INTRODUCTION

In this fiercely aggressive business world, the goal of most firms is to establish distinctive
or unique capabilities to gain a competitive advantage in the marketplace through utilising the
most of their core competencies. Competencies refer to the fundamental knowledge owned by
the firm (knowledge, know-how, experience, innovation and unique information), and to be
distinctive they are not confined to functional domains but cut across the firm and its
organisational boundaries. Today, business enterprises in developed countries operate in a more
complicated, and more regulated, environment. The strategic task, then, is to create a distinctive
way ahead, using whatever core competencies and resources at its disposal, against the
background and influence of the environment. Through these distinctive capabilities the
organisation seeks sustainable competitive advantage. Competition in many domestic and
international markets appears to be entering a new phase, in which product quality and
performance are becoming more important to customers than price. In such markets, the effective
management of the new product development process is the essence of competitive advantage.
Due to such changes, a review of the organisations strategic capabilities is a must if they are to
keep up with the demands of the changing times. This paper analyses the strategic capabilities of
Toyota Company in face of the ever-stiffening competition in the automotive industry, as a
potential tool to further strengthen Toyotas position in the automobile market.
 BRIEF TOYOTA BACKGROUND
Toyota Motor Corporation is a famous Japanese multinational corporation, and is
considered the worlds second largest automaker of automobiles, trucks, buses, robots, and
providing financial services. Its founder is Kiichiro Toyoda, born in 1894, and the son of Sakichi
Toyoda, who became popular as the inventor of the automatic loom. Kiichiro inherited the spirit
of research and creation from his father, and devoted his entire life to the manufacture of cars.
After many years of hard work, Kiichiro finally succeeded in his completion of the A1 prototype
vehicle in 1935, which marked the beginning of the history of the Toyota Motor Corporation.

The first Type A Engine produced in 1934 was used in the first Model A1 passenger car
in May 1935 and the G1 truck in August 1935, and led to the production of the Model AA
passenger car in 1936. In addition to being famous with its cars, it still participates in the textile
business and makes automatic looms that are now fully computerised, and electric sewing
machines that are available in different parts of the world. It has several factories around the
world, which serve to manufacture and assemble vehicles for local markets. The corporations
factories are located in countries such as the United States, Australia, Canada, Poland, France,
Czech Republic, United Kingdom, Turkey, South Africa, Brazil, Argentina, Venezuela, Mexico,
Japan, Indonesia, Pakistan, India, Mexico, Malaysia, Thailand, China, Vietnam, and the
Philippines. Despite the many locations of its factories, its headquarters is located in Toyota,
Aichi, Japan.

It invests a great deal of time and effort in its research into cleaner-burning vehicles, such
as promoting a Hybrid Synergy Drive and running a Hydrogen fuel cell in its vehicles. It has
significant market shares in developed countries, such as the United States, Europe, Africa and
Australia, and has significant markets in South East Asian countries. Its brands include the Scion,
its division in the United States, Guam and Puerto Rico, and the Lexus, which is Toyotas luxury
vehicle brand.

Aside from producing cars and other types of automobiles, such as SUVs and coasters,
Toyota also, participate in rallying or racing. The companys presence in Motorsport can be
traced to the early 1970s, when Ove Andersson, a Swedish driver, drove for Toyota during the
RAC Rally in Great Britain, and in succeeding years, Toyota Team Europe was formed. Up to
the present, Toyota cars are still being used in a variety of racing events in different countries
around the world. These events include the CART in Vancouver, the Le Mans, the Indy Racing
League, the NASCAR, and the Toyota F1 Series.

History of Toyota.
Toyota started in 1933 as a division of Toyoda Automatic Loom Works devoted to the production
of automobiles under the direction of the founder's son, Kiichiro Toyoda.[17] Its first vehicles were
the A1 passenger car and the G1 in 1935. Toyota Motor Co. was established as an independent
and separate company in 1937.

In 1934, while still a department of Toyota Industries, it created its first product Type A engine
and in 1936 its first passenger car the Toyota AA. The company was eventually founded by
Kiichiro Toyoda in 1937 as a spinoff from his father's company Toyota Industries to create
automobiles. Toyota also owns and operates Lexus and Scion brands and has a majority
shareholding stake in Daihatsu and Hino Motors, and minority shareholdings in Fuji Heavy
Industries, Isuzu Motors, and Yamaha Motors. The company includes 522 subsidiaries.

