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Toyota That Toyota Has Come A Long Essay

Toyota That Toyota has come a long way is a well documented fact. Initially, the Company had a reputation as a firm that largely concerned itself with the manufacture of cheap automobile models and it was not until the 1960's that Toyota managed to shake off the cheap Japanese importer tag to a brand revered by customers across the world. In this text, I concern myself with the various strategies that Toyota has applied overtime and how these strategies have changed with the passage of time. I also bring out the fit between these strategies and the company's strengths and weaknesses in the light of the prevailing weaknesses as well as opportunities in the automobile industry.

The Strategies Toyota has Adopted over Time

Diversification is one of the strategies Toyota adopted from earlier on and indeed, this strategy has been instrumental in the company's continued success in the automobile industry. In simple terms, Witcher & Chau (2010) describe diversification as a strategy where an organization maintains active participation in several...

For seven years from 1936, the company concerned itself more with the production of the phaeton and sedan models but soon, it became apparent that diversifying production to include busses and trucks was the way to go if the company was to retain its relevance in the marketplace. Today, the company manufactures a wide range of automobiles including but of course not limited to sedans, wagons, sports utility vehicles, trucks, luxury vehicles and busses.
The other strategy that has been synonymous with the Toyota Motor Company is cost leadership. Through the minimization of wastage, the company has over time been able to keep the market prices of a majority of its brands lower that its competitors. Indeed, according to Thompson & Martin (2010), the tendency of Toyota to control its costs aggressively has made its operating profits more impressive in comparison to those of competitors.

An analysis of the company today shows that it has not significantly varied the strategies it used to…

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References

Thompson, J. & Martin, F. (2010). Strategic management, (6th Edition). Cengage Learning EMEA.

Witcher, B.J. & Chau, V.S. (2010). Strategic management: Principles and Practice. Cengage learning EMEA.
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