BY:

Khalid Al-Hedary
Kahh2008@hotmail.com

Automaker Market Leader

1
 TOYOTA
Automaker Market Leader Agenda
Leader’s Profile & Facts
TOYOTO NETWORK / Distribution
Products & Services 2008
Market Share
Competitive Information
Financial Performance
Culture
Leadership
Strengths Concept
TOYOTA Production System
Innovation
Award
Offensive Strategy
Defensive Strategy
Target Customer
Is TOYOTA Market-Based?
2
 Leader’s Profile & Facts

Toyota Motors is 70-years old, established on August 28, 1937

in Japan.
Toyota became the world's largest automaker in the first half of
2008, with sales of more than 4.8 million cars and trucks,
compared with 4.54 million vehicles for General Motors Corp
TOYOTA ranked 5th of the world's largest corporations in the
2008 Fortune Global 500.
TOYOTA ranked 1st of the world's largest automaker
corporations in the 2008 Fortune Global 500
1st Overseas production starts in 1959 (Brazil)
Has 53 overseas manufacturing companies, in 27
countries/regions.
Has 168 distributors sell vehicles in more than 170
countries/regions.
3
Number of employees 316,121
TOYOTO Network / Distribution

4
TOYOTO Network / Distribution

5
 Products & Services 2008

Automobile:
Passenger Vehicles, diesel & gasoline engines, car air-
conditioning compressors, foundry parts, electronics components.

Materials handling equipment:

Counterbalanced lift trucks, warehouse trucks, automated storage
and retrieval systems, truck mount aerial work platform.

Logistics:
Transportation services, logistic planning, operating of disruption
centers, collection and delivery of cash and managements of
sales proceeds and secure storage.

Textile machinery:
Air-jet looms, water-jet looms, ring spinning frames

6
World Automobiles Market

7
 Market Share
&
Competitive Information

8
 U.S Market Share

U.S.Market Share - May-08 BMW 2.3%

GM Volksw agen
Toyota Hyundai 2.2%
5.6%
Ford Mercedes
Chrysler Nissan 7.2% 1.8%
Honda Honda 12% GM 19.3%
Nissan
Chrysler
Hyundai 10.7%
BMW Toyota
Ford 15.4%
18.4%
Volksw agen
Mercedes

9
Source http://www.usnews.com/blogs/flowchart/2008/6/9/how-toyota-could-become-the-us-sales-champ.html
 Competitive Information
Automaker
20
Profits 15

Ranking 2008 15
10 5.6 5.4 5.2
Toyota
4.3 4.2 Volkswagen
Toyota 15,042.5 B$ 5 2.8 1.7 1.2
Daimler
0
Volkswagen 5,639.3 B$ Million $ USD Honda
-5 1 -2.7
Daimler 5,446.3 B$ BMW
-10
Billion

Nissan
Honda 5,254.2 B$ -15
Fiat
BMW 4,278.8 B$ -20
Hyundai-Kia
-25
Nissan 4,222.9 B$ Peugeot
-30
Fiat 2,673.2 B$ Ford
-35 GM
Hyundai-Kia 1,722.3 B$ -40
-38.7
Peugeot 1,211.4 B$ -45

Ford -2,723.0 B$ Profits Rankings - Fortune Global 500

GM -38,732.0 B$

Source http://money.cnn.com/magazines/fortune/global500/2008/index.html 10
 TOYOTA
Financial Performance Report
2008

11
 Revenues & Expenditure

Net Revenues Capital Expenditure

300 280
18 16 16 16
255
250 16
USD

224

USD
198 14

Million USD
184 11
Million USD

200 12 10 11 10
161 165
10 9
Billion

143

Billion
150
8
100 6
4
50 2
0
0
2000 2001 2002 2003 2004 2005 2006 2007 2000 2001 2002 2003 2004 2005 2006 2007

Source http://www.toyota.co.jp/en/ir/financial_results/2008/index.html
12
TOYOTA Financial Data 2007
Source TOYOTA website

13
 CULTURE
“A culture of quality people working together with
shared Toyota Values to continues improve”
Developing and motivating their people to drive excellence throughout the
production process

Humility, because without this culture, team member will not be willing to
accept that the current way is not the best. (ego is barrier for improvement & Change)

Continues improvement through elimination of waste

Organizing all jobs around human activity in the work place, creating an
efficient sequence called standardized work

Quality is their top priority.

Work aggressively to increase quality by identifying the root causes of

defected. 14
 CULTURE
Competitiveness is not about competing with others.
It is about improving yourself

TOYOTA CULTURE

15
 LEADERSHIP

Katsuaki Watanabe Fujio Cho

President
Chairman

Since its founding, our company has been aiming to enrich society through car
making Our goal is to be a "good corporate citizen" constantly winning the
making.
trust and respect of the international community. Continuing in the 21st
century, we aim for stable long-term growth,
growth while striving for harmony with
people, society and the environment.

