Toyota MotorCorporation is a Japanese automobile company founded in 1937 by Sakichi Toyoda.Toyota focuses on vehicle production and sales. Toyota Motor Corporations offersresearch & development (R&D) centers all over the world and each designcenter specializes in a different area of expertise.
Having these designcenters in different parts of the world ensures that Toyota is able to expandtheir knowledge to different cultures. Toyota sources to several differentcountries that produce different pieces of the automobile. For example; Canadaproduces aluminum wheels, USA produces catalytic converters and engines, and Chinaproduces transmissions and engines. Sourcing products to other countries allowsToyota to produce products for the cheapest and the most value for the company.They are also known for sourcing smaller products through third partymanufacturers in other countries.
Different countries may have the labor andraw materials to produce a certain automobile part more efficient and effectivethan a different country may be able to do. They ensure that no matter wheretheir product is made it will have the same quality everywhere and they remainconsistent on how their products are produced. Toyota has fifty-three manufacturing companiesin twenty-eight countries and their vehicles are sold in over one-hundred andseventy countries. There are several marketingstrategies and techniques Toyota uses to get their brand noticeable andrecognized by the consumers.
Toyota uses advertising and promotions throughtelevision and radio commercials, social media marketing, newspapers,magazines, and billboards to reach its target audience. In 2014 the companyspent roughly two billion USD in advertising. As far as customer serviceactivities goes, Toyota provides servicing of vehicles, technical training, andoffer parts and accessories. The company executes the distribution and sales oftheir products because they understand that when consumers want a product theywant it right away, that is why Toyota ensures that their products are easilyaccessible and available even if a customer wants it designed to theirpreferences.
Toyotas products can either be seen physically or online whichallows it easier for consumers to see the product they want. Some problems Toyota faces would becompeting with other automobile companies, more specifically US basedautomakers are stepping into their home market and they are now at a stagnationin Japan. Although Toyota is currently the largest automobile maker they arestill having to compete with other companies. Toyota has the prospect to expandinto emerging markets such as China and India which would force them toconsider market specific products. Since Toyota has split their organizationand have smaller independent companies they are able to develop market specificproducts easier than other competitors are able to do. Moving forward in thefuture Toyota plans to become stronger in the electric car spectrum.
Theyrealize that the world is changing and becoming more environmentally friendlyand for them to continue to be the leader in the automotive industry they needto become more advanced and innovative with the electric car. In conclusion, Toyota is the leaderin the automotive industry and for them to continue to be the leader they needto ensure that they continue doing research and development to continuallyprovide the product their consumers want. Also, they also need to continue tosource to other countries to get the best products for the best price andmanufacture in a timely manner. Key components of the downstream Value Chainconsist of marketing their brand, distributing in an efficient and costlymanner and continuing with customer support after sales.