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HI6006 - Assignment on Competitive Strategy1

   

Added on  2020-03-02

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Running head: COMPETITVE STRATEGY Competitive StrategyName of the Student:Name of the University:Author note:
HI6006 - Assignment on Competitive Strategy1_1
1COMPETITVE STRATEGYSection 1: Strategy plays an important role in determining the success of a company as it is onlywith the help of a strategy, can an organization succeed in accomplishing its organizationalgoals. The strategy of a company is designed in a way that can help a company gain competitiveedge over the rival companies and this is exactly the reason why the business strategy of acompany is inextricably associated with the organizational goals of the company (Kryscynski2017). Toyota Company has emerged to be one of the most popular and recognized carcompanies in the world. The company has kept on adopting embracing effective strategies andhence the company is being selected to understand exactly which strategy has helped thecompany become the number one company in Japan and the most formidable company in globalautomobile market by the year of 2003 (Thompson 2015). As it is a well-known fact, Toyota operates in a global market, and the company is notfree from competition. In fact, the company faces serious threats from some of the most powerfulcompetitors such as Honda, Hyundai, Nissan and Chevrolet. Hence, the company had to adopt aneffective strategy to sustain its position. The company as a result, follows the generic strategythat helps it to survive in the global market. The generic strategy of Toyota is dependent on twoimportant strategies- cost minimization strategy in operation and product differentiation. Sincethe company produces almost similar cars produced by its competitors, the company is requiredto provide goods at a lower cost. However, since the same is not possible with high expenses, thecompany follows an operational cost cutting strategy, as low operational cost is equivalent to lowexpense. By spending much lesser on the manufacture and operation of cars, Toyota attainscompetitive edge over the rival companies by selling its products at much lower cost (Thompson2015). It is important to note here that Toyota reduces the operational cost of its company by
HI6006 - Assignment on Competitive Strategy1_2

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