Toyota is one of the leading automobile manufacturing companies in the world. It offers a variety of product lines. Each of these product lines is aimed at different segments of the society. As a result, its market share increased much quicker as compared to other companies. However, recent issues faced by it show that the company is being plagued by various problems.
- Various reasons can be attributed to Toyota growing much bigger as compared to other car manufacturing companies. One reason is that they act according to the customer market segmentation. Each product is manufactured according to the needs of the market segment, g. Scion was manufactured with the aim of targeting teenagers. Another reason behind their growth is customization. Toyota allows customers to customize their cars according to their liking. Moreover, customer input is highly valued, and their feedback is often incorporated into the final design of the car. Furthermore, it utilizes a two-way line stretching strategy. By introducing the same product with some changes to target different income groups, Toyota can capture a more significant market share. Finally, it offers Guaranteed Auto Protection, meaning that they provide insurance for all types of automobiles. These are some of the reasons that Toyota was able to grow much larger than any of its competitors.
- In my opinion, it did the right thing by manufacturing a car brand for all segments of the society. Every single one of its product line has a strong There are cars for the super-rich as well as the relatively poor segments of society. By analyzing the needs of the customer, they can develop a quality product in the price range which is convenient for them. At a time, Toyota’s manufacturing plant can manufacture up to eight different models. It greatly increases productivity and market responsiveness. By accepting that each customer has different needs and only through fulfilling those needs, Toyota has prospered greatly. Therefore, Toyota’s choice to manufacture a car brand for everyone has been largely successful.
- Yes, Toyota did grow too quickly as suggested by Toyota Its share was 7.3% in 1995. In 2008, this had jumped to 13%. By the next 5,10 years, Toyota needs to adopt stakeholder mapping. Customers are becoming more ‘picky’ about what they buy. Many feel that they do not need to change their cars now and then. By engaging in stakeholder mapping, Toyota will be able to effectively assess the demands of its customers as well as other stakeholders. The government is a major stakeholder due to concerns about the environment. The government wants to ensure that there is minimal damage to the environment from automobiles. Toyota needs to fulfill its obligations towards the environment. Moreover, it needs to integrate ‘The Toyota Way’ in all its manufacturing plants. Only then it can ensure that the quality is not being compromised. Over the years, about 20 million cars have been recalled which shows that quality has been on the decline. To avoid quality problems, growing companies need to ensure that a uniform business model is being followed and implemented wherever they are operating. Unless a uniform system is not implemented, quality will continue to be compromised.
Despite capturing a large market share in a short span of time, Toyota has run into trouble. Recent events like recalling vehicles have hurt the reputation of the company. There should be no compromise on quality if Toyota expects to keep growing. To ensure quality, a uniform model should be adopted.