The Competitive Strategy of Toyota Motor Corporation

The Competitive Strategy of Toyota Motor Corporation
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Title: The Competitive Strategy of Toyota Motor Corporation
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The Competitive Strategy of Toyota Motor Corporation
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Executive Summary
This project summarizes the Introduction of Toyota Motor Corporation. A literature Review has
been presented with a brief case study of Toyota Motor Corporation on Indonesia Markets.
Analysis of industry and organizational strategy with relevance to SWOT Analysis and PESTLE
analysis has been given. Evaluation and role of Project Management Offices have been
explained. An evaluation of Portfolio selection and principles has been explained. A strategic
approach to project management with a brief overview of Porter’s five forces model has been
given. A critical analysis has been done on Toyota Motor Corporation followed by a conclusion.
Contents

The Competitive Strategy of Toyota Motor Corporation
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Introduction......................................................................................................................................3
Literature Review............................................................................................................................3
The Successful Market dominance of Toyota in Indonesia- Case Study........................................6
Analysis of Industry and Organizational Strategy....................................................................................7
SWOT Analysis.........................................................................................................................................8
PESTLE Analysis........................................................................................................................................8
Analysis Application of Portfolio Selection and Evaluation Techniques and Principles-Portfolio Matrix. 9
A Strategic Approach to Project Management-Porter’s Five Forces Model..........................................11
Evaluation of Role and Function of Project Management Offices.........................................................12
Conclusion.....................................................................................................................................14
References......................................................................................................................................15
Introduction
Established in 1937, Toyota Motor Corporation is an automobile manufacturer based in
Toyota, Aichi, Japan. Toyota Motor Corporation is the fifth largest company in the whole world

The Competitive Strategy of Toyota Motor Corporation
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and comprises more than 300,000 employees. The company has been engaged in the sale of
commercial vehicles, minivans, passenger cars and related accessories. Some of the brands are-
Lexus, Toyota, Hino and Daihatsu. The annual revenue of Toyota Motor Corporation is 213
billion dollars. Toyota Motors has a wide variety of small cars in its portfolio. The steeply rising
prices of cars have been the major factor in change of consumer preferences. Toyota Motor
Corporation is a leader in the automotive industry.
Literature Review
The paradigm shift in the behavior of consumers with relevance to purchasing of small
and hybrid cars in an emerging economy like Indonesia has been studied. The rise in the income
of an affluent class, induces a buyer to purchase differentiate products. The retail price of a car is
directly proportional to per capita income, rising fuel prices and innovation. According to Dutta,
Disposable incomes are the determinants of predisposition to purchase automotive products
(Dutta, 2011). In the West, the automotive revenue has shown a decline and this can be highly
attributed to the financial crisis. The manufacturing cost and retail price of a car is largely
influenced through the incentives and consumer demand. Japanese car-makers are into
manufacturing of fuel efficient models and attracting the high profile locals is a prime concern.
The Toyota Company aims to expand its production in Indonesian markets and mitigate risk
factors by understanding the local needs of the people. The Japanese Car manufacturer has a
centric focus to alleviate the currency impact, by increasing the output by 50 percent. The
strategic approach to project management is a very complex approach. The strategic
management approach shows a high frequency of automobile firm managers adopting the Porter
five forces model and other strategic models to assess the firms competing strategy with others.