TOYOTA INDUSTRY
Introduction
Toyota Corporation was established in 1933 as a branch of Toyoda Automatic Loom Works that was committed to the manufacturing of cars. The company was founded by a Japanese producer Toyoda Sakichi. It released its first production vehicle in 1936 called the Model AA sedan. The founder Toyoda Sakichi had his five core principles that led to the success of Toyota in its early times of production. The laws stated to be always practical and avert idleness. To continually strive to create a friendly and warm environment at work. To regularly be truthful in their duties, thus strengthening the company and the general good. To always be creative and scholarly and attempting to be ahead of the times. To continually be respectful of spiritual issues, and learn to be grateful forever. The company’s efforts in car manufacturing have made it the world’s leading producer of hybrid cars, and the largest car manufacturer company globally.
The company displays its reports, forms, plans, and assertions of its business activities, performances, goals, and annual report. It may include the intended number of cars to be produced in a particular year, the profit and losses made annually, or its business collaborations with other corporations (Imai, 2017). Many of Toyota’s filings entail its efforts to improve the company’s car production model in terms of appearance, environmentally friendly cars by producing hybrid vehicles. It also includes a privacy notice for both the company and its customers. The customer’s privacy notice always states the company’s concerns on the comments and reviews of the customers. Also, it entails how to protect the customer’s data and private information, when on Toyota’s website, from being accessed by cyber terrorists. Moreover, Toyota’s report entails its vision, mission, and achievements (Mehri, 2018). It also includes its relations with the immediate society and the county at large through its contributions to research, employment, and financial assistance to small companies.
Excessive development of weather globally is bringing about the devastation in the society, which has led to the formation of global warming. In case measures are not put on adequately, severe harm will arise, and threats of global warming will cause a lot of damage to the environment. Emission of greenhouse gases like Carbon dioxide, which absorbs more atmospheric heat, has led to a change in climate and greenhouse impact. Carbon dioxide is the primary greenhouse gas emitted by motor vehicles. The basis of the production of greenhouse gases from the car has contributed to climate change. Automobiles emit other gases such as methane and nitrous oxide. Though not every car motor vehicle has the same impacts. The amount of carbon dioxide emitted by the cars is equal to the supply and nature of fuel it utilizes. The transportation sector relies on fuels that are situated from petroleum. The growing development of vehicles in Toyota Corporation has led to an improvement in the transport sector hence more fuel consumption. More cars in the transport sector have caused more greenhouse gas production to the environment.
The high number of carbon dioxide implies that the vehicle emits a more significant amount of carbon dioxide in the tailpipe, which has been stated in the Green Vehicle Guide. Pollutants from the air, which includes nitrogen oxide, volatile organic compounds, Carbon monoxide, benzene, and particulate matter are transmitted by motor vehicle to the environment. In past decades, Toyota has been experiencing lots of environmental disasters like waves from the heat as well as floods caused by global warming.
Another environmental segment that Toyota Company faces is the challenges in reducing and optimizing wastage of water. World predictions state that growing population globally in the future will lead to more need for water usage, hence due to water challenges in the transport sector, there will be shortages of water. i has resulted in the reduction of waterIThence impacting the environment of water. Problems of water, which include an increase in population due to water intensity rise, are the vital issues in the corporation activities. Also, strict rules which respond to water degradation in water sources, as well as rivers, have posed more problems in the industrial sectors around and the Toyota Corporation at large.
The Toyota Company encounters essential impacts of the external aspects of its business surrounding. These external aspects apply force on Toyota and alter its critical course. Despite the challenges and concerns, Toyota prevails as one of the utmost worldwide automotive corporations. Concerning the effects of competition, Toyota’s most important worries are the bargaining power of its customers and competition from other automotive industries. The first significant force is a competitive rivalry. Toyota Company must handle the powerful effect of competing. Energy influences how companies affect each other.
Regarding Toyota, the external aspects that contribute to the strong force of competing for rivalry in the industry surrounding include big aggressive companies, broad array and distinction of firms, and the smallest big companies. Factors like marketing and innovation make automotive industries aggressive towards each other. Toyota competes with a vast array of companies, which vary through fuel effectiveness, style, value, and label image. Toyota has the benefit of comprehensive products and new designs of products in the company, which is hard to beat in the global market. For Toyota to maintain its competitive advantage over its rivals, it should have a definite aim in researching and development to better its innovation. Toyota should also produce a recognizable and valuable brand of automotive.it will increase its attraction in the market.
