Business Strategies of Toyota Motor Company

Running head: GLOBAL BUSINESS OPERATIONS
GLOBAL BUSINESS OPERATIONS
Name of the student:
Name of the university:
Author Note

1GLOBAL BUSINESS OPERATIONS
The aim of this essay is to discuss the business strategies of one of the most important car
manufacturing companies of the world namely Toyota Motor Company. The business strategies
of this company have different facets which have helped it to become the winner of the industry.
Toyota has an important market share in the continents like Africa, Europe and United States.
Along with this, it is the market leader in the Australian market. Internationalisation has
promoted the process of liberalisation which has created advantages to motivate the development
of the productive forces and the economic interactions among the nations. This had a positive
impact on this company as it expanded globally in no time. However, the company does not only
focus on the profit making but ascribes with the suitability goals laid by the international
organisations and support the sustainable growth.
The type of market in which the business operates has an international coverage.
Toyota Motor corporation is a global company which produces trucks, buses, cars and robots.
The headquarter of this company is in Toyota City, Japan. It is the largest car manufacturer in
Asia and second largest car manufacturer in the world (Toyota-global.com 2019). Toyota is one
of the three most important Asian car manufacturing companies which compete in the Global
market with mainly the manufacturers based on the USA. The other two companies are Honda
motor and Nissan Motors. Toyota motor company also provides Financial Service through
Toyota financial services and subsidiaries. It also works in other fields like medical assistance
rather than only manufacturing of cars. The automotive products which this company sells in the
Global market are under the name of Toyota, Lexus and Scion.
This company has factories in all over the world where it would use as well assembles the
vehicles for the local markets. This company has assembling and manufacturing plants in Japan,
Canada, Poland, Turkey, France, India, Brazil, United Kingdom, Mexico, China, Malaysia,

2GLOBAL BUSINESS OPERATIONS
United Kingdom, South Africa, Indonesia and most recently in the developing countries like
Venezuela, Argentina and Pakistan (Toyota-global.com 2019). The first Toyota car
manufactured outside Japan was in Brazil in 1959. The main factor of the products of Toyota
motor company is its high-quality products. The Japanese trust on their ability to make such
goods which cannot be improved anymore therefore they keep on struggling for increasing the
quality of everything they make. The philosophy of Kaizen which means constant improvement
has been used by Toyota motor company for years and leading its growth (Kato and Smaley
2012).
This particular car manufacturing company has gained a huge exposure after the
globalisation hit the business of the countries. The role played by internationalisation in
building Toyota’s profile overseas is hugely important. Internationalisation of the business has
positively supported the growth of business in all over the world and Toyota was not an
exception. This process had affected not only the trade but also the manufacturing, finance,
services, investments in one hand and socio-cultural and environmental factors on the other in
different forms and levels. The economic globalisation on internationalisation has promoted
close relationships, rapid interactions among the international economies and interdependence
among one another (Gillespie and Hennessey, 2011). Therefore, the companies like Toyota
gained comparative advantages in the participated in the process of internationalisation and
grown indispensable trend in this integrated global economy.
As mentioned before the philosophy of Kaizen followed by Toyota Motor Company has
supported it to focus on the Global Quality Assurance policy (Kato and Smalley 2012). It has
localised its manufacturing process as well as its assembly segment in such a way so that
internationalisation do not affect negatively in the business of the company. Since 1957 when the

3GLOBAL BUSINESS OPERATIONS
first car of Toyota motor company was exported to the United States, it has expanded
opportunity of automobile sales across the globe (Toyota-global.com 2019). In last 50 years the
company has found its way to cover 170 countries as well as regions throughout this world. The
exports have continued and developed gradually so also the localisation of the production has
supported its expansion. In response to internationalisation Toyota motor company has built 51
bases in 26 different countries where it designs and researchers so that localisation of the
products can be achieved. These has supported the demand of the Toyota motor company that
they start from development and designing steel production as well as service and sales, it has
achieved consistent localisation as well as globalisation (Gillespie and Hennessey 2011).
It was inevitable that the company would face different type of issues due to
internationalisation and cultural differences between that of Japan and other countries but the
company only focused on the quality assurance which requires that where were the vehicles of
this company is made, it will have the same high quality as well as Assurance of the brand. It
also responded to the internationalisation of trading by eliminating support from its home
country and spread the manufacturing philosophy of Toyota way in all the overseas bases
(Coetze et al. 2016).
In order to keep pace in the highly competitive world after globalisation, Toyota had
brought changes in the operation and made strategies to match with the different needs of the
different market. Therefore, the US market strategies of Toyota Motor company does not have
any connection of with that of the Europe (Collins, Muthusamy and Carr 2015). The business
goes about developing brands for differing market types. There are four types of market
present in the world which include market for perfect competition, monopolistic competition,
oligopoly and monopoly.