Toyota

Current tagline: Touch The Perfection. At any given moment,Toyotahas had taglines on top of taglines; the car manufacturer routinely runs several different slogans at the same time and changes them a lot. A very small sampling of them (geared toward all countries) includes: Your new experience of motoring. Drive Your Dreams. The car in front is aToyota. Today TomorrowToyota. (Europe) Toyota. Moving Forward. The best built cars in the world. Get the Feeling.Toyota. Oh, what a feeling, Toyota. I love what you do for me. Toyota. You asked for it, You got it.Toyota. Abstract: Toyotas success both on the Japanese market and international market due to its desire to make products with high quality. The Japanese believe that nothing is so good that it cannot be improved, so they constantly struggle to increase the quality of everything they do. This attitude can be expressed by a single word:Kaizen. It means continuous improvement and is the key word to guide them towards perfection. This paper presents the strategies of Toyota Company in their attempt to gain supremacy in the international market. JEL classification: M16 Key words: global strategy; international markets; technological innovation; hybrid systems; kaizen 1. TOYOTA MOTOR COMPANY Toyota Motor Corporation (TMC) is a multinational company that produces cars, trucks, buses and robots, with headquarters in Toyota City, Japan. Toyota is the largest car manufacturer in Asia and second largest producer. Toyota is one of the three major Asian car manufacturers competing U.S. producers on the world market, the other two are Nissan Motors and Honda Motor. Also the company provides financial services through its subsidiary, Toyota Financial Services,

and works in other fields. Automotive products are sold under the names Toyota, Scion and Lexus. Toyota owns a majority stake in Daihatsu and Hino, and 8.7% of Fuji Heavy Industries, manufacturer of Subaru cars. In 2005, Toyota together with Daihatsu Motor Company produced 8.54 million vehicles, almost 500,000 less than General Motors in that year. In July 2006 Toyota exceeded sales of Ford cars, but the American manufacturer has regained a month later. Toyota has a significant market share in U.S., Europe and Africa and is the market leader in Australia. Toyota has factories all over the world, where produces and assembles vehicles for local markets. The company has manufacturing or assembly plants in Japan, USA, Australia, Canada, Indonesia, Poland, South Africa, Turkey, United Kingdom, France, Brazil, most recently those in Pakistan, India, Argentina, Czech Republic, Mexico, Malaysia, Thailand, China and Venezuela. The first Toyota vehicle built outside Japan was a Land Cruiser FJ-251 built in Sao Paulo, Brazil, in May of 1959. The success both on the Japanese market and international market dues to its desire to make products with a quality. The Japanese believe that nothing is so good that it can not be improved, so they constantly struggle to increase the quality of everything they do.This attitude can be expressed by a single word kaizen. It means continuous improvement and is the key word which guides them towards perfection. 2. TOYOTAS INTERNATIONAL MARKETS A. Toyotas European Market Japanese investors have turned to Europe, a market which they consider vital not only for their products, but also ambitions to become leading global player. Toyota Motor, the second global car manufacturer, was the one who initiated this trend. The auto manufactures has eight factories in the old continent, in UK, France, Poland, Turkey and the Czech Republic, with a total of 55,000 employees, including a distribution network and a research and a development center in Zavetem, Belgium. Any location it would have operations, the company brings annual profits of million euros from contracts made. It brings an important chain in research and development related to design and safety standards. In Europe in 2003, the Japanese company under three brands owned Toyota, Daihatsu and Hino, recorded a 4.4% market share. In 2004 there were 17 production units of Japanese automotive facilities in the

