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In its entry strategy, the company positions itself purposefully to reap from the growing world market. This could only be realised because of the global market recovery from the recent monetary and Euro zone crisis (Brenkert, 2010). Although the company strategy focused on the emerging markets, Europe and the United States basically remain the primary targeted market for Toyota products. The management of the company understands the fact that the global market will develop and that it would be necessary for the company to be innovative and develop strategic policies to remain viable in the market (Toyota, 2012). This is justifiable by the positive feedback that the product’s users have shown over a long time as well as the company strategic and development policies.
Issues that Face the Company
The major issue that faced the company is that of policy it had to implement. For instance, the company found it extremely difficult to shift its strategic policies to manufacture cars that could be affordable to the masses. This was because its strategic planning continued to focus on improving the quality of the cars, thus translating to increased cost of acquiring the cars. With the upcoming of Toyota and its cheap models, the strategy and priority of Toyota’s management will develop quality cars, which are relatively affordable to a large number of people from the UK, US, Asia and other parts of the world market (Brenkert, 2010).
Research that Needs to be Done
In order to better understand the phenomenon, a lot of research needs to be carried out. For instance, the recommended research should focus on the possibility of manufacturing more luxurious cars of premium quality at relatively lower cost to attract the prospective buyers who are only limited by their level of income (Clegg, KornBerger & Pitsis, 2005). Indeed, findings from such research would be the sure way of achieving success in the company. The other vital research should focus on how the external environment poses a great threat to the internal affairs and strategies of the company, especially this company since it engages in the car manufacturing industry. The other important research that should be carried out is to ascertain whether the management adopts competitive policies, which would help the company fight off the competition in the market (Clegg, KornBerger & Pitsis, 2005). Certainly, if those research issues are conducted and their findings implemented, it would lead to the advancement of innovative products and the use of effective marketing strategies to minimise the affects such problems may cause the company.
Research that has Already been Done in this Area
Current research findings about the company indicates that the proliferation of cheap models in the market affected the strategic operations of Toyota, yet the company still command a large number of potential high class buyers (Clegg, KornBerger & Pitsis, 2005). Ideally, the products were found to be comfortable for people in the top class, thus the company maintained this market through changing the operation strategies that allowed it to reduce their cost considerably, without affecting its profitability. Therefore, the strategic planning that the company has employed has been instrumental in maintaining the brand’s name and success around the globe (Toyota, 2012).
Size of the Company
The company is multinational with headquarter in the United States (Toyota, 2012). This indicates that it has outlets in many countries around the globe. In other countries such as South Africa, the company has become so popular due to its involvement in corporate social responsibility. For many years, since its inception, the company has witnessed tremendous growth with a sales turnover due to the demand for its brands (Toyota, 2012).
Competitors of the Organization
The major competitor of the company has been Mitsubishi. Literally, BMW and Mitsubishi exited the global market because of their cheap cars, which interfered with the internal operations of Toyota (Datamonitor, 2011). For instance, since Mitsubishi cars are cheap, they have dominated the market. However, Toyota brands are still globally recognized brands because of their high quality and unlike the Mitsubishi; the company manufactures a range of luxurious cars to suit the high class in society. The competitor forms the major part of the external environment affecting the operations in the company (Datamonitor, 2011). The environmental analysis is very critical to the company as it could lead to prosperity or affect the operations at the organisation. Obviously, the company has both internal and external environments, which interrelate to make it either fail in its objectives or be successful. For this case, the focus is on impacts of the external environment on the company strategy (Diana, 2011).
The Target Publics of the Company
In essence, Verlag (2011) asserted that the company targets middle class and low class people who are looking for cars. The strategic operations of the company has targeted European, America and Asian markets, which has become a priority for the company because of the purchasing power of people in such areas (Verlag, 2011). In addition, the company’s brand has also proliferated to the majority of people leaving in developing countries who need relatively cheaper models from the company. Although this approach important, it has threatened the strategic operations in other companies because the middle and low income population who form the majority perceive Toyota as the most affordable brand (Verlag, 2011).
Strengths and Weaknesses
Over the last several years, the main achievement is that the company has been crowned as the leader in global premium car market. Basically, it draws its strength from the revelation that the premium products will continue to stay in the global market (Audi, 2007). Second, the company has been successful in achieving its objectives by making sure that it maintains the production of high quality products such as the Toyota cars will maintain and possibly increase growth internationally (Audi, 2007). The other factor that strengthens the operations of Toyota is that it has exceeded its target by increasing rate of growth of premium cars, especially the ones of demanded in mass market. The company has various product ranges (brands) to offer its customers, thus its current services meet target audiences’ requirements. Moreover, it places special importance on technological development of the various segments such as the cars and big vehicles. The company thrives on innovation. Toyota has well-developed marketing strategies, which it uses to effectively link with other key organizations/agencies in the same area or sector (Audi, 2007). The company management is composed of a team experienced in the car manufacturing sector, thus gives hope for its development. This has made the company recognized externally, earned global reputation and it has a positive relationship with funders.
On its weakness, the prices of some brands such as Harrier and Lexus are on the higher sides, thus blocking other interested buyers living in the lower income category. The economic conditions in the Europe, America and Asia, which constitute the larges and primary market, have deteriorated in recent years due to unprecedented financial crisis. Indeed, such changes have affected the operations at the company, and have contributed to its weaknesses (Audi, 2007). The company has not been able to promote its other products other than the small cars segment, thus not been able to attract a larger market from the business communities using large tracks.
Opportunities and Threats
Trends in similar areas of the company is that the high-class population in the Europe, United States, Asian and the rest of the world, who are the target audiences are increasing, thus the company is sure to receive pressure due to probable increase demand the product in the coming years. Since the global situation of the company is driven by innovation, the use of technology in the company has also developed indicating that the company will benefit from promotion (Barney & Hesterly, 2009). The emerging world market provides a great opportunity for the company on a global platform and their target audiences’ need is purely quality. The company’s incubation of efficiency dynamics presents and opportunity for future growth (Toyota, 2012). In addition, the company has established market in many parts of the world that forms its security and opportunity for further development. Since the world grows towards low carbon dioxide cars, the company has opportunity for future growth because its cars low emission of carbon dioxide (Barney & Hesterly, 2009). Furthermore, the people always demand luxury, and since most of the company cars depict this quality, it has opportunity for further growth and development.
On potential threats, the rules and regulations of the car industry have changed, because the companies are expected to manufacture vehicles, which do no emit high amount of carbon dioxide (CO2) to the atmosphere, thus provides a challenge for the company. Second, the company has competitors in the area (Barney & Hesterly, 2009). For example, there has been a rise in regional and international competitors such as Mitsubishi, Subaru and Ford. Third, some of the potential inter-organization barriers for the company include access and the price of raw materials for manufacturing cars, which are expected to rise in the future, thus threatens the company operations (Barney & Hesterly, 2009). The other threat to the company includes the lifecycle factors, global economic downturn, international depression and financial crisis among others. Finally, the company does not have potential partnership or collaborative working opportunities with its competitors, a situation that might threaten its strength in future.