The Toyota Motor Corporation Marketing Essay

Toyota Motor Corporation was a best known car maker founded in twelvemonth 1937. It performs both automotive, which under the trade name Toyota, Lexus, Hino, Daihatsu, along with several non-automotive. Toyota, n.d.. Furthermore, Toyota Corporation across the universe preponderantly locates in North America, Europe, and Asia. Toyota chiefly aims at localisation and joins with car companies in foreign market in order to be the leading in car market.

Toyota had used different manner of entry in every portion of the universe which are the China Brazil, United States, and Thailand. To discourse farther the entry manners chosen by Toyota, allow ‘s take the latest market it enters as an illustration, Thailand.

Toyota began runing in Thailand as Toyota Motor Gross saless in twelvemonth 1956. ( Toyota Motor Thailand Company Limited, 2004 ) . Toyota started exporting to avoid rivals from deriving first-mover advantaged in new markets since export is the fastest and lowest hazard manner. However, Toyota Japan chose FDI as a scheme via assembly works in Thailand in twelvemonth 1964 because Thailand was non merely lower cost location but besides lower duty. At one time, Toyota exported car parts to assemble vehicles in Thailand. This aimed at an assembly Centre instead than a maker. On the other manus, Thailand has indicated rapid growing with a stableness of political state of affairs, little spiritual spread, comparatively sufficient technological assets and cheaper labour cost. Therefore, Toyota dressed ore on taking advantage of lower labour cost to derive their merchandise competitory advantage over the rival ‘s merchandise.

Furthermore, Toyota so enrolls to go Toyota Motor Thailand ( TMT ) in 1962 with a joint venture 70-30 joint venture to run and widen mills in Thailand in order to increase production capacity. ( Toyota Motor Corporation History, 2001 ) . In extra, Toyota traveling into new market and spread out possible market to another part and enhance efficiency of merchandise life rhythm. As in twelvemonth 2002, Toyota Japan chose Thailand as production bases by utilizing entirely owned subordinates industry to export more than 90 states because pickup truck market in Thailand is one of the biggest markets. This planetary determination is to cut down dealing and production cost. Furthermore, Toyota Motor Thailand has built web provider locally as a beginning of competitory advantage in footings of parts development capableness, material permutation, lower cost, efficient supply concatenation, and cut down working capital. This was by funding their operations, switching engineering, offering design patents, delegating advisers and preparation in fabricating techniques.

Besides, Toyota subordinates in Thailand have transformed a Centre for production, provider, and research, preparation every bit good as possible market. Besides, Thailand has acquired the engineering transportation for more than 30 old ages. However, Toyota Motor Thailand exports its vehicles and all parts all over the universe to increase Thailand ‘s prestigiousness as a base of first-class automotive industry. ( Toyota Motor Thailand Company Limited, 2004 )

Consequently, Toyota started enters foreign markets with exporting which is the fastest and lower hazard manner, in order to establish their merchandises into wide markets and set up their trade name acknowledgment. Furthermore, with the restraints such as high dealing costs, import limitation policies, and exchange rate volatility. Toyota regulated their entry schemes with FDI, joint venture and wholly-owned subordinates. With the different manners of entry in each state, Toyota is still confronting restrictions such as cultural differences and political hazards.

Toyota has acquired economic system of graduated table and labour cost advantage from their enlargement. Toyota had expands their gross revenues web worldwide in their production and increased their production capacities in their production Centre in many states. Since there is no best entry manner for Toyota, therefore it is a challenge for Toyota to take a suited manner of entry in their industry and be the leader in car industry.

2.0 Current Expansion Schemes

2.1 Strategy Alliance

The importance of corporate to collaborate can convey many benefits to aline parties which have been learned by the participants in the car industry. Thus, Toyota is presently engaged in a bad confederation with BMW, the German Luxury Automobile Manufacturer. The intents of this new synergism between two car manufacturers are to beef up and organize a long-run strategic coaction in four countries which are the joint development of a fuel cell system, architecture and constituents for a future athleticss vehicle, coaction on power train electrification and joint research and development of engineerings taking to cut down weight of the vehicles ( Keegan, 2012 ) .

Both car manufacturers are aiming for “ mid-to-long-term ” branchings for battery building in their production. Other than that, they are seeking to seek for new highs in battery public presentation and capacity which may cut down the impact towards the environmental ( Nagy, 2012 ) . This cooperation would give great chances since Toyota is strong in environment-friendly loanblends and fuel cells vehicles while the BMW ‘s strength is in developing luxury and athleticss autos.