European Union, they produce 1.3 million vehicles and 14 research and development centers. It is estimated that these investments have created 200,000 new jobs. The European market is too important to be ignored, said the Japaneses, it is still a strong market that rivals many companies for and it has a unique industrial base. Japanese companies have started a series of investments in Russia, where domestic market is growing. In June 2005, Toyota began building a plant near St. Petersburg that will produce, starting with the 2007 Camry models. While the UK benefits from about half of total Japanese investment, Japanese companies begin to move eastward manufacturing facilities to take advantage of lower wage costs and to be closer by the more flexible markets of new EUs members, that some of them will adopt the euro in a few years. They want to consolidate their positions on the stable, secure and growing markets, but competitive, too. The European market is one of them. On the European market Toyota Motor Corporation recorded increases in sales from year to year. Its success is owing to adapt its supply to the needs and requirements of the europeans, based on total quality strategy, innovation and continuous competitive spirit. B. Toyotas US Market Business activities in U.S. of Japanese automotive and components companies are highly profitable. If in 1980 the Asian brands cars were imported 100%, in 1993, the number of factories located on American soil was 11. Descent into force of the Japanese producers in the U.S. is seen as a second Pearl Harbor. Japanese brand market share increased from 15.3% in 1999 to 20.6% in 2004 and the trend is upward, considering that in 2006 their number of plants is 23. As in Europe, the Japanese have invested heavily in U.S. production sites. GM, Ford and DaimlerChrysler companies have been overcome by the Japanese, especially because of their high adaptability, but also of the lack of a culture of domestic product among american citizens. In 2007, Toyota surpassed Ford in U.S. sales, standing on second place, after GM. At the end of 2007 Toyota manages to become a world leader in car sales surpassing giant General Motors. Japanese manufacturer has managed to manufacture and sell 9,51 million units compared with 9,26 million units sold by GM. GM leader of the auto sector for 8 decades, had to settle, this time, with the second position after Toyota. The reason that Toyota becomes the world leader was undeniable the interest that US show to the fuel-efficient vehicles which bear the unmistakable signature of Japanese.

In 2008, Toyota sold more vehicles than GM, 4.72 million vehicles for the Japanese group compared with 4.67 million vehicles of GM, the leader of the American auto industry over the past 76 years. For 2009 Toyota proposed to sell 10.4 million vehicles, a figure that would set a new record in the automotive industry, the former dating from 1978 when GM sold 9.55 million vehicles in the whole world. However, global economic crisis has hit everyone, including Toyota. The race between GM and Toyota is not only about the number of vehicles sold. In terms of profitability, GM is significantly behind those of Toyota, which also invests heavily in research and development of new models. On costs and profits of the auto industry, for each vehicle produced in North America in 2006, GM posted a profit of $ 2,123 less than Toyota did. Japanese car manufacturer is the most profitable car manufacturer in the world, its profit per vehicle increasing from U.S. $ 1.175 in 2005 to $ 1,977 in 2006. Although the European market is steady for Toyota Company, the market where they sell most Toyota cars remains the North American. C. Toyotas Australian market On the Australian market, in early 2010, the Toyota company has started production of the Toyota Camry Hybrid car. This is a model powered by electricity and gas and it will be produced around 10.000 units annually at the Altona plant in southeastern Australia. Toyota became the first manufacturer which makes mass production of cars powered by a hybrid system, starting with the Prius more than ten years ago. Toyota is counting on increasing demand for such vehicles with hybrid propulsion in terms of increasing fuel prices and the sharp rise in world temperatures. D. Other markets of Toyota Corporation Toyota made another step towards conquering global automotive market. It expands on the markets of Russia and China, the main weapons are low-cost cars. Toyotas plan is to build three new factories that produce over 450,000 units annually in order to meet market demand in India and China. Till 2010 Japanese giant plans to hold 15% of the global auto market. In 2010 Toyota plans to sell about 73 million vehicles, up 12% of sales in the last five years. Japan plans envisage the expansion on the emerging markets like Brazil, Russia, India and China. Toyota is counting on the elasticity of these markets, which, in their

