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Toyota Case Analysis




Toyota is one of the Toyota Motor Corporation (TMC) brands .It is the world's 5th most valuable brand in the world, worth US $53.5 billion .The company has 4 different brands including Daihatsu, Hino, Lexus and Hino., Toyota Motor Corporation (TMC) is a Japanese company which was founded in the year 1937.It is the leading automotive manufacturer in the world (Morgan & Liker 2006).This paper seeks to analyze the strengths and weakness affecting Toyota way of marketing their brands, their financial strategies, R&D, operations & logistics and also HRM and Information System .

Marketing. Product mix is the major marketing strategies used by Toyota. They have various products in the market like Toyota automobile, Lexus automobile, welcab series and marine products. Toyota also have spare parts and accessories and engines. This diverse production of products make Toyota very popular in the product mix. Amasaka (2011) urgues that the company also manages to reach a very wide market thus reducing different risks which are market oriented. Other factors include pricing of their products, transaction places, and promotion of their products.

Strengths include; development of Toyota Production system .The system was based on Just-in Time concept. The other strength is the Competence in hybrid vehicle production. Toyota heavily invested in its hybrid vehicle (HV) lineup and is now betting its long-term future on HVs and electric HVs. (Amasaka 2011).

Some of the Weaknesses are; Lack of competence in autonomous vehicles Toyota has been very reluctant to invest in vehicle technology. Amasaka (2011) states that the company R&D has no plans of introducing completely autonomous vehicles to the market in the near-future. Weak presence in China, though China is the largest automotive market in the world, Toyota has captured only 4.5% market share in China, which could hinder their potential to increase sales. Poor brand portfolio. Toyota sells its vehicles have 4 different brands only; Hino, Daihatsu, Lexus and Toyota. Making the brand portfolio very slim

Finance. Toyota Motor Corporation has being breaking their financial records for the last few years (Heller & Darling 2011). Toyota successfully planned their future with new automobile plants in many different countries, signed joint production agreements, and united with many different companies. Heller & Darling (2011) states that the company has an inventory turnover ratio of 12.37.This is well above the industry average of 8.2

Strengths includes; high productivity due to high turnover, and also high capabilities to penetrate in the market due to effective promotion methods

Weaknesses includes; high chances of overspending and also high business risk in case of diversification due to due to poor management

Research and Development (R&D).Toyota is ever famous for its innovative culture, showing total commitment to the developing world-class technologies based on their basic spirit to be at the vanguard of the times through infinite creativity, inquisitiveness and pursuit of improvement (Chanaron 2001).The company's focus on being ahead of its competition by introducing some of the most innovative vehicles in the market has proven to be a successful choice.

Strengths for R&D are; the company is enabled to improve the hybrid technologies further. Also, through R&D the company works to improve its gasoline engine's fuel economy as well as improvement in technology in connection with more stringent emission standards, the company has managed to promote improvements in functions and fuel economy of clean diesel engines.

Weaknesses for R&D include and not limited to; an expensive Process Toyota's R&D expenditures were approximately ''1,055.6 billion (US$9.37 billion) in fiscal 2016, ''1,004.5 billion in fiscal 2015 and ''910.5 billion in fiscal 2014.Also, outsourcing of staffs is expensive to manage and train.

 Operations & Logistics.Logistics includes a variety of operations for the movement of materials (parts) and products, starting from procurement of parts to the delivery of products to the target customers. Operations located between parts production to manufacture of the final product are called production parts logistics. In the Toyota Production System Production parts logistics is based on the Just-in-time principle which generally means transporting what is needed only, and when it is needed, and in needed amount.( Kaneko & Nojiri 2008)

The significant strengths are; it ensures efficient and timely mater, effective operations .The logistics model also enables  Toyota to operate a very effectively logistics operation.

Some of the weakness includes; logistics are expensive since they need involvement of high class machineries, which are efficient and also requires high manpower, some operations especially in remote areas are time consuming due to inaccessibility of resources

 HRMHuman resources management in Toyota is an organizational function that personnel and operates a unit. These workforce deals with problems related to individuals within the organization. Liker & Hoseus (2009) states that The Toyota  approach is much more holistic and broad. It starts with an attitude that the power of the company is based on kaizen and admiration for people.

Strengths in Human resource include and not limited to; Creation of a good working environment for the employees and also provide more career opportunities, and incentives to mobilize their creativity and productivity. (Liker & Hoseus 2009)

Weakness in HRM includes; low or poor consideration in performance, hiring and also rewards. Toyota needs to be recognizing employees with good performance, behaviors and attitude. They also use of unskilled employees or rather inexperienced ones who don't have capabilities of handling some challenges (Liker & Hoseus 2009).

 Information System.Toyota while responding to the external environment, has increased growth and innovation within the information systems by use of technologies of processing information. This technologies include; rapid globalization of development, sales operations; manufacturing, advancements in car electronics technologies; compliance with global environmental standards; and changes in the Japanese and global economy. (Monden 2011).

Strengths of information system includes; Capability to merge their corporate objectives all over the world by utilizing their systems properly, help in production of statistical documents and information analysis, Moden (2011 ) urgues that the IS systems of Toyota offer the tools essential to obtain a better knowledge of the market as well as an improved knowledge of the company itself.

Weakness of information system includes; Toyota production systems are difficult to implement and also very expensive, while some like learning management systems are anti-social since they have little social interaction. Others like warehouse management system take a lot of time get ready and to implement


Amasaka, K. (2011). Changes in marketing process management employing TMS: Establishment of Toyota sales marketing system. China-USA Business Review, 10(7).

Chanaron, J. J. (2001). Implementing technological and organisational innovations and management of core competencies: lessons from the automotive industry. International Journal of Automotive Technology and Management, 1(1), 128-144.

Heller, V. L., & Darling, J. R. (2011). Toyota in crisis: denial and mismanagement. Journal of Business Strategy, 32(5), 4-13.

 Kaneko, J., & Nojiri, W. (2008). The logistics of Just-in-Time between parts suppliers and car assemblers in Japan. Journal of transport geography, 16(3), 155-173.

Liker, J. K., & Hoseus, M. (2009). Human resource development in Toyota culture. International Journal of Human Resources Development and Management, 10(1), 34-50.

Monden, Y. (2011). Toyota production system: an integrated approach to just-in-time. CRC Press.

Morgan, J. M., & Liker, J. K. (2006). The Toyota product development system (Vol. 13533). New York: Productivity Press.

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