Toyota Motor Corporation's Competitive Advantage

The paper discusses the competitive advantage of Toyota Motor Corporation, a multinational company in the automotive industry. The company's unique production system and VRIO framework are highlighted as key competitive advantages. The importance of customer value is also emphasized, with the need to satisfy consumer needs and demands through high-quality innovative products at affordable prices. The paper also touches on cost reduction strategies and the pressure to innovate and maintain a strong brand image in the face of intense competition.

Toyota Motor Corporation
International Business

Table of Contents
Introduction....................................................................................................................................................2
Business detail...............................................................................................................................................2
Competitive advantage...............................................................................................................................2
Value..............................................................................................................................................................2
Costs...............................................................................................................................................................3
Feedback from manager.................................................................................................................................3
References......................................................................................................................................................4

Introduction
In this present paper, we will discuss the competitive advantage of Toyota Company. The paper
also discusses the business details, values, costs and feedback from manager. The company is a
multinational corporation in japan. It is the thirteenth largest manufacturer according to its
revenue across the world. The company lies in the automotive industry, and the total employees
of the company are 338,875 worldwide. It is the largest listed company in Japan according to its
market capitalization. The company serves various products such as automobiles, commercial
vehicles, luxury vehicles, engines and others.
Business detail
Business Name: Toyota Motor Corporation
Nature of the business: Automobile Company
Manager’s Name: Kyoichi Tanada
Date of Consultation: 24/11/2016
Competitive advantage
Toyota production system is the unique competitive advantage of the company which helps to
distinct among the competitors within the same industry. The company is using five strategies
which help to differentiate its products from the competitors. Differentiate and cost leadership
strategy seeks competitive advantage in a broad range of the market. The company has
successfully combined the differentiation and cost leadership strategy which helps to meet the

consumer demands and expectations with the meeting of price expectations (Suri et al., 2016).
The company has the effective production system in the global car industry which is the unique
competitive advantage that helps to stand out among its competitors. Another competitive
advantage is VRIO framework which is an internal framework that helps to build competitive
advantage among the competitors. The corporate strategy of the company is helping to manage
the resources in a most effective manner (Barney et al., 2012). Another competitive advantage is
to improve management platform which is not explored by the company. The rival business is
responding towards the competitive advantage by providing innovative products.
Value
The customer values the quality of product and price in the business products. The value to the
customer can be maximized through satisfying the needs and demands of the consumers by
providing the high quality of innovative products with the affordable prices. The value to the
customers can be increased through providing innovative products by analyzing the customer
taste and preference which helps to promote the brand in the eyes of the consumers. The details
analysis of customer behavior is required to develop the marketing strategy which helps to
increase the value of customers (West et al., 2015). The product evaluation needs to be done by
the company in order to maximize the value to the customers which help to build a brand image
through satisfying the customer needs and demand.
Costs
The production cost can be minimized by applying various cost reduction strategies which help
to maximize the profit margin of the company within the particular time period. The cost

minimization analysis method can be used by the company which helps to minimize the cost of
production through examining the various factors which impact on the cost of production of the
company. For example, the procurement of raw material must be done effectively by purchasing
the raw material with the minimum cost by with the best quality. The further efficiencies that
could be made by the company include maximum utilization of resources which helps to add
competitive advantage to the company. The cost benefit analysis must be done by the company
in order to analyze the benefits in relation to the cost. The inventory management of the
company needs to be effective which helps to boost the sales volume of the company by an
availability of product on time.
Feedback from manager
The company is having high competitive pressure because the company has to meet the
expectations of the consumers in order to maintain the brand image in the eyes of the consumers.
The company should continuously produce innovative products in order to maintain the brand
image of the company. The competitive pressure forces the company to continuously innovative
the product through market research in order to understand the customers taste and preference.
The company has good brand image in the eyes of the customers which needs to be maintained
through various marketing strategies such as an advertisement, product positioning, and others
which helps to retain the brand image in the eyes of the customers.

References
Barney, J. B. (2012). Purchasing, supply chain management and sustained competitive
advantage: The relevance of resource‐based theory. Journal of Supply Chain Management, 48(2),
3-6.
West, D., Ford, J., & Ibrahim, E. (2015). Strategic marketing: creating competitive advantage.
Oxford University Press.
Suri, R. (2016). It's about time: the competitive advantage of quick response manufacturing.
CRC Press.