opinion, is the key to success for increasing their sales significantly. The main objective is the Chinese market. China currently registered the highest rate of economic growth and the automotive segment is a very large expansion, which makes Toyota to hurry to take over the control of this market. The most spectacular evolution of the sales took place in China, the most dynamic region for Toyota in 2006. In 2008 Toyota sold in China 62% more cars than in 2006 (in 2006 the growth rate for this region was 68%). Middle East ranked second place among the regions with the largest increasing sales of Toyota cars. Toyota Motor Corp. will invest 68 billion yen (680 million dollars) in the second production plant in India. The new plant will produce the Corolla model. At the same location will be produced another new model that will be launched in 2010. It will cost around 8000 dollars and the company says that it is aimed at low-cost segment. 3. TOYOTAS STRATEGY IN INTERNATIONAL MARKETS Strategies used by Toyota in order to get success on selected markets to develop business and to impose on these markets are strategies most, created by Japanese specialists. The strategy that generally based both Toyota company and most Japanese companies is KAIZEN strategy which means continuous improvement and the impact that it has on the level of product quality. KAIZEN is an integrative strategy, which means a cross-functional strategy that appoints the gradual improvement, management and continuous business activities and the parameters of quality, productivity and competitiveness, with direct involvement of all staff. The product strategy of Toyota is based on high quality, on developing new innovative technologies, focusing on further research, creativity, but also hard work. Toyota is a world leader in research and development of advanced automotive technologies. Toyota develops intelligent responses to the challenges of the automotive industry today, while assuming responsability for future generations. Regarding the problem of pollutant emissions, Toyota explores simultaneously a variety of solutions for designing less polutting vehicles as well. Toyota has committed to develop hybrid systems as a basic factor in manufactoring clean technology cars, combining different sources of power. It has made significant progress in designing engines that use alternative energy sources. One of the most promising approach is combining two different sources of energy in a single system with the potential to use both. This solution is known as hybrid technology and is the most promising way to achieve Toyotas green machine.

Search for innovative solutions is based on new technological concepts of this company. Unconventional ideas need a way of expression, and future technologies has to be tested in terms of daily life. Therefore, Toyota develops concepts such as the Fine-N engine powered by a fuel cell or CS&S roadster powered by a Hybrid Synergy Drive system. The fabrication technology of engines is one of the most valuable property of Toyota. Toyotas performance range of engines and advanced design reflects the high standards set by engineers. Toyotas engines are designed for comfort and performance, while constantly aiming to reduce emissions and optimal fuel consumption. So, today, Toyota may offer its clients the following advantages: gasoline engines with advanced technology, variable rate control valves VV-i and VVT-i, D-4D common rail turbocharged engine - now available in D-CAT variant to equip Avensis, unique hybrid propulsion system Synergy Drive. Safety is a priority for Toyota. Advanced steering systems, brakes, suspension and traction control help keep control of the car. Each is designed with a Toyota extreme care in terms of safety, using advanced computer simulations and crash tests. Body and chassis are designed to absorb energy from impact and provide a maximum occupant protection, besides SRS (Supplementary Restraint System) airbags protection system they used. Toyota made over time many innovations and improvement in active and passive safety. From the first active suspension system in the world in 1991, to the marketing of Stability Control System Vehicle in 1995, and to the first curtain airbag launched in 1998, Toyota has aimed to improve the security and technology benefits that it offers to its clients. It can be said that Toyotas main strategy is the total control of the quality using the zero defects, continuous improvement of its products. Toyota makes independent studies on consumer needs, getting the vote of confidence on their part. Also, this is reinforced by the exceptional results of Toyota vehicles in Euro NCAP safety tests. Consumers trust Toyota cars and feel safe in their wheels.This trust is the result of the highest standards of quality which Toyota designes and produces its cars. The Japanese have turned their attention to markets with significant growth potential. In Europe car manufacturers have invested substantial amounts to build production plants, research centers and design workshops. Toyota designers from three continents are exploring ideas, visions and desires in order to design advanced machines and new technologies bringing more quality of life.

Toyota opened in 1954 in Tokyo, Japan, Head Office Technical Centre, which was the center of design activities, planning, designing, production of prototypes and evaluation of vehicles. It was responsible for all fields, including planning, designing and evaluating vehicles. In addition, the center is also in charge of security technologies, energy conservation and environmental protection. In 1973, in Newport Beach, California Toyota opend the design center Calty Design Research, Inc.. Toyota Europe Design Development is opened in 2000 and is located in Nice, France. The company created the European Laboratory for Design ED for a better understanding of local influences and preferences of current and potential clients. Here, the team has developed successful models Yaris, Corolla, Corolla Verso, Avensis and Land Cruiser. The company experts were quickly realize that local production of vehicles and exporting them to different countries is not as profitable business as their installation even in areas of marketing. Very rapid conquest of significant market share in the EU is a direct result of rapid adaptation to the specifics of each area and complying with regulations without trying to avoid or modify them (a characteristic of U.S. firms). Also, a major component in Toyotas strategy is to build more research and design centers in the proximity of production facilities. These bring specific items of the areas regarding the design and amenities. Unexpected success of the Japanese led to the exportation of vehicles produced in Europe to other markets of the world. This is the strategy that Toyota has adopted to penetrate foreign markets worldwide. Think global, act local is the slogan that guides the company on the global market. Toyota has adopted the strategy of direct investments on the growing and stable markets, as we have demonstrated, and it fully managed. 4. CONCLUSIONS Taking advantage of the opportunities of a global market, Toyota has adopted a global strategy, but considering the characteristics of markets in which it acted. The slogan think global, act local implies the need to think market and business in global terms, and in the same time to achieve adapting to the local consumerss demands. Toyotas success both on the Japanese market and international market is due to its desire to make products with high quality, always perfecting and innovating automotive technologies, creating new models, showing concern for consumption, but also for the

