TOYOTAS GLOBALIZATION

Introduction of Toyota
Earlier it was Toyoda, founded by Sakichi Toyoda in 1926.

Established in 1937 as Toyoda automatic looms works.

Change into Toyota Motor Corporation.

1947 first small car (SA Model), 1953 expand business in

Salvador & Soudi Arabia

1957 US Market, 1959 Brazil By 2004 51 manufacturing plants in 26 countries.

Globalization Strategies
1995 New Global Business Plan

- Localization of Production - Increasing Imports (From foreign players) Objective was to increase off shore production capacity to 2 millions by 1998. -Established new plant and - Expanding the capacity of existing plants. As a result, - in North America production increased from 400000 to 5ooooo units per annum. - In Canada increased from 100000 to 2ooooo units

Global Business vision

In 1996 Global vision 2005
- Improve the technology & accelerate globalization - Sustaining market leadership in japan - High production. -R&D activities (Lexus engines). As a results - Increased car sales in US - Pirus (Gasoline Electric Car) a mass produced car. - Yaris in Europe. - sales increased from 1.22 million to 1.54 million by 1998.

New Business vision

Globalization as Global Localization

- Focused on localized design - Sale in every regions and countries. Maintain unique corporate culture (Toyota production system) through out global plants.
As a result employees practiced,

-Kaizen (Continuous improvement) -PDCA (plan, do, check, action) -Pokayoke (Mistake proofing) -JIT

Contd
Announced the 2010 Global vision in April 2002

- Targeting to achieve 15% market share from 10% - Targeted key global markets North America, Europe, & China. - GM was in 14.2%. New vision Innovation into the future -Concentrated on accelerating Technologies - Strength its core technologies like engines and platforms. - Management restructuring. -Focusing more on truck markets in US, small cars in Europe.

Contd..
-Targeted emerging economies like China, India & African

countries
- Cost cutting by manufacturing vehicle or parts in different countries. - Launched Diesel-powered version of Yaris, Corolla & Avensis in Europe in 2002 to 2003. - Focused on SUVs, Minivans, Trucks and youth segments, sedans, luxury cars, full size pick up cars. - Productions increased by 38 times.(global 3.3)

Conclusion:
Strong financial position, globally efficient production

system, unique corporate culture and a ability to develop a product range help to achieve the goal.
But global automobile market is being saturated.

Over dependency on US market

Toyotas confidence to meet the targets by new

products, expended manufacturing base and product & quality control strategies.

Questions for discussion:

Critically examine the Toyotas globalization

efforts.
Considering the extremely competitive global

market scenario and nearly saturated demand in its core automobile markets (US & Japan), do you think Toyota will be able to achieve its goal of attaining a 15% market share by 2010.