Toyota's Strategic Management Analysis

This assignment requires an in-depth analysis of Toyota's strategic management. Students must examine Toyota's core business model, dissect their intricate product development process, evaluate their marketing strategies, and conduct a comprehensive SWOT analysis to assess their strengths, weaknesses, opportunities, and threats. The goal is to demonstrate a thorough understanding of how Toyota utilizes various strategic tools for success in the competitive automotive industry.

Running head: Global marketing management
Global marketing management

Global marketing management
Table of Contents
Introduction.................................................................................................................................................3
Industry analysis of Toyota Motor Corporation...........................................................................................3
Marketing mix.............................................................................................................................................4
Brand management......................................................................................................................................4
STP (Segmentation, targeting, and positioning)..........................................................................................4
PESTLE analysis.........................................................................................................................................5
SWOT analysis of Toyota...........................................................................................................................6
Porter five forces analysis............................................................................................................................7
Competitor analysis.....................................................................................................................................8
BCG matrix of Toyota.................................................................................................................................8
Cultural dimension......................................................................................................................................9
Ethical dimension......................................................................................................................................10
Case study.................................................................................................................................................10
Discussion..................................................................................................................................................11
Conclusion.................................................................................................................................................12
References.................................................................................................................................................13
Appendices................................................................................................................................................16
2

Global marketing management
Introduction
The report outlines trading operations and activities of the Toyota. Further, it explains the
mission and vision of the firm. It tells that how the company is using marketing mix strategy and
brand management strategies within the organization. Apart from this, it also explains the Pestle
analysis, SWOT analysis, and porter five forces model to analyze and measure the strengths and
weaknesses of the competitors across the world. It describes that how the company is using BCG
matrix within the organization. It outlines that how the company is addressing the ethical issues
within the organization.
Toyota motor is a Japanese automotive manufacturer company. The company was
founded in 1937 with its headquartered is located in Aichi, Japan. There are approx 364,445
employees employed in the company. It is the fifth biggest company in the world measured by
the revenue. It is one of the biggest automotive manufacturer companies around the world. In
today’s era, the company is producing more than 10 million vehicles in the world. The firm is
listed on the Japan stock exchange. It is the world market player in sales of hybrid electric
vehicles. Toyota is dealing with various automobiles, engines, commercial vehicles and luxury
vehicles around the world. In today’s world, the company is increasing its revenue and profit and
it is expanding its business activities globally. The mission of the Toyota is to attract and retain
customers by providing a high quality of products and services in the world. The vision of the
company is to become a successful leader in the automotive car manufacturing industry. The
primary market of the company includes businessmen, urban families and young executives
(Fan, Geddes & Flory, 2013).
Industry analysis of Toyota Motor Corporation
Toyota is the automotive car manufacturing corporation which operates its business
activities globally. It is trying to beat the competitors across the world. The competitors of the
Toyota include Honda motors, Nissan motors, Ford motor company, Tata Motors, and
Volkswagen. These are the main competitors of the company. The company has obtained approx
4.26 percent share in the U.S (McLean-Cobban, 2013).
3

Global marketing management
Marketing mix
Marketing mix plays a vital role in Toyota Corporation. It is the tool to fulfill the needs
and requirements of the consumers across the world. The marketing covers 4Ps (Product, price,
place, and promotion) which have been discussed below (Loureiro, Sardinha & Reijnders, 2012).
Product: There are various product produced by the Toyota in the universal market. Product
strategy is used by the company to identify the needs, requirements, and expectations of the
customers across the world. This strategy also used by the company to differentiate its products
from the competitor’s products.
Price: The appropriate prices of the products are fixed by the company. Further, the company
focuses on the income level of the consumers around the world. It will also help to gain the
competitive advantages in the market (Lucky & Takim, 2015).
Place: The firm has been able to identify and evaluate the market segment and place to sell the
products of the company. Mostly, the company is selling its vehicles in Africa, Europe, Asia and
America (Yüksel, 2012).
Promotion: The advertisement and promotional strategies are used by the company to increase
the sale of the vehicles in the world. It also helps to make a good image in the market (Ivanova,
2015).
Brand management
The brand management plays an integral role in Toyota Corporation in order to build and
develop a good image in the market. It is the most popular and well-known brand in the world.
The company has specialized in automobiles and engineering products. Along with this, the
company uses different marketing strategies to increase and enhance the brand of the company.
Through brand management, the company is able to increase the profit and revenue of the
company (Li et al, 2016).
STP (Segmentation, targeting, and positioning)
Segmentation: It is the important strategy of the company. The company divides the market into
the different segments of the world in order to distribute the products in an effective way. Under
4