environment surroundings, focusing on the consumer. Thus, Toyota has committed to develop hybrid systems as a basic factor of the eco-car technology. The company set up design labs in Europe and USA for a better understanding of local influences and preferences of current and potential clients, showing care for their needs. Toyotas global strategies are considering entering the international growing market, stable, slowly and surely (the European market case). Also, Toyota took advantage of the opportunities offered by emerging countries with growing economies, lower wage costs and more flexible markets of new EUs member countries. Japan plans envisage expansion in emerging markets like Brazil, Russia, India and China. The main weapon Toyota uses in order to conquer thes markets is the low-cost cars. Even if global economic crisis has affected the entire automobile industry, affecting Toyota too, the company remains on the top of the most successful multinationals companies of the auto industry . And even though, lately, Toyota cars registered some manufacturing problems and they had to be withdrawn from the market, the company management has remained in its original principles, namely, honesty and loyalty to customer, care for his safety, asking for public apologies for shortcomings of its cars lately and promising more attention for the quality and safety of future products of their company. Adopting a global strategy based on the product policy, research and continuous quality improvement, technological innovation, but also respect for consumers around the world, they can say without any doubt that Toyota Motors Company conquered the whole world.

2013 Avalon Marketing Campaign Introduces Consumers to New Face of Toyota Radically New Avalon Signals New Direction for Toyota in America

TORRANCE, Calif. (Jan. 7, 2013) When Toyota set out to market its all-new 2013 Avalon, the automaker had to find an interesting way to showcase the vehicles modern styling, improved performance, innovation and elevated level of craftsmanship to help reposition the flagship sedan in the highly competitive premium mid-size segment. No small task. Aimed at younger baby boomers ages 40 to 60, the radically redesigned 2013 Avalon embodies Toyotas new brand direction and commitment to developing more emotionally compelling products. Extensive research revealed that younger boomers ages 40 to 60 are one of the fastest growing demographics online and regularly consume media through multi-screens. To reach this connected audience, Toyota and Saatchi & Saatchi LA created a fully integrated campaign that leverages multiple platforms and media partnerships to convey the vision behind its new design direction.

We wanted to engage with our target audience where they spend time online and on tablets through rich, interactive experiences that display the art of design, said Ed Laukes, vice president of marketing communications, Toyota Motor Sales, U.S.A., Inc. Were excited to bring a more emotionally styled design to the Avalona vehicle styled at Calty in Southern California and Michigan, engineered at Toyota Technical Center in Michigan and assembled at our manufacturing plant in Georgetown, Kentuckyand showcase it in our dynamic campaign materials. The radically new Avalon made its global debut on April 5 at the 2012 New York Auto Show. In a groundbreaking television partnership, Toyota introduced its 2013 Avalon Hybrid to the public on October 7 with a Discover Toyota showcase that aired on the HSN. Toyota was the first automaker to appear on the retail network.

Toyota partnered in October with Martha Stewart Livings American Made initiative, which included Martha Stewarts visit to the Toyota plant in Georgetown, Ky., where the Avalon is produced. The partnership also included exposure at the programs flagship event in New Yorks Grand Central Station with an Avalon on display. The partnership continues in print and online media.

The 2013 launch represents a dramatic redesign of the previous generation Avalon. The marketing campaign aims to help shift the products youthful appeal to a new audience. It is also the first major product launch under the new Toyota brand theme Lets Go Places which was announced in September 2012.

Broadcast The 2013 Avalon takes the art of making cars to new heights. Toyotas designers and engineers were inspired to draw a magic sketch that led to the creation of an extraordinary vehicle. The launch spot, Formula, is a tribute to this development process.

