Academic Master

Business and Finance

Toyota’s broad achievements in comparison to the recent incidents that have damaged its reputation


Toyota is one of the leading automobile manufacturing companies in the world. It offers a variety of product lines, each aimed at different segments of society. As a result, its market share increased much quicker than that of other companies. However, recent issues faced by it show that the company is plagued by various problems.

Various reasons can be attributed to Toyota growing much bigger than other car manufacturing companies. One reason is that they act according to the customer market segmentation. Each product is manufactured according to the market segment’s needs, 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 car’s final design. Furthermore, it utilizes a two-way line stretching strategy. Toyota can capture a more significant market share by introducing the same product with some changes to target different income groups. Finally, it offers Guaranteed Auto Protection, meaning it provides insurance for all types of automobiles. These are some of the reasons that Toyota grew much larger than any of its competitors.

In my opinion, it did the right thing by manufacturing a car brand for all segments of society. Every single one of its product lines has a strong. There are cars for the super-rich and the relatively poor segments of society. By analyzing the needs of the customer, they can develop a quality product in the price range that 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, has Toyota 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 assess the demands of its customers and other stakeholders effectively. 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 can it ensure that the quality is not being compromised. Over the years, about 20 million cars have been recalled, showing that quality has declined. To avoid quality problems, growing companies need to ensure that a uniform business model is followed and implemented wherever they operate. 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.



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