From September 1947, Toyota's small-sized vehicles were sold under the name
"Toyopet"The first vehicle sold under this name was the Toyopet SA,

However, when Toyota eventually entered the American market in 1957 with the
Crown, the name was not well received due to connotations of Toys and pets. [16] The
name was soon dropped for the American market but continued in other markets
until the mid 1960's.

Company overview
Toyota Motor Corporation (Japanese: Hepburn: Toyota
Jidsha KK , IPA: [tojota], /to t/) is a Japanese automotive manufacturer headquartered
?

in Toyota, Aichi, Japan. In March 2014, the multinational corporation consisted of 338,875
employees worldwide[4] and, as of October 2016, was the ninth-largest company in the world by
revenue. As of 2016, Toyota is the world's second-largest automotive manufacturer behind
German Volkswagen Group. Toyota was the world's first automobile manufacturer to produce more
than 10 million vehicles per year which it has done since 2012, when it also reported the production
of its 200-millionth vehicle.[6] As of July 2014, Toyota was the largest listed company in Japan
by market capitalization (worth more than twice as much as #2-ranked SoftBank)[7] and by revenue.[8]
[9]

Toyota is the world's market leader in sales of hybrid electric vehicles, and one of the largest
companies to encourage the mass-market adoption of hybrid vehicles across the globe. Cumulative
global sales of Toyota and Lexus hybrid passenger car models achieved the 10 million milestone in
January 2017. Its Prius family is the world's top selling hybrid nameplate with over 6 million units
sold worldwide as of January 2017.[10]
The company was founded by Kiichiro Toyoda in 1937, as a spinoff from his father's company Toyota
Industries to create automobiles. Three years earlier, in 1934, while still a department of Toyota
Industries, it created its first product, the Type A engine, and, in 1936, its first passenger car,
the Toyota AA. Toyota Motor Corporation produces vehicles under five brands, including the Toyota
brand, Hino, Lexus, Ranz, and Daihatsu. It also holds a 16.66% stake in Fuji Heavy Industries, a
5.9% stake in Isuzu, as well as joint-ventures with two in China (GAC Toyota and Sichuan FAW
Toyota Motor), one in India (Toyota Kirloskar), one in the Czech Republic (TPCA), along with several
"nonautomotive" companies.[11] TMC is part of the Toyota Group, one of the largest conglomerates in
the world.

The Toyota Motor Company was awarded its first Japanese Quality Control Award at
the start of the 1980s and began participating in a wide variety of Motorsports.

In 1982, the Toyota Motor Company and Toyota Motor Sales merged into one company, the
Toyota Motor Corporation. Two years later, Toyota entered into a joint venture with GM called
NUMMI, the New United Motor Manufacturing, Inc, operating an automobile manufacturing
plant in Fremont, California. The factory was an old General Motors plant that had been closed
for two years. Toyota then started to establish new brands at the end of the 1980s, with the
launch of their luxury division Lexus in 1989.

In the 1990s Toyota began to branch out from producing mostly compact cars by
adding many larger and more luxurious vehicles to its lineup, including a full sized
pickup. With over 30 million sold, the Corolla is one of the most popular and best
selling cars in the world.Toyota also began production of the world's best selling
hybrid car, the Prius, in 1997.

In 2002, Toyota managed to enter a Formula One works team and establish joint ventures with
French motoring companies Citron and Peugeot, a year after Toyota started producing cars in
France.

Toyota ranked eight on Forbes 2000 list of worlds leading companies for the year 2005. The
company was number one in global automobile sales for the first quarter of 2008.

Toyota
From Wikipedia, the free encyclopedia
Jump to: navigation, search

For other uses, see Toyota (disambiguation).