In the commercial, Avalon emerges dramatically out of black liquid, representing the winning formula Toyota employed to craft its next-level design. The voiceover elaborates, Lets take every drop of courage, every ounce of inspiration, every bit of determination, and go where weve never gone before. Part engineering, part alchemy, the commercial presents the radically new Avalon as a symbol for the future of Toyota.

Formula premieres on January 7 and will air on network and cable television shows such as Top Chef, Rizzoli & Isles, Royal Pains and Modern Family.

Digital Digital media elements will feature a series of Web films on YouTube and Toyota.com. Digital programs, including those in partnership with Pandora, Hulu, Trip Advisor, CNET and Food Network, will cross over all digital screensWeb, mobile and tabletto support the target audiences media behavior.

Search engine-optimized content including demo videos and still images will be enhanced to show up in a simple Google search depending on what consumers search for. Television and tablet ads will work together, with broadcast ads designed to inspire consumers to interact with content on tablet Tablet To further engage with Avalons highly-connected audience, Toyota will create branded experiences on tablet apps. The campaign content is designed to flow from TV to tablet and engage consumers in the secondscreen experience. Consumers can interact with the all-new 2013 Avalon through experiences on the Kindle Fire, iPad and iPhone platforms. Print Avalon print ads will appear in a number of print publications, including Vanity Fair, Golf Magazine, Bloomberg Business Week, Time and The Week. devices.

Consumer

Experiences

The Avalon will be included in a number of ride-and-drive experiences in the coming months that will allow consumers a chance to get behind the wheel and experience the vehicle first-hand. The vehicle will also make appearances at select Toyota-sponsored events and on-site activations.

Toyota australia Toyota is a dominant force in the Australian car market, with a market share of around 18 percent. In 2011, Toyota Australia retained its number one status selling more vehicles than any other single brand in the country. In 2011, Toyota sold 181,624 (excluding Lexus). Toyota's range covers most market sectors from family sedans to sports cars, four wheel drives to luxury vehicles and small hatches to small buses. Toyota Australia offers arguably the most comprehensive range of any car company in Australia. Toyota Australia's sales and marketing team is based in Woolooware Bay in Sydney. Over 800 employees work in our sales and marketing operating arm in areas including Marketing, Franchise Development, Domestic Sales, National Service, Operations and Logistics, Parts and Accessories and Strategic Planning, Export and Distribution.

Toyota Motor Corporation (TMC) or Toyota is the Japanese multinationalorganization and the world largest automobile manufacturers, selling 7.5 millionmodels annually on all five continents. At present, it employs 70,000 people. Likemany enterprises that have made their mark in history, Toyota has been shaped by aunique set of values and principles that have their roots in the company's formativeyears in Japan.The supply chain processes and strategies of Toyota are the fundamentals in its dailyoperations. By adhering Just-In-Time (JIT) manufacturing and Toyota ProductionSystem (TPS), Toyota emerges to be one of the world's largest automaker.The case details the globalization strategies adopted by one of the world's leadingautomobile majors, the Japan-based Toyota Motor Corporation (Toyota). It examinesthe

company's evolution from being Japan's number one automaker to a formidablecompetitor in the global automobile market by 2003. It examines the rationalebehind Toyota's decision to concentrate on global expansion and studies thecompany's various globalization programs, focusing on the localization efforts. Thecase also analyzes the problems faced by the company within Japan and discussesthe steps taken to overcome them. Finally, it examines the results of Toyota'sglobalization strategies and discusses its future prospects in the light of intensifyingcompetition and demand saturation in its core markets, Japan and the US.

FLASHBACK OF TOYOTA ) diversified from traditional family business of carpentry intohandloom machinery in 1897. Toyota Automatic Loom Works (TALW) founded in 1926 formanufacturing automatic looms. Sakichi invented a loom that stopped automatically when any of the threads snapped. This concept (designing equipment to stop so that defects could be fixedimmediately) formed the basis of the Toyota production system (TPS) and later

department within TALW and the first passenger carprototype was developed in 1935.Toyota established in 1937.Kiichiro Toyoda studied the US automotive industry during visit to Ford.