There is an apparent to province that the confederation is able to supply a better window into the accomplishments and the cognition from other houses to larn and make the powerful tools. The cooperation between Toyota and Fuji Heavy Industries contributes attempt to maintain their monetary values low and to able to remain steadfastly of germinating engineering. This scheme has enabled both companies to supply low-cost vehicles and to derive and remain competitory advantages in the car industry ( Hill, 2010 ) .

2.2 Region Centric Approach

Furthermore, Toyota is practising the part centric attack to present its vehicles globally. This attack is about sectioning the markets on the footing of regional similarities such as economic, political, cultural and geographic similarities ( Paul & A ; Kapoor, 2008 ) . Toyota was pre-assessing the economic systems and civilization in that peculiar part before offering its vehicles to different states. For illustration, the same merchandise and services might be provided to the part amongst the ASEAN such as Singapore, Malaysia, and Thailand and so on, because the ASEAN may hold similar economic conditions and they may portion the similarity such as the consumers ‘ value, civilization and behaviour. For cases, Toyota launched Etios in South Africa whereas the Toyota introduced low-cost auto for Brazil and China Market. This attack has been adopted by a few car shapers such as Honda, BMW, and Volkswagen and so on.

Merchandise Development


Toyota is the first to commercialize intercrossed autos but Honda was the first who enter to the market loanblend to the U.S in 1997 and rapidly Honda has won awards. However, Toyota ‘s loanblends vehicles stress on low C emanation whereas Honda loanblends vehicles are focused on fuel efficiency. Even though for low velocity urban traffic, Toyota ‘s Prius met its engine design ‘s end of decreased emanations, with better milage evaluations than the Honda ‘s Insight. However, Toyota ‘s intercrossed vehicles were non every bit good known as Honda ‘s.

In order to exceed the prosperity of Honda ‘s loanblend in globally, the most recent scheme implemented by Toyota is the development of plug-in intercrossed vehicles which continues to perpetrate its attempts towards eco-friendly autos which focus on the pure electric driven, high fuel efficiency and low C emanation. Therefore, Toyota is introducing its merchandises and developing its new merchandises and services which is low-carbon mobility, new manners, wide application of environmental engineerings and substructure for the safer mobility ( Annual Report, 2011 ) .

Toyota Safety Technology

In the twelvemonth 2011 Toyota established Collaborative Safety Research Center in North America as their new base for accident analysis and job declaration. The intent of Toyota ‘s Safety Technology is to prosecute existent safety and do the vehicles less likely to be involved in accidents. Toyota developed effectual safety engineering through accident Reconstruction and analysis. This involves the analysis of the clang informations ; finding why it occurred and what sort of hurt would be suffered by residents. After that they will imitate and use these engineerings and prove the vehicle whether their ends are accomplishable ( Toyota Annual Report, 2011 ) .

Technology such as VSC ( Vehicle Stability Control ) enables braking to be automatically applied to all four person wheels and engine power reduced when the driver system sensed that the auto is on slippery route status ( Toyota Annual Report, 2011 ) . Furthermore, Toyota has besides developed Emergency Response Technology. This engineering is able to foretell danger prior to exigencies that are caused by driver due to losing of consciousness such as maneuvering wheels equipped with cardiovascular proctors that check for abnormalcies while the maneuvering wheel is being gripped ( Toyota Annual Report, 2011 ) .

Toyota New Global Architecture ( TNGA )

Toyota had develop a new scheme model named Toyota New Global Architecture or called TNGA. Under this model it aimed to do the vehicles to be more appealing in footings of styling and handling. The nucleus component of this new scheme is to develop new planetary vehicle designs that are able to be shared across the universe ( Kim, 2012 ) .

Toyota will develop multiple theoretical accounts at one time to increase the figure of common parts. The scheme is for these similar theoretical accounts to be sold across planetary markets. This scheme lowers the production cost at least 30 per centum through utilizing the most of shared parts and cut downing the development clip and increasing profitableness by sharing of engineerings and constituents ( Toyota Announces New Global Architecture -Will Be Used Worldwide, 2012 ) . These include the Camry, Aurion, Kluger and Tarago, along with Lexus RX and ES theoretical accounts ( Flynn, 2012 ) .

