In spite of the leading position Toyota holds in the world automotive market, the company faces a number of threats, which can undermine the development of the company and provoke fast and deep downturn in its business development. Nevertheless, the company has already proved being capable to cope with numerous threats and challenges it has already faced in the course of its development. In this regard, the company has a number of effective strategies and tool, which help the company to realize its full potential and its opportunities to maintain the leading position in the world market.
First of all, it is necessary to briefly dwell upon major threats and opportunities the company has at the moment. On analyzing threats Toyota is currently facing, it is possible to distinguish the threat of the growing competition from the part its rivals. Another threat is the customer dissatisfaction with the negative impact of Toyota cars on the environment. Finally, one of the major threats that have emerged recently is the threat of the lack of the customer confidence in safety and reliability of Toyota’s cars after the recent cars’ recall made by Toyota because of technical problems found in its vehicles.
On the other hand, the company still has a number of opportunities to hold the leading position in the market. First, the company is the leader in the industry. Second, the company focuses on the introduction of innovations, which improve the quality of its cars and attract customers because innovations distinguish Toyota’s cars from cars manufactured by other companies. In addition, the company can carry on the international market expansion due to the recognition of its brand worldwide and its leading position in the market that facilitates the new markets penetration. In such a way, the company just needs to use the full potential and all its opportunities to eliminate existing threats and minimize their negative impact on the development of the company in the future.
In this respect, it is important to focus on strategies and tools used by Toyota to eliminate threats and to realize its opportunities. First of all, the company attempts to carry on the strategy of its international market expansion. In fact, the company can benefit from its leading position in the market because it can surmount existing entering barriers to penetrate new markets and expand its market share in existing ones.
The company can increase its market share but, to meet this goal, the company should focus on the quality of its products. In this respect, the company has made a lot of efforts because the quality of its products and their permanent improvement is one of the strategic goals and a part of the company’s mission. At this point, it is worth mentioning the fact that innovations can be very helpful for Toyota because the company can introduce innovations to improve the quality of its products. In addition, the introduction of innovations put cars manufactured by Toyota in an advantageous position compared to its rivals, which fail to introduce innovations and offer customers cars, which suffer from backwardness of technologies being used compared to Toyota’s cars. In such a way, innovations are strategically important for Toyota and the company attempts to use the full potential of its innovations and its human resources to generate innovations and to introduce them in the company.
Furthermore, the company pays a lot of attention to the customer satisfaction. In this respect, it is worth mentioning the fact that the company focuses on the introduction of effective marketing strategies, which can increase the customer satisfaction. For instance, the company focuses on the development of total quality management, which contributes to the increase of the quality of cars manufactured by Toyota and quality of services being delivered to customers. The company develops the total quality management not only in relations with customers but also within the company. As a result, the company improves the quality of its products and services consistently because quality becomes a part of the organizational culture and employees working in the company are confident of the importance of the quality of their work for the company and customers.
Finally, Toyota introduces effective control systems, which minimize the risk of error and interference of humans in the control of products manufactured by the company. Effective control systems are an essential condition of delivering products of the high quality to customers that naturally contributes to the elaboration of positive public image of the company and positive attitude of customers to Toyota’s products. In addition, the company introduces mass production of hybrid vehicles to attract customers and to retain its leading position in the market.
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