Toyota Motor Corporation

Toyota Jidosha Kabushiki-gaisha

 Type Public (TYO: 7203) & (NYSE: TM)

Founded 1937

Founder(s) Kiichiro Toyoda

Headquarte Toyota City, Japan;

rs Tokyo, Japan

Kiichiro Toyoda (Founder),

Fujio Cho (Chairman and
Representative Director),
Katsuhiro Nakagawa (Vice
chairman and Representative
Key people
Director),
Katsuaki Watanabe (President and
Representative Director),
Shoichiro Toyoda (Honorary
Chairman)[1]

Automotive

Industry Robotics Financial services

Biotechnology

Economy/mainstream/luxury
Products
vehicles

Revenue USD $203.26 billion (2009)[2]

Operating
USD $-4.56 billion (2009)[2]
income

Net income USD $-4.33 billion (2009)[2]

Total equity USD $-5.54 billion (2009)[2]

 Employees 316,121[3]

Subsidiarie
522
s

Website Toyota Worldwide

This article contains Japanese text. Without

proper rendering support, you may see question
marks, boxes, or other symbols instead of kanji and
kana.

Corporate governance[edit]

Principal headquarters building of Toyota

Toyota is headquartered in Toyota City, Aichi.[4] The main headquarters of Toyota is located in a 4-
storey building in Toyota. As of 2006, the head office has the "Toyopet" Toyota logo and the words
"Toyota Motor". The Toyota Technical Center, a 14-story building, and the Honsha plant, Toyota's
second plant engaging in mass production and formerly named the Koromo plant, are adjacent to
one another in a location near the headquarters. Vinod Jacob from The Hindu described the main
headquarters building as "modest".[12] In 2013, company head Akio Toyoda reported that it had
difficulties retaining foreign employees at the headquarters due to the lack of amenities in the city.[13]

Its Tokyo office is located in Bunkyo, Tokyo. Its Nagoya office is located in Nakamura-ku, Nagoya.
[4]
In addition to manufacturing automobiles, Toyota provides financial services through its Toyota
Financial Services division, and also builds robots.
 Akio Toyoda, CEO of Toyota, at the annual results press conference, May 11, 2011

Toyota's global network:

Red Japan
Green Official dealership(s) present.
Blue Localized manufacturing plant(s)
Cyan Regional headquarters (HQ)
Dark Blue Regional headquarters (HQ) and localized manufacturing plants

Typical breakdown of sales by region

Presidents of Toyota Motor Company:

Rizaburo Toyoda (19371941)

Kiichiro Toyoda (19411950)

Taizo Ishida (19501961)

 Fukio Nakagawa (19611967)

Eiji Toyoda (19671981)

In 1981, Toyota Motor Co., Ltd. announced plans to merge with its sales entity Toyota Motor Sales
Co., Ltd. Since 1950, the two entities had existed as separate companies as a prerequisite for
reconstruction in postwar Japan. Shoichiro Toyoda presided over Toyota Motor Sales in preparation
for the consummation of the merger that occurred in 1982. Shoichiro then succeeded his uncle Eiji
as the President of the combined organization that then became known as Toyota Motor
Corporation.

Presidents of Toyota Motor Corporation:

Eiji Toyoda (1981)

Shoichiro Toyoda (19821992)[14]

Tatsuro Toyoda (19921995)[14]

Hiroshi Okuda (19951999)

Fujio Cho (19992005)

Katsuaki Watanabe (20052009)

Akio Toyoda (2009present)

Chairmen of Toyota Motor Corporation:

Shoichiro Toyoda (19921999)

Hiroshi Okuda (19992006)

Fujio Cho (20062013)

Takeshi Uchiyamada (2013present)

On June 14, 2013, Toyota Motor Corp. announced the appointment of external board members; this
was a first for the corporation and occurred following approval from general shareholders at a
meeting on the same day. Additionally, Vice Chairman Takeshi Uchiyamada replaced Fujio Cho as
chairman, as the latter became an honorary chairman while Toyoda remains in the post of President.
[15]

Toyota is publicly traded on the Tokyo, Osaka, Nagoya, Fukuoka, and Sapporo exchanges under
company code TYO: 7203. In addition, Toyota is foreign-listed on the New York Stock
Exchange under NYSE: TM and on the London Stock Exchange under LSE: TYT. Toyota has been
publicly traded in Japan since 1949 and internationally since 1999. [16]
As reported on its consolidated financial statements, Toyota has 540 consolidated subsidiaries and
226 affiliates.

