International Business Analysis: Toyota Motors' Operations in India and Market Entry Strategies

Running head: INTERNATIONAL BUSINESS ANALYSIS
INTERNATIONAL BUSINESS ANALYSIS
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1INTERNATIONAL BUSINESS ANALYSIS
Table of Contents
1. Introduction................................................................................................................2
2. Literature review........................................................................................................2
3. Company analysis......................................................................................................5
4. Analysis and discussion.............................................................................................6
5. Conclusion and implication........................................................................................9
References....................................................................................................................10

2INTERNATIONAL BUSINESS ANALYSIS
1. Introduction
As discussed by Chetty, Ojala and Leppäaho (2015), the developments and growth
that has been seen in the economies of Asia have attracted many different global
organizations from all over the world. The dynamic nature of the economy has been a major
reason behind the growth opportunities that are provided to global organizations by emerging
economies in Asia (Cuypers, Wilden & Tang, 2018). The organizations have been able to
improve the profitability levels and revenues in the industry with the support that is provided
by the dynamic economies and huge customer base as well. The multinational or global
organizations are also able to increase their presence in different parts of the world with the
help of effective support offered by dynamic external environment based conditions (De
Villa, Rajwani & Lawton, 2015).
The report will be based on the analysis of an organization that has entered an
emerging economy in Asia in order to improve the levels of revenues and to increase their
presence on the industry as well. The multinational organization that has been taken into
consideration for this analysis is Toyota Motors (Gabrielsson, Gabrielsson & Sinha, 2017).
The home country of Toyota Motors is Japan and the host country that will be analysed in
this case is India. The analysis will be mainly based on the ways by which Toyota Motors has
stared its operations in India and the revenues that have been earned by the organization as
well.
2. Literature review
As discussed by Hohenthal, Johanson and Johanson (2015), the business environment
that has been developed in India is based on the operations of different organizations after the
independence period. Four years after the independence of the country, India had been able to
develop effective levels of foreign reserves that were considered to be largest in the world.

3INTERNATIONAL BUSINESS ANALYSIS
Around 4.6 % of the total GDP of the world had been generated by the successful operations
of different organizations in India. India was successful in developing a successful position in
global economy with the help of the dynamic business environment that had been developed
in the country (Hollender, Zapkau & Schwens, 2015).
According to Hollender, Zapkau and Schwens (2017), the competitive advantage over
the other countries had however not been effectively realised by India in the last few years.
India has proved to become the fastest growing economy in the world and has been highly
successful in the operations in attracting high levels of foreign investment from the
organizations that operate in the developed countries. The organizations that are a part of
developed countries have been able to increase their presence by lowering the costs based on
production. India has been able to provide major levels of opportunities based on growth to
the organizations in order to maintain the levels of their revenues and profitability (Holtgrave
& Onay, 2017).
Toyota Corporation had started its operations in India in the year 1999. The market
entry mode that had been implemented by Toyota in India is termed as Joint venture. The
organization had entered the country in the year 1999. The organization has recently
completed twenty years in the country with the support that has been provided by its partner
Kirloskar Motors. The company has also reached the market of 1million unit sales recently
with the help of proper sales of different types of products are services (Toyotabharat.com.,
2019). The different types of products that are offered by Toyota in India include, Innova
Crysta Fortuner, Camry Hybrid, Corolla Altis, Etios Liva, Land Cruiser. The organization has
been successful in catering to the needs of different segments of customers with the help of
diverse product line up. Toyota has been improving the standards based on the terms of
safety, quality, performance, comfort and the levels of fuel efficiency as well
(Toyotabharat.com., 2019).