Toyota Strategic Management Essay Example | Topics and Well Written Essays - 750 words

Toyota Strategic Management - Essay Example By delivering quality products to customers, the company is able to increase loyalty of the customers towards the brand and this is one of the reasons why the company has large number of satisfied customers around the world (Berger, 2011). Adoption of Innovative strategies and new technology Toyota focuses on innovations and bringing in new technologies to cater customers’ rising needs and to meet customers’ demands (Ghemawat, 2007). Company has analyzed the need of hybrid-cars in United States; therefore coming up with those cars was strategic choice as it has increased customer loyalty and increasing customer value. More focus on HR than before Toyota’s focus on human resource than before has achieved them to come up with more innovative products. Toyota believes in kaizen (continuous learning) has enabled its employees to be more productive than ever before. Toyota takes its employees as an ultimate source to value generation and long-term profit. The company analyzes how important the idea of career development is for employees and makes sure that employees do believe that they have a successful career at Toyota (Latham, Winters, and Locke, 1994). The company also invests in its human resource by providing different kinds of trainings to improve their productivity and this has allowed the company to achieve lower cost in comparison to competing firms like Honda. So Toyota’s more focus to HR has enabled it stay competitive for long-run Honda (Berger, 2011). Optimizing cost by kaizen (High quality with an affordable price, niche) Toyota’s decision to focus on the niche who demands for low priced quality cars and to cater the needs of this segment the Toyota team has come up with high quality automobiles with an affordable price (Steger, 2009). With the Kaizen strategy followed and implemented well at Toyota, the company has been able to manufacture automobiles at a lower cost than other firms including Honda (Berger, 2011). Firm’s decision to focus on CSR Toyota has decided to be more environmental friendly by fulfilling social corporate responsibilities which has allowed them to increase their brand’s image in the eyes of customers and other stake holders. This has helped them to increase their customer base and to meet all environmental obligations (Kotler, Wong, Saunders, and Armstrong, 2005). categorize these choices using Porter's four generic strategies Cost focus Toyota’s focus on training and development to increase skills and abilities of its employees has increased their productivity and reduced damages in the work environment which has allowed Toyota to be more cost-effective. This ensures the adoption of cost focus Porter’s generic strategy by Toyota. Differentiation strategy Toyota’s continuous research to bring in timely innovations to cater customer’s rising needs and desires has allowed them to create a point of difference among other automobile manufactures. This shows implementation of differentiation strategy to increase long-run profits. Market segmentation Toyota has adopted market segmentation strategy by segmenting its target market on the basis of customers’ needs and affordability. SWOT Perspective Well above discussed Porter’s generic strategies have enabled the company to convert its many weaknesses such as cost optimization to its biggest strength, well the above adopted strategies has allowed the Toyota to