Under Toyota's Guiding Principles, we practice openness and fairness in our

corporate activities, strive for cleaner and safer car making, and work to
make the earth a better place to live. We would like to thank everyone for their
continuing support.
16
 Strengths Contributing to
TOYOTA Leadership
TOYOTA Production System is always improving…..
“Philosophy of complete elimination of waste”

17
 Strengths Concept

Jidoka – Highlighting of problems Just-in-Time – Productivity improvement

- Making only "what is needed, when it

- Quality must be built in during is needed, and in the amount needed!
the manufacturing process!
Producing quality products
If a defective part or efficiently through the complete
equipment malfunction is elimination of waste on the
discovered, the machine production line - In order to deliver
concerned automatically a vehicle ordered by a customer as
stops, and operators stop quickly as possible, the vehicle is
work and correct the problem. efficiently built within the shortest
possible period.
18
 TPS implementation advantages

Make what the customer needs, when it is

needed, and in the right amount
Minimize inventories
Separate machine work from human work and
fully utilize both
Build quality into the process and prevent errors
from happening
Reduce lead-times to allow for rapid, flexible
scheduling
Produce a high mix of low volume products
efficiently
19
 Innovation
Toyota has introduced new ideas & technologies which
enable them to lead the innovation among others competitors.
Example
Hybrid gas-electric vehicles.
Advanced Parking Guidance System.
Eight-speed automatic transmission.
Four-speed electronically controlled automatic with
buttons for power and economy shifting.
2005

20
 AWARDS

Toyota Prius: no.1 in J.D. Power and Associates’

customer
2008 satisfaction index study.

2008
The all-new Toyota Corolla has been awarded a
maximum five-star safety rating for adult occupant
protection in the highly regarded Euro NCAP tests
Toyota has achieved the premier position in overall
customer satisfaction for the fourth consecutive time,
2005
according to the J.D. Power and Associates Germany
Customer Satisfaction Index (CSI) Study.
21
 Offensive Strategy
Toyota aggressively marketed their cars to Americans as being fuel-
efficient, environmentally friendly, small size and having better build
quality than other Brands.

In the 1980's they had people tell the story of hitting 100,000 miles in
their Toyota while other different cars were died at 80,000 miles. Toyota
found that many of their cars were going 200,000 miles. That was a huge
marketing success and it didn't even cost much money. (Building a
Quality Brand Strategy).

Now TOYOTA team is improving by concentrating on being a "green"

company that cares about the environment.
2005
Diversity in their products which maximize market share, profitability of
the company as all the society sectors (Youth, Men/Women, rich) are
being served with products that are under their convenience. 22
 Defensive Strategy
Overseas production for reducing labor cost.

Building a Huge Dealers network overall the world, that’s made their products reachable
for all around the world.

Built the best system (TOYOTA Production system-TPS) that organizes manufacturing
and logistics for their automobile manufacturer, including interaction with suppliers and
customers. Their system has proven its effectiveness through the past and present. And
Now TPS system being studied & followed by other automakers.

After many years of the excellence, TOYOTA brand become known in selling a high
quality, low maintenance, reliable and fuel efficient vehicles with widely available spare
parts.

By the excellent reputation that TOYOTA has built through the past, their cars have got
the best resale value. This participates in “Captives Customer” and maximizes customer
retention, market share, profitability and maximize Net marketing contribution.
2005
In the past TOYOTA MOTOR COMPANY has lunched “Scion” for youth market, because
the younger customer has a greater "lifetime value" to the company. (The younger
person has more car purchases in his future than does the older one). 23
 Targeted Customers

Individuals overall the world

SCION - Youth market (16-30) College degree, median income
$30,000-$50,000 per year.
TOYOTA - Medium class (25 and up), college degree, median
income $40,000 and up
LEXUS - Toyota's luxury division (35 and up), college degree,
median income $65,000 and up.
Companies
Manufactories
Institutions
24
 Is TOYOTA Market-Based?
Yes, according to TOYOTA achievements, marketing matrix
and customer satisfaction index, TOYOTA is a Market-Based
organization.

TOYOTA are constantly in tune with

customers’ needs,
needs competitors’ strategies,
strategies
changes in the business climate, and emerging
technologies, and they seek ways to
continuously improve the solutions they bring to
target customers. This process enables them
to move with—and often lead change.
0 1 2 3 4 5 6 7 88 9 10

Our evaluation toward TOYOTA is 8 out of 10 25

26