overall cost leadership focus strategy inAmerican market.

According to Miles and Snow Typology: Analyzer

Maintaining existing US market share, Toyota is nowplanning to catch new customers such as Rural Customer.

Toyota’s Corporate Level Strategy

Toyota following Related Diversification Strategy

Focusing US market Toyota developing new products likeHybrid Car, Emission-free car which runs on hydrogen fuel cell etc. with their existing facilities.

This strategy is supposed to be successful because the Americans like style, quality and efficiency. US authority also adopting strict policy about emission day by day.

Recommendations and ConclusionsRecommendations and Conclusions

Provide installment facility to individual customers.Provide special facilities to Corporate and

Government clients.Forming business alliance with reputed companies

and introduce Fusion Marketing.Both Backward and Forward Vertical Integration

can be considered as a tool to increase market share.

Thank You