Toyota Motor Corporation
- What is the product or service? Are product differentiated?
Toyota Motor Company manufactures and sells vehicles. The vehicles are differentiated into several models that include SUVs, pickups, luxury vehicles, compact cars, trucks, buses, and vans that are meant to suit the needs of different customers.
- What is the industry size in units or dollars?
The Toyota Motor Corporation sold 10 million units of vehicles globally in 2014. In 2015, a total of 73.9 million units of vehicles were sold by all vehicle manufacturers, with Toyota accounting for the highest sales.
- Who are the major competitors? Is the industry consolidated or fragmented?
Toyota faces significant competition from its motor companies like Nissan, Honda Motor Company, Hyundai Motors company/KIA Motors, and General Motors.
- What distinctive competencies does Toyota have?
The Toyota Motor company has to be innovative to beat its competitors. The company has dedicated itself to producing a broad range of vehicles that suit the needs of a diverse set of customers and classes, which gives it a competitive advantage. The company has also invested in the production of cheap and good quality vehicles that make them preferred by many people. Its dedication to the production of environmentally friendly vehicles has also increased its market share among customers that are environmentally conscious. Its use of lean manufacturing systems also helps the company minimize waste and improve efficiency, which helps it bring out new models faster than competitors. Its operating costs are lower than its competitors’ costs.
- What is Toyota’s Current business model? Clarify your answer
Toyotas business model is based on developing a broad range of vehicles that provide customers value for their money and are reliable. The model is reflected in the company’s effort to produce cars that are cheap but do not lose their durability and efficiently. For example, there are luxury brands and SUVs that fit the financial needs of different consumers.
- What is Toyota’s strategy towards market segmentation? If it segments its market, on what basis does it do so?
The company has differentiated its markets into seven different units based on geographical locations, which gives it a global presence. Toyota Motors has operations in North America, Asia, Africa, Latin