Global marketing management
market segmentation, Toyota focuses on the businessmen and middle-class people to earn more
revenue in the market (Venter, Wright & Dibb, 2015).
Targeting: Toyota Corporation focuses on the target market in order to attain the success and
growth of the company. It monitors on the effective market to beat the competitors in the market.
Further, it makes various strategies to reach its target audience in the world.
Positioning: This strategy helps to make a good and effective position in the market. Through
positioning strategy, the company selects the suitable marketing mix for the target audience.
Under positioning strategy, the firm uses generic strategy and differentiation strategy in order to
gain the competitive benefits in the automotive industry.
PESTLE analysis
The PESTLE analysis is used by the company to identify and measure the external
environment to beat the competitors across the world. The PESTLE analysis of Toyota has been
discussed below.
Political: The government rules, regulations, laws affect the business activities and operations
adversely. Therefore, Toyota must focus on the political factors in order to gain the competitive
benefits around the world (Hanzaee & Rouhani, 2013).
Economic: The economic factors include inflation rate, interest rate, unemployment rate and
growth rate. These factors influence the trading activities and operations adversely. These
elements must be controlled and managed by the company (Sair & Shoaib, 2014).
Socio-cultural: The socio-cultural factors include culture, values, customs, religion and lifestyle
of the people. These factors affect the vehicles and fuel efficiency of the Toyota. The company
should evaluate and measure these factors to accomplish the goals and objectives of the firm.
Technological: The technology such as internet influence the sale of the Toyota products in the
market. Further, the firm has introduced hybrid technology to gain the competitive advantages
within the organization (Roh, Hong & Min, 2014).
5

Global marketing management
Environmental: The environmental factors include weather; climate and globalization which
influence the sale of the Toyota vehicles. Therefore, the company must maintain safety
regulations, and environmental standards to expand the business activities globally.
Legal: There are various legal factors exist in the macro environment which affects the activities
and operations of the company. The legal factors include the taxation, competition law, and
intellectual property law. Therefore, the company must focus on these factors to expand its
business globally (Thompson, 2015).
SWOT analysis of Toyota
The SWOT analysis is done by the company to measure and identify the strengths,
weakness, opportunities, and threats of the company. The SWOT analysis has been discussed
below (Yuan, 2013).
Strengths Weaknesses
 It is the popular and well-known brand
in the world.
 It used hybrid and innovative
technology.
 It uses cost leadership pricing strategy.
 The organizational structure of Toyota
is not good and effective.
 Weak and low profitability.
 Toyota unable to keep a balance
between the changes in price and
demand.
Opportunities Threats
 The company is launching the solar
power vehicles.
 It also introduces ecology friendly
cards.
 The global market is available for sale
the vehicles of the company.
 Increasing oil prices and competition.
 Changes in the exchange and interest
rates.
 Changes and modification in
technology.
6

Global marketing management
Porter five forces analysis
The porter five forces model shows that the company should focus on the competitors in
the global market. Along with this, the firm needs to analyze and evaluate the needs,
expectations, and choices of the customers around the world. The porter five forces model has
been discussed below (Kajanus et al, 2012).
Competitive rivalry: The Company needs to focus on the competitors of the Toyota. There are
various factors affect the competitive rivalry in the market. Therefore, effective and dynamic
strategies should be used by the company to gain the competitive advantages in the world.
Bargaining power of buyers/customers: The customers affect the business activities and
revenue of the Toyota. The external factors give contribution to the barraging power of
customers. These factors include high and good quality of information and low switching cost.
The company should focus on the desires, requirements, behavior, and needs of the suppliers.
Bargaining power of suppliers: The main aim of the Toyota suppliers is to improve the
activities and operations of the business. Thus, the firm must monitors on the bargaining power
of suppliers and weak forces within the organization. It helps to attain the mission and vision of
the firm with maintaining sustainability at the workplace (Mohapatra, Choudhury & Ganesh,
2017).
Threats of the substitutes: Substitutes affect trading activities of the company by producing the
similar products in the market. Thus, the Toyota should identify the plans, policies, and strategies
of the competitors to overcome on the competitors around the world.
Threats of new entrants: New entrants are considered the potential and competent competitors
of the company which influences the business of the firm. Hence, the company must evaluate
and measure the new entrants to reduce the risks and key challenges of the firm.
7

Global marketing management
(Source: https://research-methodology.net/toyota-porters-five-forces-analysis/)
Competitor analysis
Ford, Volkswagen, and Honda are the major competitors of the Toyota. The ford
company has maintained strong position in the American market. The financial position of the
company is very strong. These are the strengths of the ford around the world. Low stock prices
and poor reputation and status with investors are the major weaknesses of the Ford motor
company (Jindal, Laveena & Aggarwal, 2015).
The product portfolio of the Honda is diversified and its position is very strong in Asia.
These are considered the strengths of the company. The weaknesses include that Honda is
dependent on the North America and low investment in research and development. These are the
major weaknesses of the company.
BCG matrix of Toyota
The BCG matrix of the Toyota Corporation plays a significant role to attain competitive benefits
and to gain the long-term revenue of the company. The BCG matrix has been discussed below
(Soltanifar, & Ansari, 2016).
High relative market share Low relative market share
High market growth rate Star
 Prius hybrid
 Luxury sedans and
Lexus
Question
 Small car for China as
well as India.
 Corolla/Camry as
8

