Case Study on Toyota
CASE STUDY ON TOYOTA
NATURE OF THE PROBLEM
The Nature of the problem for the Toyota in Europe revolves around the repositioning of Toyota brand in Europe and increase market share of Toyota from 3% to 5% by 2005.It also include the positioning of the brand Toyota as the local brand and be more customer focused. Penetrate through the European market which is dominated by the local brands from across the Western Europe and Ford is the only other Non- European brand which made a mark on the European market.
In order to give momentum to achieve goal Toyota Company which became the world’s largest car company in the world by 1998. It issued a spending package of 16.2 billion dollars over the period of three years, to reap the economies of scale and mostly R & D and marketing functions. It also includes the capacity expansions to 1.2 million units in North America and 400,000 units in Europe.
MAJOR ISSUES
There are several others major problems faced by the Toyota company to compete with in the European market which became one of the world’s largest market for automobile in which Germany, France, Italy, U.K and Spain accounted for the 80% of the Western Europe Market. 1) Markets are Heavily Protected: The major markets of Europe are heavily protected by the governments. They prefer ‘National champions’ manufactures. Strict regulations and high import tariffs made almost impossible for not only Toyota but other Japanese manufactures to penetrate into the market. 2) Failing to adapt to the European Market : After the tough negotiation by the Japnese international trade and industry with EU and they settled for the 1.1 million/year to be imported. But still Toyota fell flat in Europe in large part by failing to adopt to local taste. 3) Treatment of European Market like U.S : Toyota in general treated European Market like American market. They did not paid e nough attention in tailoring cars specially for European market and carving out
NATURE OF THE PROBLEM
The Nature of the problem for the Toyota in Europe revolves around the repositioning of Toyota brand in Europe and increase market share of Toyota from 3% to 5% by 2005.It also include the positioning of the brand Toyota as the local brand and be more customer focused. Penetrate through the European market which is dominated by the local brands from across the Western Europe and Ford is the only other Non- European brand which made a mark on the European market.
In order to give momentum to achieve goal Toyota Company which became the world’s largest car company in the world by 1998. It issued a spending package of 16.2 billion dollars over the period of three years, to reap the economies of scale and mostly R & D and marketing functions. It also includes the capacity expansions to 1.2 million units in North America and 400,000 units in Europe.
MAJOR ISSUES
There are several others major problems faced by the Toyota company to compete with in the European market which became one of the world’s largest market for automobile in which Germany, France, Italy, U.K and Spain accounted for the 80% of the Western Europe Market. 1) Markets are Heavily Protected: The major markets of Europe are heavily protected by the governments. They prefer ‘National champions’ manufactures. Strict regulations and high import tariffs made almost impossible for not only Toyota but other Japanese manufactures to penetrate into the market. 2) Failing to adapt to the European Market : After the tough negotiation by the Japnese international trade and industry with EU and they settled for the 1.1 million/year to be imported. But still Toyota fell flat in Europe in large part by failing to adopt to local taste. 3) Treatment of European Market like U.S : Toyota in general treated European Market like American market. They did not paid e nough attention in tailoring cars specially for European market and carving out