Toyota RBV Analysis
Introduction
The world is a dynamic marketplace and the constant drive for survival and excellence has put companies on toes to modify their strategies for the next round of competition. During early 1990’s, Toyota Manufacturing Company’s (TMCs) faced with severe challenges such as non-innovative products, less aggression in production shift to accommodate overseas markets and distrust from the Japanese dealers; consequently, these challenges led to TMC’s lower bottom-line. To rejuvenate the Toyota’s image and on a quest for survival, TMC launched a committee to design the car for the 21st century: Prius. Applying the RBV framework and analyzing the Prius launch case—utilizing the concepts of strategy as “resources leverage”—gives a better …show more content…
This formed the basis for TPS, which is the valuable resource embedded into Toyota’s routines, processes and culture. These skills-sets enabled Toyota to transform a car, which is a commodity, into a superior quality product. Toyota’s overall organizational capability is the resource that is hard to imitate; furthermore, to substantiate this statement, the US Big 3 tried to imitate TPS system, but failed to replicate the performance of Toyota. The RBV analysis (Appendix 2) indicates that the overall organizational capability and culture are inimitable; therefore, the profit stream Toyota generates is likely to be …show more content…
This strategy will enable Toyota to be the first adopter of hybrid powertrain technology and will create a new market segment. With focused marketing strategy, Prius will be able to demand premium from the customers, which will help in offsetting capex (R&D and Product line). Furthermore, this will enhance the brand image of Toyota as ecofriendly and innovative company. By leveraging other attributes such as fuel economy, lower emissions and reduced fuel costs, Prius will have the potential to penetrate existing conventional automobile markets. Launching Prius successfully will enable Toyota to upgrade its existing resources by adding a new competence-hybrid technology to its core
The world is a dynamic marketplace and the constant drive for survival and excellence has put companies on toes to modify their strategies for the next round of competition. During early 1990’s, Toyota Manufacturing Company’s (TMCs) faced with severe challenges such as non-innovative products, less aggression in production shift to accommodate overseas markets and distrust from the Japanese dealers; consequently, these challenges led to TMC’s lower bottom-line. To rejuvenate the Toyota’s image and on a quest for survival, TMC launched a committee to design the car for the 21st century: Prius. Applying the RBV framework and analyzing the Prius launch case—utilizing the concepts of strategy as “resources leverage”—gives a better …show more content…
This formed the basis for TPS, which is the valuable resource embedded into Toyota’s routines, processes and culture. These skills-sets enabled Toyota to transform a car, which is a commodity, into a superior quality product. Toyota’s overall organizational capability is the resource that is hard to imitate; furthermore, to substantiate this statement, the US Big 3 tried to imitate TPS system, but failed to replicate the performance of Toyota. The RBV analysis (Appendix 2) indicates that the overall organizational capability and culture are inimitable; therefore, the profit stream Toyota generates is likely to be …show more content…
This strategy will enable Toyota to be the first adopter of hybrid powertrain technology and will create a new market segment. With focused marketing strategy, Prius will be able to demand premium from the customers, which will help in offsetting capex (R&D and Product line). Furthermore, this will enhance the brand image of Toyota as ecofriendly and innovative company. By leveraging other attributes such as fuel economy, lower emissions and reduced fuel costs, Prius will have the potential to penetrate existing conventional automobile markets. Launching Prius successfully will enable Toyota to upgrade its existing resources by adding a new competence-hybrid technology to its core