Case analysis on Toyota

1. Summarize Toyotas Global Strategy in your words.

In the year 2002 annual sales of Toyota crossed 1 million unit mark. Ever since 1986
the sales and output has been constantly increasing. Toyota sets its 8 year target as
achieve global production and sales of 6 million units. Besides this they tend to
globalize their market in the world, creating regional strategies in America, Europe
and Asia such as, increase market and population growth in USA. Rise of markets in
eastern and central Europe and Russia and strong growth of Asian markets till 2010
and create global motorization.

2. Your findings on Toyotas regional strategy.

Regional strategy is divided on the bases of 4 different geographical regions i.e. North
America, Europe, overall Asian market, Chinese market, and Japanese market.
i.

North American market:

North American regional strategy is to create market through new product launches
i.e. launching new models of SVUs and other passenger cars. Since American users
like SVUs better so they launched new and luxurious models of Lexus etc. besides
this Camry and corolla were considered no.1 as passenger cars in US. Similarly they
also introduced new models of scion etc for young users. In 2002 the sales were
around 1.91 million.
Also they tend to increase the production growth centered on light truck
manufacturing. They set up production plants in Canada and many other states in
USA.

ii.

European market:
In European market strategy is to do integrated manufacturing and marketing. In 2003
they restructured their marketing organization and started production in different
European countries. In Europe the sales within 2002 reached 760,000 units.

iii.

Asian Market:
Regional strategy for Asian markets was manufacturing & export base for pickups
/multipurpose vehicles & export base for pickups /multipurpose vehicles. They

developed a global manufacturing base and a mutual distribution network. The main
manufacturing base was Thailand. Other Asian nations created engines and other
important parts.
iv.

Chinese Market:
Secondly they tried to strengthen the manufacturing and marketing in response to the
market growth by aggressively launching products. Their aim was to establish full
product line and Toyota brand image and to increase the production capacity to
several hundred units till 2010.

v.

Japanese Market:
Main regional strategy of Japanese market was the introduction of Lexus and
reorganization of sales channel. Before reorganization of this sales channel, vista and
Netz were among the top 5 brands and Lexus was not included. After reorganization
Lexus was to replace vista as new brand and vista was merged with Netz as a single
brand.