In Japan he customize theFord production system where each process in the assembly line produced only the number of parts needed at the next step on the product line. This system was named Just-in-Time (JIT)Toyota flourished during the second world war by selling truck and buses to the army. The companylaunched its first small car (SA model) in 1947. During this period Toyota went into downsizing andrestructuring the company into separate manufacturing and sales division. In 1950 Toyota Motorsales company Ltd was formed.By 1952 Toyota made a turnaround. In 1957 Toyota entered in the US market. TOYOTA PHILOSOPHY Toyota's management philosophy has evolved from the company's origins and has been reflected inthe terms "Lean Manufacturing" and Just In Time Production, which it was instrumental indeveloping.The Toyota Way has four components:1.

Long-term thinking as a basis for management decisions.2.

A process for problem-solving.3.

Adding value to the organization by developing its people.4.

Recognizing that continuously solving root problems drives organizational learning

ANALYSIS OF MARKETING OF TOYOTA Toyota manufactures cars, which has a wide coverage from economic minibus to luxurious cars,SUV. The brand on sell includes Crown, Reiz, Vios, Corolla, Coaster and Prius. And Prius is the brandor car that Toyota has made a significant success in American market. It is a hybrid vehicle.Toyota has made its way to America. In 1957, Toyota exported to America at the first time andestablished the selling company. In 1984, a joint venture was established with General motor. Co.And in 1997, Prius was first in production and had a launch in America. It was such a great successthat Toyota conquered American market.It is well known fact that American love cars so much. And due to oil crisis, Americans changed theneed structure for cars, converting their needs to oil saving cars. While American car manufactureslacked producing such cars, then Toyota caught that opportunity and tried to occupy this nichemarket.

Its market share was still below 40% in Japan despite aggressive marketing efforts.The above scenario was due to a host of reasons like

Excessive capacity

Choosy customers

Surplus workforce

Intensified competition within Japan.In 1998, Japan sales accounted for mere 38% of the

very small share of its profits.

By the late 1990s young buyers accounted for 30% of the customer base as compared toover 45% in the late 1980s. In 1998, models from rival companies such as Honda and BMWwere more popular than the ones offered by Toyota. According to reports, Japaneseyoungsters felt that Toyota cars

Toyota realized that by losing its youngcustomers to other companies, it ran the risk of losing its future market as well.Alarmed by this scenario, Toyota embarked on an aggressive restructuring exercise and started anew company, Virtual Venture Co. to design and sell cars that appealed to the young generation.VVC experimented with many unconventional sales strategies to improve the Toyota models topeople, It built a $83 million amusement park in

design their own cars.Beginning in 1999, the company rolled out many new cars specifically designed for the youngJapanese buyers. These cars such as Vitz compact, FunCargo compact, and MR-S sports car, had thedistinctive looks and attitude sought by these buyers. More significantly, a majority of these wereentry-level. To keep the prices down, Toyota shared platforms with other models.Apart from these new launches, the company also launched upgraded versions of its existingmodels such as Windom (Lexus ES 300), Verossa and Brevis. To attract the young buyers, Toyotatook the risk of even de-emphasizing the Toyota brand. For instance the new car bB, which becamevery popular with young buyers, had no

the steering wheel.As

companyrenamed one of its five dealership chains Netz, and targeted it exclusively at entry-level buyers.Toyota also undertook aggressive marketing efforts such as focused advertising of its new modelsbesides offering high cash rebates to buyers of its flagging models.Toyota focused on streamlining and reducing its workforce and decided to hire contract employeesagainst its policy of lifetime employment. It planned to cut about $678 million in costs, employmentmainly by designing cars with fewer and simpler parts and by sharing platforms and parts among itsmodels.

The factors that helped Toyota attain and sustain t he leadership status in Japan are:-

Focus on dealer network.

Initiative to improve communication with its dealers.

It took aggressive measures to attract youngsters to its products.

It stopped supplying similar models to such dealers whose outlets were located too close toeach other to avoid unnecessary price competition.

It decided to take strict stance with those dealers who failed to meet target.

The company invested heavily on advertising in fiscal in 1995. (around 200 million)

It embarked on an aggressive restructuring exercise.

forfuture models and also allowed people to design their own cars.

dealer outlets more appealing to young buyers, thecompany renamed one of its five dealership chains Netz, and targeted it exclusively at entry-level buyers.

It focused on streamlining and reducing its workforce and decided to hire contractemployees against its policy of lifetime employment.