Toyota Motor North America (100% 2004)

Toyota Canada Inc. (51% 2013)

Toyota Tsusho Trading company for the Toyota Group

Daihatsu Motor Company (100%)

Hino Motors (50.1% 2001)

Lexus 100% (1989)

Scion 100% (2003)

DENSO (24.74% September 30, 2006)

Toyota Industries (23.51% March 31, 2006)

Aisin Seiki Co. (23.0% September 30, 2006)

Subaru Corporation (16.66% June 28, 2008)

Isuzu Motors (5.9% November 10, 2006)

PT Toyota Astra Motor (49% 2003)

Noble Automotive (23% 2014)

PT Toyota Motor Manufacturing Indonesia[17] (95% 2003)

Logo and branding

In 1936, Toyota entered the passenger car market with its Model AA and held a competition to
establish a new logo emphasizing speed for its new product line. After receiving 27,000 entries, one
was selected that additionally resulted in a change of its moniker to "Toyota" from the family name
"Toyoda". The new name was believed to sound better, and its eight-stroke count in the Japanese
language was associated with wealth and good fortune. The original logo is no longer found on its
vehicles but remains the corporate emblem used in Japan.
Still, no guidelines existed for the use of the brand name, so "TOYOTA", which was used throughout
most of the world, led to inconsistencies in its worldwide marketing campaigns.

To remedy this, Toyota introduced a new worldwide logo in October 1989 to commemorate the 50th
year of the company, and to differentiate it from the newly released luxury Lexus brand. The logo
made its debut on the 1989 Toyota Celsior and quickly gained worldwide recognition. The three
ovals in the new logo combine to form the letter "T", which stands for Toyota. The overlapping of the
two perpendicular ovals inside the larger oval represents the mutually beneficial relationship and
trust between the customer and the company while the larger oval surrounding both of these inner
ovals represents the "global expansion of Toyota's technology and unlimited potential for the future".

The new logo started appearing on all printed material, advertisements, dealer signage, and the
vehicles themselves in 1990.

In predominantly Chinese-speaking countries or regions using traditional Chinese characters, e.g.

Hong Kong and Taiwan, Toyota is known as "".[54] In Chinese-speaking countries using simplified
Chinese characters (e.g. China), Toyota is known as ""[55](pronounced as Fngtin in Mandarin
Chinese and Hng Tshan in Minnanese). These are the same characters as the founding family's
name "Toyoda" in Japanese.

apan[edit]

MEGAWEB, Toyota's permanent exhibition showroom and museum in Odaiba, Tokyo

Toyopet Store, Saitama

Toyota Netz Store, Tsurumi-ku, Osaka

Wikimedia Commons has

media related to Toyota
dealerships.

In Japan, Toyota currently maintains separate dealership sales channels. [56] The first sales channel
established in 1946 called "Toyota Store"[57] ( Toyota Mise) sells large luxury sedans such as
the Toyota Century, and the Toyota Crown. In 1955, the "Toyopet Store" ( Toyopetto-
ten) arrived, originally established to sell the Toyota Corona and the Toyopet ToyoAce truck.
(Toyota's five channel dealerships in Japan chronology in Japanese.) Toyota also operated a
commercial dealership called Toyota Diesel Shop ( Toyota Dzeru-ten) from
1957 until 1988 that sold various commercial platform trucks, buses, and forklifts, such as the Toyota
Dyna and the Toyota Coaster. Hino products were sold at specific Hino locations and shared at
Toyota Diesel Store locations after Toyota acquired the company in 1967. Starting in 1980, the
Diesel Shop also sold the Starlet, Corolla, Corona, Vista, and Crown installed with diesel engines.
When the Toyota Diesel Store was disbanded, commercial products were divided between Toyota
Store and Toyopet Store locations.

Currently, the "Toyota Corolla Store" ( Toyota Karra-ten) was renamed from the
"Toyota Publica Store" ( Toyota Paburika-ten), which was established to sell
the Toyota Publica in 1961, then renamed to sell the Toyota Corolla in 1966.

