Business Model of Toyota :: essays research papers

Business Model of ToyotaAs one of the leading automobile manufacturers in the world, Toyota ranks within the top three worldwide. Due to their unique business place, they are now have a market share of 14% in the premier(prenominal) four months of this year. That is an astonishing 2.3% jump from the previous year. According to Autodata.com, the Toyota City based automaker ranks fourth in United States sales. We have determined that their business model is an Integrated minuscule Cost Differentiated Strategy. It involves finding the lowest operational cost along with a unique niche or system that separates them from the competition. Toyotas new statement Moving Forward, reflects their plans and expectations for the future. This includes the known and the unknown factors that a business must face. In 2000, Toyota launched a new cost effective strategy called CCC21 (Construction of Cost Competitiveness for the 21st century), for Low Cost operational expenses. With this aspect Toyot a plans to advance such initiatives globally, based on its policy of purchasing the worlds best parts at the lowest cost with the shortest lead times. According to Toyota, they have undertaken a manufacturing revolution that has fundamentally changed established practices all the way hold to the product development and design. They have done this by integrating four areas design, production engineering, procurement, and component supply. They have achieved higher quality at lower cost by creating standardized, multipurpose components. Also the reduction in cost has heightened the value and fortifies the competitiveness of product. To do this, Toyota has required intensive coordination with its suppliers. An separate factor of their Integrated Low Cost is that Toyota steadily feeds cost improvements back into the product to raise their value along with the fact that four Toyotas seven corporate auditors are extracurricular corporate auditors.Toyotas Integrated Differentiated Strate gy is very unique to the automotive industry. Its main focus, according to the president of Toyota, is that Toyota is not trying to rival other automakers Toyota is trying to conquer customers with great products and service to obtain high customer satisfaction.