Running head: Toyotas Global Marketing Toyotas Global Strategy

Toyotas goal is keeping their position of worlds number-one carmaker and getting more market share in the world auto market. It is planning to launch ten new car types by 2010. Doing this can help company output vehicles more than 10 million.

In 2002, Toyota Company set up their new global strategy called 2010 Global Vision. This aim is to achieve 15% market share of the global automobile market by 2010, in order to reach this goal, the main content of the Vision focus on two components, one is the further improving the information and production system, and another is research and development motorization based on a global sale. In the same time, there are also the two of three core competences (advanced technologies, new product system based on informatization, human resources management) for Toyota Company in global market.

The Strategy in Global Market Developing new technologies is one of the specific strategies of Toyota Company for obtaining more market share in global automobile market. Toyota has a department called R&D, the main aim is to develop new models and product eco-friendly vehicles and using cutting-edge technologies to attract consumers' eye. The hybrid technology is one of important technology for product hybrid vehicles, it greener than traditional cars and less release of exhaust so that these types vehicles can protect environment. The safety technology systems such as Brake Assist and
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Running head: Toyotas Global Marketing

ABS are now used in Toyota products in order to improving the safety of automobiles. These techniques improve the Toyotas sales in the world market and makes Toyota to be the world's largest locomotive sales company in 2008(Richard, 2009). Improving information and production system at any time is another specific strategy of Toyota Company. Kaizen is an unceasing improvement system. Toyota continuous pay attention to its business processes in order eliminating waste. For example, for do not waste time, workers can get tools at an assembly station instead of walking to get tools. Or allowing agent exchange vehicle inventories using the Dealer Daily, so that customers can get their cars do not waiting so much time (Abilla, 2006). Also, Toyota has a top information system work closely with their suppliers, the aim is to ensure parts arriving Just-in-time. For instance, when a car produce completed from a factory, the system send a message to seat suppliers, the seat will be installed in four hours and comply with the requirements. Genchi Genbutsu means Go and see for yourself. Toyota Company request their workers, section chief and executive director down to certain factory sections to find problem and solve it together. Over the year, at least 50% workers of Toyotas information systems are stationed at plant sites to work directly with operations (Abilla, 2006).

Reasons for the Strategy With the fast development of global economy, the automobile industry takes on flourishing trend. However, the some of the environmental problem also been
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Running head: Toyotas Global Marketing

appeared. Many developed countries over the last three years in response to rising awareness about global warming, higher fuel costs and vehicle emissions. For instance, UK government spends the 25million pounds in 2009 to reduce the emissions and allow general public to participate the trying of electric vehicles (Jha, 2009). The environment problem is taken seriously more and more by nations and individuals. Also, Toyota has many competitors among the automotive market in the world, such as General Motor. Development and innovation is the base of an enterprise. Any production should adapt to the market and to consider the consumer demand. For this reason, developing new technologies including environmental protection and energy saving, improving information and production technologies including ensuring the quality are the most important things for Toyota Company.

Using these strategies make Toyota Company get more profit from world market. Financial results (Sep 30, 2010) shows that net revenues for the first half of the fiscal year totaled 9,678.4 billion yen, an increase of 15.5 percent compared to the same period last fiscal year. Operating income increased by 460.0billion yen and vehicle sales for the first half totaled 3,715 thousand units, an increase of 585 thousand units compared to the same period last fiscal year (Annual Reports, 2010).

Country Analysis After the establishment of the People's Republic of China, through designedly develop economic construction, China has become the world's most potential
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Running head: Toyotas Global Marketing

economic power country, the people's life is also become well-off. From 1953 to 2000, China has continued to finish nine "five-year plan", and have made remarkable achievements for the development of national economy. And since 1979 of reform and opening up, the Chinese economy has an unprecedented fast growth. Enter the 21st century, China has become the world's one of the fastest economy growing country and continues to keep on steady growth. The table below shows the evidence of high-speed economic development in China. Indicator in China GDP purchasing power parity GDP real growth rate GDP per capita Inflation rate 5600 6100 5.9% 6500 -0.8% 13% 9% 8.4% 2007 $ 7.42 trillion 2008 $ 8.088 trillion 2009 $ 8.767 trillion

SOURCE: CIA World Factbook 2010 These figure shows that China is an economic growth and low inflation rate country and purchasing power are constantly increasing. Also, China has largest population in the world. In 2009, the labor force reached 812.7million which is the number one position in the world. At the same time, the GDP (composition by sector) 2009 shows that industry occupy 48.6%, followed by service 40.5% and 10.9% in agriculture (theodora, 2010). It indicates that China put the industry development in the first place at present. These data and policy have laid a good foundation for Toyota
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Running head: Toyotas Global Marketing entered Chinese auto market.

Toyota expansion strategy in China Toyota is one of the international brands and one of the earliest Companies enters China vehicle market. However, because its strategic shift to Europe market and others factors, finally making German VW and the American General Motor quickly became the most popular in China. For this reason, Toyota adopted the three-step strategy. Firstly, it builds a local sales network and promotion of their products. Secondly, Toyota establish car Accessories production base. Finally, it establishes joint ventures (JVs) with local players and produce automobiles (Yan, 2004).

Toyotas has three joint ventures in China, respectively is Sichuan Toyota automobile Co.LTD in 1998, TIANJIN FAW Toyota (the main aim is build Toyota own car parts production system, and establish the marketing service system) in 2002 and Guangzhou Toyota in 2004 and each has 50% shares. Their located positions covers the northsouth and west of China. After established joint ventures, Toyota separated their business completely. Using divide and rule strategy makes them forming competition to some extent. Doing this can get more chips from each of them and finally come together into Toyotas hand.

Toyota Focus on Inbound logistics

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Running head: Toyotas Global Marketing

Toyota Company purchase of raw materials from all over the world and maintain good relationship with their suppliers all the time. In the product process, Toyota use JIT (Just-in-time) approach for handling of raw material in order to reduce the waste.

Running head: Toyotas Global Marketing Reference: Toyota in Europe, Tadashi Arashima (2006) Retrieved from http://www.toyota.co.uk/bv/1024downloads/ToyotainEurope.pdf Toyota adopting three-stage plan, Jiang Yan (2004) Retrieved from

http://www.chinadaily.com.cn/english/doc/2004-10/22/content_384782.htm Toyota annual report, 2010Retrieved from http://www.toyota-global.com/investors/ir_library/annual/pdf/2010/