Global marketing management
 Land Cruiser SUV hybrids
 Scion is good for youth
in the USA.
Low market growth rate Cash flow
 Venza-MPA and
Innova
 Camry-Corolla sedans
DOG
 Tundra pick up
 Declining and
decreasing market in
Europe and UK.
Cultural dimension
The organizational culture of the Toyota Corporation is unique and dynamic to attract
more customers in the global market. Hofstede’s cultural dimension model is used by the
company to beat the competitors in the market to provide cross-cultural training to the
employees. The Hofstede model focuses on the five value dimensions of the culture which also
affect the national culture (Autio & Thomas, 2014).
Hofstede cultural dimension model
(Source: https://www.hofstede-insights.com/country-comparison/japan/)
9

Global marketing management
Toyota is expanding and flourishing its business activities day by day. The company
operates its business in US, Japan, China, Indonesia, India, Kenya, UK, and France. Therefore
the firm must focus on the environment of the different countries to reduce the key challenges
and risks of the market. In this way, the firm can make a good position in the global market
(Takami, 2014).
Ethical dimension
Ethics is a branch of philosophy which involves defending, systematizing and suggesting
the concepts of right or wrong conduct. The firm must maintain business ethics and code of
conducts within the organization. Further, experimentation, respect, imagination, humility, and
integrity are the core values of the Toyota which should be followed and maintained by the
employees to expand its business globally (Bowen & Zheng, 2015).
The company uses the code of conducts in the organization in order to fulfill the social
responsibility of the company. The Toyota code of conducts is considered the significant guiding
tool to conduct and run business activities and operations globally. It also helps to reduce the key
issues related to the environment and society. By maintaining a code of conduct, the company is
able to fulfill the need and desires of the consumers across the world (García-Madariaga &
Rodríguez-Rivera, 2017).
There are various ethical challenges faced by the Toyota Corporation within the
organization. The firm is not able to build and develop effective and unique communication with
customers in the global market and it also affects the loyalty and morality of the employees.
Apart from this, the company has to face the litigation and criminal problems in the United
States. The ethical issues also affect the confidence and integrity of the consumers across the
world. Further, the company is fixing the high prices of products and vehicles to determine the
long-term growth and success of the firm. These are the ethical issues in the Toyota Corporation
which should be reduced and managed by the company (Jindal, Laveena & Aggarwal, 2015).
Case study
Toyota is the global leader in the auto industry but in 2009, the company had to face
various issues in the global market. Toyota had to recall more than 8 million vehicles due to
10

Global marketing management
unintended acceleration and poor window system. It was the biggest challenge for the company.
As a result, the sale of the company decreased by 16 percent and costs increased by $5 billion in
that year. The growth and success of the company are also affected by this key issue and
challenge. Therefore, various marketing strategies were made by the company to overcome on
this key issue within the organization.
Discussion
 Technology and customer satisfaction were the main forces in the Toyota. Due to this
crisis, the customer had to suffer a lot of problems. It also affects the sales and revenue of
the company. It also affected the buying behavior of the consumers around the world. It
also affects the brand image of the company.
 The company took various actions to resolve this issue within the organization. Toyota
appointed a team to address this issue. It developed and built a recovery plan to resolve
this issue. The company had developed a communication blueprint plan to identify and
evaluate this issue.
 Marketing partnership strategy was used by the company. Further, collaboration strategy
was used by the Toyota. Apart from this, brand reputation rebuilding strategy was
implemented by the company. In addition, all the vehicles were recalled by the company
to resolve this issue. Further, effective and unique communication strategies were also
used by the company.
 Various effective and dynamic strategies were used by the company to regain its position
in the market. As a result, the company overcame and reduced this issue. Further, Toyota
also gained corporate reputation and goodwill in the market. The company again started
its business activities and operations in an effective way.
 The company could have used effective and innovative technologies to overcome this
challenge in the market. Further, effective and unique collaboration must have
maintained by the company with customers. They should have resolved their problem
and key issues by providing effective and unique vehicles.
 Porter five forces model was used by the company to resolve and address this issue.
Thus, the company gained competitive benefits in the global market.
11

