Strategic Management Essay

Category: Administration,
Published: 22.10.2019 | Words: 1061 | Views: 444
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Toyota Motor Organization is a well-known Japanese multinational corporation, and is also considered the world’s second largest automaker of automobiles, vehicles, buses, automated programs, and offering financial services. When Toyota and other Japanese carmakers entered the American industry, they were not considered as a threat for the American vehicle industry because it was thought their vehicles had simply no appeal to American buyers However , in the 1970s, due to many problems just like environmental polices, and top quality control issues with American autos, a good number of American car owners began looking for alternatives to poorly produced American cars.

In response to these changes, Toyota and other Japan carmakers aggressively marketed their cars to Americans to be fuel-efficient, green, and having better quality than American cars. Additionally , Toyota advertised their autos with advertisements involving young Toyota motorists jumping in air. As a result, the Japanese’s marketing campaign along with continuing challenges from the Big Three automobile manufacturers, allowed import autos to make up about 20% of the ALL OF US car industry by 80. Stage1.

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Standard Motors, Ford and Daimler-Chrysler focused in the late 1990s in mergers and acquisitions for improving their business positions to meet foreseeable future challenges. Toyota, meanwhile, focused its business strategy about technological innovation and chronic environmental application. The price of olive oil was not especially high during the 1990s once Toyota started out its cross types car program.

Oil prices were under US 20 dollars barrel in 1994 and were to land to a 50-year low about 1997 when the Toyota Prius was first bought from Japan. Clearly something else was driving Toyota and other Japanese companies to take a position so seriously in hybrid car creation. There are 3 probable causes: 1 . Substantial petrol taxation in The japanese, due to the Japanese government planning to reduce the dependence of The japanese on imported oil.

When this would possess certainly motivated the Japanese advancement hybrid cars, petrol was cheap inside the key US market at this point. 2) The to gain a market advantage by simply developing the main element technologies required to successfully commercialize hybrid vehicles, and then owning these innovations via us patents. 3) The expectation that ownership of these key energy savings solutions would turn into very useful when globe oil rates rise through the lows from the mid-1990s, that was a fair long-term assumption to make during this period.

Stage2: Decision Making Procedure: In year 1994, the exec team known the potential risk of depleting oil supplies and local climate change and alter their strategy or goods to meet the needs of future buyers. Course of Action: Toyota set up a bunch tasked with meeting the challenge of creating a car or truck for the 21st century, which will would work within the parameters of natural resource constraints and environmental issues. Commitment to course of action: Toyota pioneered the idea of Hybrid (petrol/electric) technology to mass develop the world’s first eco-efficient vehicle, the Toyota Prius. Evaluation of decision/re-engineering: The first prototype of the car had possibly faced starting problem.

It took almost six months to spin the car. Finally, when the car started, that moved for a couple of yards simply. It was hard to imagine that Toyota, which was known for their efficient development systems, was facing this sort of trouble.

In the beginning it felt that ‘Prius’ was a circumstance of technological problems, impossible demands and multiple miscalculations. It proven how a superb company may overcome obstructions and turn ideal into reality. Though ‘Prius’ represented only a small fraction of the nine , 000, 000 cars and trucks the Japanese business planned to generate in 2006, it could be the initially vehicle to provide a serious replacement for internal burning engines, made for a world of scarce petrol and was branded since ‘The car for the future’.

Stage3: Toyota carefully studied america market and sees there is also a growing oil crisis and foresees a need for change in the composition for vehicles, converting their needs to oil saving cars. While American car companies lacked making such cars, then Toyota caught that opportunity and tried to occupy this niche market. By 2002, it was being sold in United states, Japan, The european union, Hong Kong, Down under and Singapore.

Analysts opined that the demand for hybrid vehicles would surge because of the shaky oil rates and the developing need for environment-friendly products. Content Evaluation Simply by examining the external environment and recognizing the potential dangers of depleting resources and increased concern over environmental issues, Toyota have turned a threat into a online business opportunity, boosting their reputation both as an environmentally conscious and as technological innovators and established themselves as leaders with this growing market. The car industry faces many complex problems, but the advantages of the Prius provided Toyota with a competitive advantage. RoadMap to the expansion Process of Toyota Prius.

Stage1| Stage2| Stage3| Executive level| 1 Expressed concern regarding the future of the automobile2. Embarked a new project called G21 to the team3. Communicated the vision and priorities for the team| 1 ) The exec team recognized the potential threat of using up oil2. Challenged the team for the development of new unit using new technology| 1 . Toyota revealed the Prius in The japanese in August 1997, 8 weeks ahead of plan. 2 . Made strategy strategies for bringing out cars to US and also other prospective continents| Management and Team level| 1 . Involved in improving the present internal burning engine technology2.

Started making refinements to the existing technology | 1 . Staff committed to the course of action applying hybrid technology. 2 . Created around 70 alternatives. 3. Identified several problems — heat, trustworthiness, noise, and cost. 5. Narrowed the list to 4 models. five.

After unlimited fussing and tweaking, the team finally come to 66 miles-per-gallon — the 100% mileage improvement. | 1 . Group has started adding efforts towards with second and third generation Prius. 2 . Remodeled the unit for making this more appealing for the consumers. | Marketing /Sales Team| 1 . Identification of the growing oil prices. 2 . Identification of Growing middle class around the world. | 1 ) Raised the concern that High grade price intended for the cross would make it impossible to trade. 2 . Challenged with building consumer technology awareness. | 1 . Devised new promoting ways to cut down dealership costs in US.

2 . Devised new ways to increase the revenue through internet, relied upon grass-roots advertising, and public relations events|.