Furthermore, the model for the vehicle development will impact the theoretical accounts within the group. The scheme will besides give more authorization to the main applied scientist of each plan, enabling greater design freedom and rushing up the development procedure ( Toyota ‘s New Development Program To cut Costss, Improve Appeal, 2012 ) .It would assist in the creative activity of better autos.

Toyota New Global Architecture scheme has similarity with Ford Company ‘s “ One Ford ” scheme. In 2006, A Ford CEO Alan Mulally had adopted “ One Ford ” scheme. Before following this scheme, Ford had different operation around the universe to develop its ain merchandise line. After following this scheme, Ford produced better merchandise that can vie with its resurgence such as Toyota and Honda ( Flynn, 2012 ) .

3.0 Future Expansion Schemes

3.1 Joint Venture

The first entry manner that Toyota can use is joint venture. Joint venture can be defined as a concerted endeavors entered into by two or more concern entities ( Murray, 2012 ) . Joint venture differs from strategic confederation as the involved parties come to an understanding to a new joint entity for competitory advantage whereas strategic confederation is a partnership where the involved parties take advantage of each other ‘s nucleus strengths ( Thomson, 2009 ) . Toyota should use joint ventures schemes to spread out the hereafter concern to international market as it offers many benefits to the company.

The advantages include but non limited to the increased entree to the market, be it globally or locally. Spouses engaged in a joint venture are able to ease each other in footings of selling and merchandising of merchandises or services to their several bing clients. On the planetary graduated table, joint venture spouses may arise from different geographical locations and hence they are able to ease each other to perforate foreign markets that they are non able to function antecedently ( Terjesen, 2012 ) . Therefore, through joint venture Toyota is able to make for foreign market such as Europe or India.

Following up is the easier entree to engineering and resources. Through joint venture, houses can choose for alternate cooperation with each other to obtain the engineering or resources they need instead than to obtain venture capital for technological enlargement or such. By accessing into the bing technological knowhow and resources of their spouses, houses are able to short-circuit the reverses needed to obtain the needed engineering or resources they desire ( Fea, Christian, 2009 ) . Hence, Toyota is able to salvage a batch of resources and clip in chase for technological promotion through joint venture.

Furthermore, in this epoch of quickly altering international concern environment, joint venture can provides Toyota with the chance to go out from its non-core concerns. Toyota can prosecute in a joint venture that bit by bit separates a concern from the remainder of the organisation and eventually sell it off its spouses in the joint venture ( Bah & A ; Zhao, n.d. ) . Toyota can offer its expertness in car and electrical engineering to its spouses in the joint venture in exchange for their expertness in other Fieldss for illustration bike, which Toyota has n’t serve yet. If the joint venture proves to be successful, Toyota can either farther expand its concern or sell the concern to its spouses.

Joint venture is a proved entry manner, tested by legion transnational companies from all around the universe and is executable for Toyota to follow. One illustration for successful joint venture of car makers is the instance of Ford and Mazda. Mazda foremost rented Ford ‘s fabrication works for its enlargement plan which turned out really good. Ford shortly entered an understanding with Mazda to reacquire 50 per centum interest in the belongings. Hence, nowadays the works now produces both Ford ‘s and Mazda ‘s athleticss vehicles, with technological and expertness sharing between the two ( Fea, Christian, 2011 )

3.2 Licensing

Licensing means the contractual understanding between a licensor and a licensee, giving the subsequently the right to work the licensor ‘s merchandise, procedure, innovation or medium and compeling the licensee to pay a royalty fees from the returns ( Gleeson, 2012 ) . With advanced engineering and direction knowhow that are desired by others, Toyota should implement licencing scheme to spread out their current concern. Licensing in its ain rights is able to offer Toyota several competitory benefits.

Through licensing, Toyota will be able to get information about new markets without holding to put a batch of clip and resources ( The Methods of International Expansion, 2001 ) . The licensee who is purchasing the licence from Toyota is able to supply market information to the house. Hence, Toyota does non necessitate to put as much clip and resources as it supposed to when it is making market analysis from abrasion. This will assist Toyota to conserve valuable resources and clip and use them in more of import countries such as research and development.

Licensing besides enables Toyota to avoid the development costs and hazards associated with come ining a foreign market ( Hill, W.L. , & A ; Hernandez-Requejo, 2011 ) . Through licensing, Toyota merely provides the licence for its licensees without holding to really venture into the foreign market itself. Therefore, Toyota will be free of the costs and hazards by non come ining the market while at the same clip bring forth significant sum of gross through the aggregation of royalty fees. For illustration, Toyota can publish licence to entry degree car maker in China without holding to come in the market itself.

