Strategy of Toyota Motor Corp.

Within that overall philosophical framework, the mission of Toyota can be characterized as becoming the world's leading vehicle manufacturer. "Leading" here should be understood as signifying not simply a transient leadership in production and sales volume, but a broader conception of Toyota as the standard-setter in the industry, setting benchmarks of product quality and production efficiency which others will seek to emulate.

Consequently, the strategy of Toyota Motor Corporation is: 1) to decrease costs while maintaining quality though increased production and operational efficiencies; and 2) to expand its global presence in manufacturing as well as sales.

However, it must be recognized that the motor vehicle industry is long-established, with major competitors having relatively well-defined positions within it. The potential for dramatic growth by any one competitor is therefore limited. Yet the fact that the auto industry is mature does not imply that it will decline in the near future; indeed, no substitute product for the automobile is now in sight.

Some implications of a mature industry are the prevalence of repeat buyers, an emphasis on cost and service, and limite

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having a general effect on most national economies and political systems; for example, the rise in xenophobia in the United States is mirrored in Western Europe. As a global corporation, Toyota must take all of these effects and interrelationships of effects into account (Womack, Jones, and Roos, 1990). Opportunities Toyota been able to recognize areas in which auto manufacturers as a whole can be improved, and has also areas which are more specific to Toyota itself. Thus, in an attempt to address such issues, Toyota has set goals for the company. The first of these goals has been pursued primarily through development of new and more efficient production methods. In the past, for example, Toyota has pioneered methods of "lean" production, such as faster and less expensive methods of substituting dies in metal-shaping machines, that have permitted it to achieve greater flexibility in assigning production runs. Toyota has also developed a method called "set-based concurrent engineering" (Toyota Motor Corp., 1994). In this method, instead of pursuing a single prototype, and refining it through successive design iterations, Toyota engineers work simultaneously on designing several prototypes, along with the production tools
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Approximate Pages = 12 (250 words per page)

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