It planned to cut about $678 million in costs.

Problems the company faced in this market later on:-The problem was drastically increasing its market share in the US, it was finding it difficult toperform well in Japan. Its market share was still below 40% in Japan despite aggressive marketingefforts. This happened because of number of reasons like:-

Excessive capacity

Choosy customers,

Surplus workforce

Intensified competitionIt is already mentioned regarding problem faced by Toyota and the strategy it adopted to come outof the problem.Over all the strategy it adopted to became leader in automobile market in Japan became the bestpractices in automobile sectors.

SPECIFIC DETAILS OF THE MAJOR AREAS ARE AS FOLLOWS:I. Advancing Localization Since the New Global Business Plan was announced in 1995, TMC's overseas production hasbeen expanding on schedule, increasing from 1.22 million units per year in 1994 to 1.54million units per year in 1998. 1. North America TMC's North American production capacity increased to 1.2 million units per year in 1998. Inaddition to expanding the existing plants, two new plants (TMMI and TMMWV) were broughtonline on schedule.In the year 2000, TMC's total North American production capacity will increase to 1.25 millionunits per year with production starting of a new SUV model at TMMI. TMC also plans toexceed the originally announced localization plan by producing additional V6 engines(summer 1999) and starting production of automatic transmissions for the Camry (spring2001), both at TMMWV.North American production results increased from about 740,000 units in 1994 to about 1.01million units in 1998.

In 1998 production at TMMK was about 480,000 units (1994 results were about290,000 units). Expansion of production capacity to 500,000 units per year has beenachieved as outlined in the plan. y

The line-off ceremony for the Tundra was held in December 1998 at TMMI. Massproduction started in February 1999 and plans call for production of 100,000units/year. Production of a new Tundra-based SUV is planned to begin in the fall of 2000. Total production capacity will reach 150,000 units. y

Assembly of Corolla engines began in November 1998 at TMMWV, with a plannedinitial production level of 300,000 units per year. Production of about 200,000 V6engines per year will begin in summer 1999. As a result, annual production capacitywill reach 500,000 units in summer 1999. Coupled with the above increases, BodineAluminum, Inc. plans to expand its production of cast aluminum parts for V6 enginesfrom the current level of 180,000 units per year to 380,000 units per year from early2000. Beginning in the spring of 2001, moreover, TMMWV will start producingautomatic transmissions for the Camry (at an annual production rate of 360,000 units). y

In 1998 actual production at TMMC in Canada was about 170,000 units (1994 resultwas about 90,000 units). Expansion of production capacity to 200,000 units per yearwas achieved in 1997. Production of the new Solara model began in June 1998. y

Total exports of vehicles from the U.S. amounted to 36,000 units. (The cumulativetotal for 1995 through 1998 was about 240,000 units.)

2. Europe

European production capacity expanded to 220,000 units by the end of 1998. Toyota MotorManufacturing (UK) Ltd. (TMUK)'s second assembly plant started building Corolla lift-backmodels in September 1998. Total European production capacity will reach 350 400,000 unitsin 2001, when the French plant goes into production.In 1998 vehicle production result at TMUK was about 170,000 units (1994 result was about90,000 units). y

In 1998 engine production at TMUK was about 110,000 units (1994 actual productionwas about 80,000 units). TMUK's engine production capacity will increase from thecurrent level of 150,000 units/year to 200,000 units/year by the end of 1999, and tobetween 350,000 and 400,000 units/year in 2001. A casting process will also be addedto the engine production process (with the start of production planned for 2000). y

The new production company, Toyota Motor Manufacturing France S.A.S., establishedin Valenciennes, France, in October 1998 is proceeding with plant construction withthe goal of starting production by early 2001 (at the rate of 150,000 units per year). y

In order to support Toyota's European manufacturing operations, Toyota MotorEurope Manufacturing (TMEM) was formed in Brussels, Belgium, in October 1998. y

In July 1998, TMC established a design center in the Cote d'Azur, France (with the startof operations planned for early 2000).

Exports of TMUK-produced cars to countries outside the EU, which began in 1996,reached about 7,000 units in 1998. (The cumulative total for 1996 through 1998 wasabout 18,000 units.) Exports of engines to Turkey reached about 8,000 units in 1998.(The cumulative total for 1996 through 1998 was 45,000 units.)