Furthermore, Toyota will be able to bring forth extra income aside from its car concerns. By publishing licence, Toyota can procure instant and guaranteed gross for itself. The payment of the royalty fees may include several types of payments, including but non limited to a guaranteed license payment or variable payment based on the profitableness of the licensees ‘ concerns ( Fowler, 2012 ) . With the high repute and trade name equity every bit good as its celebrated technological and direction expertness, Toyota will hold a high success rate in licensing.

A successful illustration is the licensing of Toyota ‘s intercrossed synergism thrust system to Nissan for the later to develop its ain intercrossed system. Nissan has acquired licence for cardinal constituents of the intercrossed thrust engineering including electronic accountant unit and inverter. Toyota has done this to countervail the heavy development cost for the advanced intercrossed synergism thrust system. It is so successful that Mazda besides has engaged in a licensing understanding with Toyota for the procurance of the said engineering ( Doggett, 2010 ) . Therefore, it is profitable and applicable for Toyota to concentrate on more licensing attempt as its entry manner scheme in the hereafter.

3.3 Wholly owned subordinates

The term entirely owned subordinates is used when a parent company who owns 100 per centum of a entirely owned subordinate, which normally operates independently with its ain senior direction construction, merchandises and clients ( Basu, Chirantan, 2012 ) . Since Toyota has a stable fiscal place and strong trade name image, it should put to death entirely owned subordinates schemes when it is spread outing the concern into foreign market.

Under entirely owned subordinates, Toyota merely requires a simplified fiscal study and this enable it to command its ain fiscal beginnings ( Basu, Chirantan, 2012 ) . When Toyota is opening a new sub-market by utilizing entirely owned subordinates scheme, it will increase Toyota ‘s parent company fiscal strength ( Miller, 2012 ) . In add-on, the excess net income earns by Toyota will enable it to put in others concern countries to bring forth more grosss ( Basu, Chirantan, 2012 ) . For illustration, Toyota is able to use the net income earned from more profitable parts to escalate its selling attempt in more competitory or less profitable parts.

Besides, Toyota will get the capableness to command its direction and operation section by direct or indirect methods. Under direct method, Toyota can direct its ain staffs to foreign states to run their concern whereas under indirect method it can engage local expertness to help in the operation and direction of its subordinates ( Basu, Chirantan, 2012 ) . Toyota can besides utilize the combined size of its subordinates to accomplish better dialogue with its providers. Besides, it can ease cognition transportation between its parent company subordinates to accomplish better direction and proficient efficiency every bit good as cut down the opportunity for jobs to happen.

This entry manner is recommended for Toyota as it already owns a successful subordinate called Lexus. It is presently an independent division of Toyota which specialized in the designing and fabrication of its ain vehicles. It portions some platforms and technology resources with Toyota ( Beyman, 2012 ) . Hence, by concentrating on this entry manner Toyota will be able to get more entirely owned subordinates which will benefits Toyota in the long term, every bit good as on the international market.

4.0 Decision

As decision Toyota have tried so much in the facet of its stratrgy to assail the planetary market, but its scheme still got a batch of infinite for betterment. Toyota could better its scheme as respect the monetary value. Toyota promoted same merchandises to a certain part, but there are immense differences as respect the monetary value. Just take Ireland and Germany as an illustration that are in the same part and but somehow the Toyota Yaris is less expensive in Germany. The differences of the monetary value is because Germany is one of the most fast developed states in the European Union and the universe, and people at that part have more higher disbursement power. Ireland has presently known as an economic crisis, and consumers do non hold the same disbursement power as German people.

The same study can be made as respect South Africa and it is even more indicative. The Toyota Yaris charge more than 6000 euro in Germany, it is unaffordable to those people in South Africa and Toyota is seeking to make a “ flush ” minority to buy its autos. As a decision, Toyota has implemented good scheme that are plants, their merchandises are being localisation based on the local demand, and the monetary values are merely got a spot differences because it adapted to each parts, These differences are North American non ever can be understand. Toyota could better its scheme by being localized their merchandise that adapted to the local demand and work hard on that to stay as the leader trade name within the automotive industry and increase its gross revenues around the universe.

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