Toyota Motor Company Essay Example for Free

Toyota Motor Company Essay In the worldwide automotive industry, Toyota Motor Corporation is the leading player in terms of revenue, profit and net worth as of April this year (Associated Press).   The Aichi Prefecture, Japan-based automaker reported in a filing with the U.S. Securities and Exchange Commission consolidated earnings of 1.6 trillion yen or about $14.3 billion for the year ended Mar. 31, 2007. To have reached its current leadership position in the market, Toyota Motor follows a business strategy that focuses on safety, reliability, efficiency, and cost-effectiveness of its products.    The company was able to capitalize on its smaller but more fuel-efficient models to increasingly gain bigger shares in different markets worldwide. The companys key market areas are: China, Japan, North America, and Europe.   Toyota’s corporate goal is to hold on to its position as a market leader, while continuing its growth.   In order to achieve this, the automaker believes in the importance of advances in technology, production and marketing, quality control, and strengthening of its cost-efficiency model. Specifically, Toyotas strategies are focused on: a) offering of full product lineup and distinguish products through hybrid technology that includes: expansion of distribution reach for its Lexus model to reach the most number of countries, manufacturing global brands that would meet regional characteristics while  utilizing the same designs and core components. b) localization of global operations with targeted regional strategies: the company understands that having a local manufacturing, marketing, and sales offices will help it maximize that markets potential while saving on cost of shipping vehicles and parts.   The localization wil lalso protect it from currency fluctuations and help it respond better to local preferences and tastes. Toyotas biggest strength is its ability to provide markets with good alternatives to bigger and more expensive vehicles.   Its product lines are attractive and are designed to make them affordable for consumers to buy, while keeping maintenance costs minimal. I dont consider Toyota to have a weak point, but rather, I consider it to be facing challenges.   The carmakers biggest challenge, for me, is to stay competitive, not only with the American and European carmakers, but with other Asian car manufacturers that also offer quality cars at affordable costs. BIBLIOGRAPHY TOYOTA. Home Page. http://www.toyota.co.jp/en/index.html (7 November 2007) Toyota overtakes GM in global vehicle sales, The Associated Press, 24 April 2007. http://www.msnbc.msn.com/id/18286221/ (7 November 2007) Toyota Motor Corp. U.S. Securities and Exchange Commission.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   http://sec.gov/cgi-bin/browse-   Ã‚   edgar?action=getcompanyCIK=0001094517owner=includecount=40 (7 November 2007)