Internationalization of Toyota Motor Co.
Group Assignment:
INTERNATIONALIZATION OF TOYOTA MOTOR CO.
Name of the students:
VIJAY CHATURVEDI, SUUNIL DABRAL, PRIYAJEET VILKU, PROMILA KAUSHIK, SUMIT MAJKHOLA, RAJ SINGH THOL
Group Number: 8
Name of the Course:
GLOBAL BUSINESS ENVIRONMENT
Assignment/Case number: 01
Faculty in charge: PROF. BIBEK RAY CHAUDHURI
INTERNATIONALIZATION OF TOYOTA MOTOR CO.
I) JAPANESE BUSINESS AND ECONOMY:
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II) TOYOTA GOES INTERNATIONAL: REASONS, JOURNEY AND BENEFITS
In 1998, Toyota, the number three carmaker in the world, sold 1,711 thousand vehicles in Japan through 309 dealers, and 2,930 thousand overseas through 170 distributors deploying about 5,400 outlets in 73 countries. So, Toyota’s sales network was already fairly globalized, the markets in the East European countries surely being fallow lands yet. As for its overseas production, Toyota had 40 companies among which 27 firms in 24 countries assembled 1,468 thousand vehicles, whereas Toyota produced in Japan 3,166 thousand of which 1,463 thousand were exported. Then, Toyota seems being on the way to globalize its production network at the end of 20th century. However,
Toyota’s globalization of production came lately.
If in general the internationalization proceeds pass through four phases: export strategy, strategic alliances and shareholding investments, foreign direct investments, and globalization, the internationalization trajectory of Toyota rather shows in its basic trend the classical process, analyzed by studies on multinational firms during the 1970s and the 1980s. The successful export strategy of the firm had encountered protectionist policies, set by the importing countries for some reasons — growing trade deficits, devastating local firms, etc. — so that it decided to produce there to avoid protectionist barriers — quota, prohibitive import taxes, etc. The fact that its overseas production essentially began to replace exports
INTERNATIONALIZATION OF TOYOTA MOTOR CO.
Name of the students:
VIJAY CHATURVEDI, SUUNIL DABRAL, PRIYAJEET VILKU, PROMILA KAUSHIK, SUMIT MAJKHOLA, RAJ SINGH THOL
Group Number: 8
Name of the Course:
GLOBAL BUSINESS ENVIRONMENT
Assignment/Case number: 01
Faculty in charge: PROF. BIBEK RAY CHAUDHURI
INTERNATIONALIZATION OF TOYOTA MOTOR CO.
I) JAPANESE BUSINESS AND ECONOMY:
[pic]
[pic]
[pic] [pic] [pic] [pic]
[pic]
[pic]
[pic]
[pic]
[pic]
[pic]
II) TOYOTA GOES INTERNATIONAL: REASONS, JOURNEY AND BENEFITS
In 1998, Toyota, the number three carmaker in the world, sold 1,711 thousand vehicles in Japan through 309 dealers, and 2,930 thousand overseas through 170 distributors deploying about 5,400 outlets in 73 countries. So, Toyota’s sales network was already fairly globalized, the markets in the East European countries surely being fallow lands yet. As for its overseas production, Toyota had 40 companies among which 27 firms in 24 countries assembled 1,468 thousand vehicles, whereas Toyota produced in Japan 3,166 thousand of which 1,463 thousand were exported. Then, Toyota seems being on the way to globalize its production network at the end of 20th century. However,
Toyota’s globalization of production came lately.
If in general the internationalization proceeds pass through four phases: export strategy, strategic alliances and shareholding investments, foreign direct investments, and globalization, the internationalization trajectory of Toyota rather shows in its basic trend the classical process, analyzed by studies on multinational firms during the 1970s and the 1980s. The successful export strategy of the firm had encountered protectionist policies, set by the importing countries for some reasons — growing trade deficits, devastating local firms, etc. — so that it decided to produce there to avoid protectionist barriers — quota, prohibitive import taxes, etc. The fact that its overseas production essentially began to replace exports