Another vital force to Toyota Company is the bargaining ability of the buyers. Several outside factors contribute to the durable power of the customers in the automotive business (Pisano, 2015). It includes the minimum cost of switching, the high value of information, and fair available substitute. The low cost of switching means that buyers can move to other competitive firms from Toyota at no charge. Toyota’s buyers can freely choose their suitable option due to their access to information from the website. For Toyota to maintain its bargaining force of its customers, it needs to guarantee that its products equal the expectations and choices of its buyers. Thus, if they are to increase the price of one type, they should also decrease the rate of the other kind so that its customers can find an alternative vehicle to buy.
Toyota Corporation has managed to address external and internal strategies affecting the company. The corporation framework has pointed out the main substantial threat, opportunities, and weaknesses that the company should discuss by the use of its strengths (Li, 2018). Toyota is the leading automotive industry in the world; it has adequately aired out such aspects. Advantages of Toyota Corporation has indicated that the industry can maintain its stands as the leading auto operators universally. Toyota contains the most strong brands in the universal industries dealing with auto vehicles. The whole supply chain in the Corporation is the greatest strength, has enabled flexibility as well as the reduction of risks in the market. Also, Toyota contains a business culture that promotes quick modernization, which is essential for an advantage in the competition for a long time. The major weakness experienced by Toyota is the universal stratified structure in the organization, which has prevented maximum resilience in the provincial movement (Moritaa, and Moritab, 2015). The secrecy of the business culture is a weakness that has reduced time response when rising problems are addressed. To mitigate its vulnerabilities, Toyota should adjust their business culture as well as structure.
Opportunities experienced by Toyota are majorly based on trends of the economy and technology. The most critical opportunities Toyota has been improving marketing, which aids in increasing revenue through penetrating business more. The patterns of growing needs recently, advancing modern electronics, and interest in more productivity in fueling will help Toyota to direct its innovation is such a course. Toyota should affirm change as well as an inversion in the market, which helps in the exploitation of opportunities. Threats to the organization to Toyota is majorly based on landscape competition. Toyota is facing threats in the game, which entails automobiles with low prices from nations like manufacturers from India, Korea, and China, which has increased its existence in external markets. Toyota is also facing threats in quick competitor’s innovations such as Honda, Ford, and GM. Toyota will be able to manage such risks by ensuring an advantage in the competition, for example, through modernization (Jothi and Kalaivani, 2015). The organization may add more adjustments in design as well as practices to increase their efficiency in solving problems and decision making.
The Toyota Corporation has had several resources that have led to its success in the automotive industry. The company has financial resources that have been marked by revenues and profit growth. The human resources of the company are the employees who are accountable for implementing the approaches of the company. It also has other supplies like goodwill, distinctive capabilities, and intellectual assets that include the brand. Toyota has several abilities, which include having a recognized and credible brand; it has an outstanding reputation and artistic workforce. Also, Toyota has a wide variety of cars with various features and price ranges in its products. Toyota can manufacture cars at acceptable prices. Toyota’s main competency has been the capacity to develop automobiles with exceptional quality. It has been because of its artistic manufacture ways and techniques.
Conclusion
The cooperation, resources, and team power of the Toyota Company have been the core of its success in the automobile industry for a long time. Its ability to strategize on forces of competition has made it have an advantage over all its rivals in the global market.
Reference
Imai, N. (2017). Toyota Production System for Business Process Management. Holistic Business Process Management: Theory And Practice, 14, 57.
Jothi, K., & Kalaivani, P. (2015). A Study on Financial Performance of Honda and Toyota Automobile Company A Comparative Analysis. Journal of Progressive Research in Social Sciences, 2(1), 33-35.
Li, Z. (2018). Business Network Positioning Analysis of Toyota. American Journal of Industrial and Business Management, 8(07), 1693.
Mehri, D. (2018). Notes from Toyota-land: an American engineer in Japan. Cornell University Press.
Moritaa, M., & Moritab, S. (2015). Karakuri Ningyo Dolls and Toyota Commemorative Museum as Resources of Industrial Tourism. Sociology, 5(9), 728-736.
Pisano, G. P. (2015). A normative theory of dynamic capabilities: connecting strategy, know-how, and competition. Harvard Business School Technology & Operations Mgt. Unit Working Paper (16-036).