Toyota Aygo

TOYOTA’S GLOBALIZATION STRATEGY

Casting a Global Spell:

Jan 2004 Toyota replaced Ford Motors as the world’s second largest automobile mfr  Ford was in that spot for 7 decades  In 2003 Toyota sold 6.78 mn vehicles world wide  Ford – 6.72mn  GM – 8.60

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Toyota’s market share in the US increased from 10.4% in 2002 to 11.2% in 2003 Ford’s declined from 21.5% to 20.8 Toyota began as a spinning and weaving company in 1918 Ford was plagued by high labor costs, lack of new designs & innovations & a weak economy which made it vulnerable to competition

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Toyota aided by its new product offerings & strong financial muscle had successfully used this to surpass Ford Toyota had emerged as a strong foreign player in : Europe China South America South West Asia South East Asia Africa

Aggressive Globalization efforts that began in mid 1990s  3 Globalization programs  New Global business plan (1955-1998)  Global vision 2005 (1996 –2005)  Global vision 2010 (2002 – 2010)

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Background Note:

1897 Japan’s Sakichi Toyoda diversified from the traditional family business of carpentry into handloom machinery  Founded Toyoda Automatic Loom Works in 1926 for mfr automatic looms  Sakichi invented a loom that stopped automatically when any of the threads snapped

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1933 established an automobile dept TALW & 1st passenger car prototype was developed in 1935 Sakichi’s son Kiichiro Toyoda convinced him to enter into automobile business and the establishment of Toyota in 1937 Kiichiro visited Ford in US US workers production was 9 times that of an Japanese worker

During the Iind world war sold buses trucks to the army  1st small car in 1947  After war they had series of financial problems  They downsized and restructured the company into separate mfr and sales division

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Toyota Motor Sales Company Ltd was formed in 1950 1952 made a turnaround and 1953 appointed distributors in El...