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Managing Innovation

Table of Contents 1 Introduction3 2 History.3 3 Toyota in the next 10 years4 4 Conclusion...5 5 References...6

1. Introduction The year 2008 witnessed the long-cherished dream-fulfillment of one of the more reliable car manufacturers around - Toyota, as it became the coveted numero uno car manufacturer in the world. On their way to the zenith, they left behind the ailing legend, General Motors Corporation, an icon in itself and the unquestioned leader for more than seventy years, by approximately 6,00,000 units (Korzeniewski, 2009). The long journey beginning in 1937 with the establishment of Toyota Motor Corporation till the production of the 2 millionth Prius hybrid (Toyota, 2011), is a pure reflection of the Japanese philosophies of wisdom, learning and honor. 2. History Toyota has its humble beginning in 1937 in the hands of founder Sakichi Toyoda, who sold the patent rights of his automatic loom to a British concern to form Toyota Motor Company. Already in 1935 it had created A1 prototype passenger car and G1 truck, followed by Model AA Sedan in 36, further followed by the first export of a Toyota car (G1 truck) and production of GB truck(Toyota, 2011). Kiichiro, Sakichis son had been bestowed with the car operations and Toyotas early success came with building trucks and buses. In 1953 Toyopet, the first genuinely popular Toyota car was produced. In addition to it, Land Cruiser (civilian truck) was being produced. In 1955, Toyota announced its first luxury car, the Toyopet Crown followed by Corona. 1957 saw the first export of a Toyota car (Crown) to the US, followed by the first Americanized Toyota (Corona) in 1964. The company was slowly gaining both in sales and confidence and from being an obscure car manufacturer; it had went on challenge Ford for the no. 2

position. Then came Corolla, Camry and then in 89 came the first Lexus with Scion in 99 and then the hybrids followed by its rise to the no. 1 car manufacturer spot. The company keeps on moving from strength to strength in its perpetual search for perfection (Toyoland, 2011).

3. Toyota in the next 10 years In a memo named Toyota Global vision 2020 the company described how it looked at the future with confidence, maintaining a harmonious balance between Monozukuri or manufacturing and nature. It goes on to say how tomorrows frontiers would open up by meshing the energy of the people and technology, while it goes in pursuit of higher ideas (Toyota Global Vision 2020-Company Outline, 2008). That is the true essence of Toyota. True, it had had its feathers ruffled by the setback caused by more than 8 million car recalls, which had surely damaged Toyotas credibility, but still the experts said that Toyotas reputation as a brand, quality and environmental leader would remain unscathed(Makower, 2010). Speaking in congruency with their global vision, Bob Carter, Toyota Group Vice-President for US Sales, had said that they wanted their hybrids to be the best-selling cars in the US by 2020 (Ohnsman, 2011), as they would be bringing in addition to their hybrid lineup, as well as hybrid version of all of their popular models (Lyon, 2010). Instead of being taken aback by an unanticipated disaster, Toyota evidently, is prowling for the market harder than ever. It has planned to produce one million hybrids in 2011 (Niedermeyer,2010), while at the same time working slowly but gradually towards changing its positioning into more that of a fun and cool car brand, which would be appealing to both parents and children, with its new Highlander 2011(Toyota

Motor, 2011). As its strategy to enter the new growth markets, especially the BRIC (Brazil, Russia, India, China) nations, Toyota is designing new cars meant to meet their distinctive requirements. A new model called Etios, planned for first launch in India and then the other BRIC nations, caused sensation with heavy pre-orders in the Indian market (Schmitt, 2010). So, Toyota has its eyes set in the proper direction, as these new, upcoming and growing markets would be the future profit centers. As with every great company, Toyotas vision for the future is strikingly simple, environment-friendly and yet intensely profound.

4. Conclusion Toyota, the benign world leader in car manufacturing, dreams of a greener future, aiming to be the the most-admired in town (Toyota Global Vision 2020-Company Outline, 2008) and is working its way bravely towards the goal. Its rise from the dust to become the most admired brand is exemplary, phenomenal and worth the highest praise.

References: Korzeniewski, Jeremy (2009, January 21), No Dispute: Toyota displaces GM as world's largest automaker, CNN, retrieved from http://www.autoblog.com/2009/01/21/toyotafinally-displaces-gm-as-worlds-largest-automaker , on January 8, 2011. Lyon, Peter (2010, February), Toyota's Five Year Future Car Plan, Motor Trend , retrieved from http://www.motortrend.com/future/future_vehicles/112_1002_toyota_future_car_pla n/index.html , on January 8, 2011.

Makower, Joel (2010, February 16), Toyota and the Future of Green Marketing retrieved from http://www.greenbiz.com/blog/2010/02/16/toyota-and-future-greenmarketing , on January 8, 2011.

Niedermeyer, Edward (2010, January 18), Toyota plans to produce 1 Million Hybrids in 2011, but what about the quality?, retrieved from http://www.thetruthaboutcars.com/2010/01/toyota-plans-to-produce-1-million-hybrids-in2011-but-what-about-the-quality , on January 8, 2011. Ohnsman, Alan (2011, January 4), Toyota Aims for Prius Hybrid to become Top Seller in US Markey by 2020, Bloomberg, retrieved from http://www.bloomberg.com/news/2011-01-04/toyota-aims-for-prius-hybrid-tobecome-u-s-top-seller-by-2020.html , on January 8, 2011.

Schmitt, Bertel (2010, December 15), Review and Talk with the Head Engineer: Toyota Etios, BRIC Spec, retrieved from The Truth About Cars http://www.thetruthaboutcars.com/2010/12/review-and-talk-with-the-head-engineertoyota-etios-bric-spec , on January 8, 2011.

Toyota Motor Corporation (2008), Toyota Global Vision 2020-Company Outline, Toyota in the World 2008, retrieved from http://www.toyota.co.jp/en/about_toyota/in_the_world/pdf2008/02toyota_global.pdf on January 8, 2011.

Toyota Motor Corporation (2011), History of Toyota, retrieved from https://www.toyota-global.com/company/history_of_toyota on January 8, 2011.

Toyota Motor Sales USA (2011), Toyota Announces Marketing Campaign for New 2011 Highlander, Toyota USA Newsroom retrieved from http://pressroom.toyota.com/pr/tms/toyota/toyota-announces-marketing-campaign177301.aspx?ncid=12071 , on January 8, 2011.

Toyoland (2011), Toyota Corporate History retrieved from http://www.toyoland.com/history.html , on January 8, 2011.