In 1980, the "Toyota Vista Store" replaced the "Toyota Auto Store" ( Toyota to-ten)
sales network that sold the Corolla companion, called the Toyota Sprinter established in 1967. The
"Vista" name was used on a new Camry-clone, called the Toyota Vista. The Toyota Vista network
was replaced with two networks; "Toyota NETZ" ( Nettsu-ten) in August 1998, and Lexus in
2004. Some former Vista models were rebranded as Lexus ( Rekusasu), such as the
Altezza and the Aristo, while other products have been taken over by the "Toyota NETZ", which was
already selling the Toyota ist and the Toyota RAV4. "NETZ" is an acronym for "Network of Energetic
Teams for Zenith".

NETZ locations have been repositioned to resemble the North American Toyota network,
called Scion, and sells the Toyota 86. Most models were exclusive to particular retail chains while
some models, like the Prius, are available at all sales channels.
Vehicles sold at Toyota Store (nationally)

The following is a list of all past and present models and where they were available at retail channels
nationally, as retail chains in Tokyo and Osaka are different.

Century, Crown Majesta, Crown, Master, SAI, Mirai, Prius, Aqua, Allion, Succeed, Blade, Corolla
RunX, Porte, Estima, Isis, FJ Cruiser, Comfort, Land Cruiser, Hilux Surf, Land Cruiser
Prado, Dyna, Stout, Coaster, QuickDelivery, 2000GT, Carina, Carina
ED, Brevis, Gaia, Cavalier, Classic, MasterAce, Hilux, Mega Cruiser, Soarer, Origin, Caldina.

Vehicles sold at Toyopet Store (nationally)

Mark X, SAI, Mirai, Premio, Prius, Aqua, Belta, Mark X

ZiO, Succeed, Ractis, Auris, Blade, Porte, Harrier, Vanguard, Rush, Alphard, Comfort, HiAce, ToyoA
ce, Pixis Space, Mark II-Mark II Qualis-Mark II Blit, Corona, Corona EXiV, Corona
Coupe, Corsa, Opa, Avalon, Progrs, Cami, ist, Platz, Soarer, Hilux, Cynos, Regius, Celsior, Origin,
Caldina, Ipsum.

Vehicles sold at Toyota Corolla Store (starting 1966), formerly Toyota Publica Store
(nationally)

SAI, Camry, Prius, Aqua, Corolla Axio, GT-86, Belta, Spade, Probox, Corolla
Rumion, Ractis, Passo, Corolla Verso, Sera, Vanguard, Estima, Noah, Sienta, TownAce,
all Daihatsu products, Publica, Tercel, Windom, Scepter, Corolla
Ceres, Origin, Nadia, WiLL, RAV4, Sports 800, Celica, Supra, Corolla Levin, Celica XX, Celica
Camry.

Vehicles sold at Netz Store (starting 1998), formerly Toyota Vista Store (starting 1980),
formerly Toyota Auto Store (starting 1967) (nationally)
Vitz, SAI, Prius, Aqua, ist, Auris, bB, Avensis, Raum, Spade, Wish, Voxy, RAV4, Kluger, Vellfire, iQ,
Allex, Fun Cargo, Pronard, Altezza, Verossa, Curren, Aristo, MR-
S, MR2, Starlet, Vista, Cresta, Sprinter, Voltz, Blizzard, Chaser, Sprinter
Marino, Carib, Granvia, Sprinter Trueno, LiteAce, Ipsum, GT-86, WiLL (19992004).

Company strategy
oyota's management philosophy has evolved from the company's origins and has been reflected in
the terms "Lean Manufacturing" and Just In Time Production, which it was instrumental in
developing.[63] Toyota's managerial values and business methods are known collectively as the
Toyota Way.
In April 2001, Toyota adopted the "Toyota Way 2001", an expression of values and conduct
guidelines that all Toyota employees should embrace. Under the two headings of Respect for
People and Continuous Improvement, Toyota summarizes its values and conduct guidelines with
these five principles:[64]

Challenge

Kaizen (improvement)
 Genchi genbutsu (go and see)

Respect

Teamwork
According to external observers, the Toyota Way has four components: [65]

1. Long-term thinking as a basis for management decisions

2. A process for problem-solving

3. Adding value to the organization by developing its people

4. Recognizing that continuously solving root problems drives organizational learning

The Toyota Way incorporates the Toyota Production System