Global Strategy of Toyota: An Analysis of Key Business Practices

This report provides an analysis of Toyota's global strategy, highlighting key elements that contribute to its success in the international market. The report emphasizes Toyota's adoption of the KAIZEN strategy, focusing on continuous improvement and product quality. It explores how Toyota maintain...Read More

Running Head: GLOBAL STRATEGY OF TOYOTA
GLOBAL STRATEGY OF TOYOTA
Name of the Student:
Name of University:
Author Note:

1GLOBAL STRATEGY OF TOYOTA
Toyota is considered to be one of the leading car manufacturer across the world.
Established in 1937 by Kiichiro Toyoda, this multinational company is considered to be Asia’s
largest car manufacturer and the second largest producer. Therefore, it is pertinent to analyse and
understand the success strategy of Toyota in the international market.
The principle strategy that the organisation follows in the global market is associated
with the strategy of KAIZEN. This strategy is followed in the Japanese market successfully. As
per the research of Chiarini, Baccarani and Mascherpa (2018) the KAIZEN strategy highly
emphasise on the product quality. As a result of that it is pertinent for Toyota to implement the
KAZEN strategy in order to continue the gradual improvement. In course of maintain the quality
of the product, Toyota relies on the staff engagement program. As Iwao (2017) opined that the
KAIZEN strategy helps to manage a continuous business activity with special stress on the
product quality, productivity and competitiveness. Therefore, in the international market also the
KAZEN strategy has a great influence.
The product strategy of Toyota is also accounted with the product quality and
implementation of technologies so that it will help the organisation to continue its success in the
international market as well. The research of Iwao (2018) pointed out that it is highly significant
for the business companies to focus on the quality of the product due to high competitiveness.
The quality of the product is only effective to make a better market capitalisation. The quality is
further supplemented by the advanced technologies. Therefore, creativity and innovation is
identified as another major strategy that Toyota has been practiced.
Product differentiation is another pertinent strategy for Toyota to survive in the market,
there are several ranges of products that Tyota offers to the customers with the purpose to

2GLOBAL STRATEGY OF TOYOTA
encapsulate the market more effectively. Ju, Tong, Hu and Sun (2017) opined that the product
differentiation strategy is entitled to create enough alternatives for the business companies to
offer. Therefore, the customers with different perception and interests are easily being attracted
by the Toyota products. Moreover, in the competitive business market product differentiation can
lead the business organisations to follow the needs of the customers. Toyota follows the same
strategy and highly concerned about the market trends. The Toyota products are also
manufactured as per the needs of the customers and ensures its success in business.
In addition to this, the marketing strategy of Toyota is also unique and effective. Toyota
follows the traditional promotional strategy as it is rightly supported the objectives and vision of
the organisation. The traditional marketing strategy relies on the television advertisings, flyers
and newspaper advertisement (Turner, Shah & Jain, 2018). The organisation is considered to be
one of the leading investors in marketing with an average spending of 435 billion per year. It
represents the importance of effective marketing strategy for Toyota to gain a competitive
position in the international market.
Furthermore, a matured step can be followed by the organisation in the pricing strategy.
The pricing strategy is vital for the organisation to survive and expand in the international market
successfully (Liu, Zhai, and Chen, 2019). In response to this, Toyota follows the penetrative
pricing strategy to maximise its sales in the widespread market. It is an effective competitive
strategy that helps Toyota to gain success in the international market effectively.
Therefore, a number of strategies has been followed by Toyota in the international market
where each of the strategies are responsible to meet particular objectives of the organisation.

3GLOBAL STRATEGY OF TOYOTA
However, all those strategies have a common ground of expanding business and incurring high
profitability for Toyota while operating in the global market.

4GLOBAL STRATEGY OF TOYOTA
Reference
Chiarini, A., Baccarani, C., & Mascherpa, V. (2018). Lean production, Toyota Production
System and Kaizen philosophy. The TQM Journal.
Iwao, S. (2017). Revisiting the existing notion of continuous improvement (Kaizen): literature
review and field research of Toyota from a perspective of innovation. Evolutionary and
Institutional Economics Review, 14(1), 29-59.
Iwao, S. (2018). The Diversity and Reality of Kaizen in Toyota. In Industrial Competitiveness
and Design Evolution (pp. 271-298). Springer, Tokyo.
Ju, X., Tong, L., Hu, Z., & Sun, B. (2017). Determinants and Consequences of Product
Differentiation Strategy: Evidence from Chinese Indigenous Exporters. International
Business Research, 10(9), 60-72.
Liu, J., Zhai, X., & Chen, L. (2019). Optimal pricing strategy under trade-in program in the
presence of strategic consumers. Omega, 84, 1-17.
Turner, J., Shah, R., & Jain, V. (2018). How brands are using nonlinear marketing to address
consumer resistance to traditional marketing strategies. Journal of Brand Strategy, 6(4),
397-408.