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By William Moore

Toyota is a model for defining and implementing a successful global strategy as its global expansion into the U.S. automobile manufacturing market and efficient production system prove. On the contrary to its competitors, Toyota never run for quantity, but always invested into quality, research & development, and employees’ empowerment which led to becoming the first truly “global” automobile manufacturer. Due to Toyota’s flexibility and constant improvement at all stages, its unbeatable recipe for success is a combination of production prowess and technical innovation.

During recent several years Toyota lagged behind its Japanese competitors in opening assembly plants in the U.S. and moving into China. Despite Toyota becomes a more stronger competitor to GM every year, U.S. receives new job places, thus, does not create any barriers for Toyota in its further expansion into American automobile manufacturing market. As President of the company mentioned, “Toyota wants all the cars it sells in America to be built in America”. Moreover, workers at Georgetown plant even created their own robots called AGV which decreased the expenses a lot, from $15,000 when Toyota bought robotic vehicles from the suppliers to $6,000 when Georgetown workers manufacture them by their own forces. Another advantage of Toyota is its special quite tunnel where workers make various tests on cars to check for rattles, loose parts or squeaks. In such a way, it is rather easy to notice the broken or underdeveloped parts of the cars while they are still at manufacturing process. At the same time, all Toyota employees and workers take an active part at every stage of the company activities and have high job satisfaction since their new ideas on work improvement are appreciated and taken into account in decision-making processes.

During many years Toyota’s competitors made their best to imitate design and technology they observed on Toyota’s plants, though no one was able to produce cars of the same high quality and technological innovations. In the constant competition among such automobile monsters as General Motors, Toyota, Ford, and Chrysler, Toyota never run for quantity, but always improves quality of its products and uses the latest technology to offer innovated cars to their both corporate and private customers.

Considering all those innovative and successful changes Toyota made not only in Japan, but in other countries too, one of the main important changes was to move large part of its operations into U.S. where economy is more stable than in Japan, but at the same time to remain a very Japan-centric company. By achieving the production level of 4.9 million vehicles a year in Japan, but facing economic stagnation, Toyota understood that its future depends only on the international expansion, especially to large automobile markets with promising opportunities and successful future. U.S. market is one of such promising countries where further development is possible not just for several years, but for many years ahead.

Due to the four assembly plants in North America Toyota got the opportunities to make 1.2 million vehicles only in this part of the country, not counting other plants throughout the United States. Though, company is never satisfied with the achieved results since both management and plant workers understand that only constant development, improvement and automobile innovations can lead their company to the top and provide the opportunities to hold this top position for long period of time. Thus, despite the large number of plants and offices around the world all the international activities are managed from the central office in Japan having the stable Japanese base, but flexibility and creativity based on the international experience.

Works Cited:

Naugton, Keith. “Toyota Triumphs: Toyota has become the corporate equivalent of a second-generation immigrant: fluently, aggressive American”. Newsweek International: 2007

Taylor III, Alex. “How Toyota Defies Gravity”. Fortune Magazine: December 8, 1997