The overarching strategy of Toyota is skewed towards cost leadership, the strategy employed by its flagship brand which accounts for the vast majority of its sales. Cost leadership where Toyota’s competitive advantage stems from is a result of a lean manufacturing method and standardized methods and processes that save costs and increase productivity. The company’s culture is another source of competitive advantage not only maintaining cost leadership by supporting the lean manufacturing prices, but also by helping create hard innovation that has led to differentiation.
Key Highlights
- The overarching strategy of Toyota is skewed towards cost leadership, the strategy employed by its flagship brand which accounts for the vast majority of its sales. Cost leadership where Toyota’s competitive advantage stems from is a result of a lean manufacturing method and standardized methods and processes that save costs and increase productivity. The company’s culture is another source of competitive advantage not only maintaining cost leadership by supporting the lean manufacturing prices, but also by helping create hard innovation that has led to differentiation.
- The Toyota Motor company has extensive product breadth as its product lines are not limited to the manufacturing of passenger and commercial vehicles. In addition to the above, Toyota also provides mobility services, financial services, warranties, and car services to its customers. Toyota has large product depth in passenger and commercial vehicles, a reflection of the company’s mix of strategies through different brands. Notably, the company’s large product breadth also stems from a relatively high level of product customization to local markets.
- The company has adopted a mix of growth strategies, which puts more emphasis on product development, as well as market development. Electric and fuel cell vehicles, along with sales in emerging markets are the company’s top growth priorities.
Scope
- The analysis of generic strategies, product mix and growth strategies serve as essential tools to understand the key success factors of Toyota, as well as its future strategy approach.
- Brief on Toyota's generic strategies, marketing mix (through use of the 4Ps) and growth strategies.
Reasons to Buy
- What is Toyota's overarching growth strategy?
- What is Toyota's strategy regarding its product range?
- What are Toyota's main growth strategies?
Table of Contents
1. OVERVIEW
2. TOYOTA’S GENERIC STRATEGIES
3. MARKETING MIX
4. GROWTH STRATEGIES
5. APPENDIX
List of Figures