Global marketing management
Conclusion
On the above aforesaid information, it has been measured and concluded that Toyota is
one of the largest players in the world. Further, SWOT analysis, porter five forces model, and
pestle analysis are done by the company to identify the major competitors of the company. These
tools are also used by the company to gain the completive benefits within the organization. In
addition, marketing mix and BCG matrix are also done by the company to reduce the key
challenges of the market. In addition, the company should focus on the ethical issues to build and
develop a brand image in the global market. Apart from this, the company uses Hofstede cross-
cultural model to provide training and development coaching within the organization.
12

Global marketing management
References
Autio, E., & Thomas, L. (2014). Innovation ecosystems. The Oxford handbook of innovation
management, 204-288.
Bowen, S. A., & Zheng, Y. (2015). Auto recall crisis, framing, and ethical response: Toyota's
missteps. Public Relations Review, 41(1), 40-49.
Fan, D., Geddes, D., & Flory, F. (2013). The Toyota recall crisis: Media impact on Toyota's
corporate brand reputation. Corporate Reputation Review, 16(2), 99-117.
García-Madariaga, J., & Rodríguez-Rivera, F. (2017). Corporate social responsibility, customer
satisfaction, corporate reputation, and firms’ market value: Evidence from the automobile
industry. Spanish Journal of Marketing-ESIC, 21, 39-53.
Hanzaee, K. H., & Rouhani, F. R. (2013). Investigation of the effects of luxury brand perception
and brand preference on purchase intention of luxury products. African Journal of
Business Management, 7(18), 1778.
Ivanova, K. (2015). Market Potential Analysis of Finland and the UK; Business case–“Sidebar
business proposition”, Case Company: Orion Automotive.
Jindal, S., Laveena, L., & Aggarwal, A. (2015). A comparitive study of crisis management-
Toyota v/s General motors. Scholedge International Journal of Management &
Development ISSN 2394-3378, 2(6), 1-12.
Kajanus, M., Leskinen, P., Kurttila, M., & Kangas, J. (2012). Making use of MCDS methods in
SWOT analysis—Lessons learnt in strategic natural resources management. Forest
Policy and Economics, 20, 1-9.
Li, C. Z., Hong, J., Xue, F., Shen, G. Q., Xu, X., & Luo, L. (2016). SWOT analysis and Internet
of Things-enabled platform for prefabrication housing production in Hong Kong. Habitat
International, 57, 74-87.
13

Global marketing management
Loureiro, S. M., Sardinha, I. M. D., & Reijnders, L. (2012). The effect of corporate social
responsibility on consumer satisfaction and perceived value: the case of the automobile
industry sector in Portugal. Journal of cleaner production, 37, 172-178.
Lucky, B., & Takim, S. (2015). Manufacturing Defects in the Automobile Industry, a Case Study
of the Remote Causes and Effects of Toyota’s Transmission Malfunctions in
Cars. IJEAS, 2, 15-28.
McLean-Cobban, W. (2013). The tortoise wins the race (Review of Lessons for Turning Crisis
into Opportunity: Toyota Under Fire: How Toyota Faced the Challenges of the Recall
and the Recession to Come Out Stronger by Jeffery K. Liker and Timothy N.
Ogden). Journal of Professional Communication, 2(1).
Mohapatra, S., Choudhury, A., & Ganesh, K. (2017). Framework for supporting'business process
reengineering'-based business models. International Journal of Business Innovation and
Research, 13(4), 451-474.
Roh, J., Hong, P., & Min, H. (2014). Implementation of a responsive supply chain strategy in
global complexity: The case of manufacturing firms. International Journal of Production
Economics, 147, 198-210.
Sair, S. A., & Shoaib, M. (2014). Measuring the effectiveness of brand positioning strategies
perceived by consumers. Science International-(Lahore), 26(1), 353-361.
Soltanifar, E., & Ansari, M. (2016). Matrix-Collage: An Innovative Methodology for Qualitative
Inquiry in Social Systems. Electronic Journal of Business Research Methods, 14(1).
Takami, T. (2014). Production engineering strategies and metalworking at Toyota motor
corporation. Procedia Engineering, 81, 5-17.
Thompson, A. (2015). Toyota’s generic strategy and intensive growth strategies. Retrieved
April, 27, 2016.
Venter, P., Wright, A., & Dibb, S. (2015). Performing market segmentation: a performative
perspective. Journal of Marketing Management, 31(1-2), 62-83.
14

Global marketing management
Yuan, H. (2013). A SWOT analysis of successful construction waste management. Journal of
Cleaner Production, 39, 1-8.
Yüksel, İ. (2012). Developing a multi-criteria decision making model for PESTEL
analysis. International Journal of Business and Management, 7(24), 52.
15

Global marketing management
Appendices
1. Toyota business strategies
2. Toyota product development process
16

Global marketing management
3. Toyota marketing strategy
17