Toyota Motor Corporation
Analysis of business-level positioning
- Toyota Motor Corporation Generic Competitive Strategy and business-level strategy.
Toyota is known to apply the cost leadership generic strategy as well as broad differentiation generic strategy. This is attained through ensuring that it keeps its costs as low as possible and providing offerings that its consumers can easily identify. For the case of cost leadership, it is noted that Toyota has competitive production rates when compared to some of its close competitors such as Subaru. To achieve this end, the firm resorted to applying Just In Time method in production, which is a strategy that has served a great deal in minimizing wastes (Peng, 2009). On the other hand, Toyota has ventured some of its resources in innovation. The aim of taking this move is so as to attain its broad differentiation generic strategy. Conversely, when it comes to business-level strategy, this firm adopts a market penetration strategy. The application of this technique has enabled Toyota to acquire a large market share.
- Mapping competitive strategies to functional strategies
One of the competitive strategies by Toyota is that of cost leadership. This strategy has been found to be effectively pursued in the manufacturing department. For instance, Toyota now uses robots in its manufacturing department. The implication of this is that the firm spends less on human labour as a way of cutting on production costs. Besides, the supplies department usually orders materials in bulk. This is so as to enable the firm to enjoy quantity discounts as a way of cutting on the costs.
Apart from the cost leadership strategy, the other strategy that is evident at Toyota is a broad differentiation generic strategy. This strategy has been effectively pursued by the research department within the firm. This department has been able to advise the firm to adopt the latest state-of-art technology in manufacturing such as the use of hybrid design (Hill, & Jones, 2009).
- Influences of Toyota’s positioning strategy to competition.
Five force analysis
Competitive rivalry
The firm is found to be competitive in the market and this is based on the fact that it has aggressively ventured in differentiation.
Bargaining power of the buyers
There are low switching costs, implying that the clients of the firm can switch to other brands at very low costs if any.
Bargaining power of the suppliers
There is high overall supply, implying that the firm has the high bargaining power to its suppliers.
Threat of substitutes
There is a low threat of substitute as Toyota recently adopted Subaru company.
The threat of new entrants
There is no threat of new entrants and this is based on the high capital cost requirement.
References
Hill, C. W. L., & Jones, G. R. (2009). Essentials of strategic management. Mason, OH:
South-Western/Cengage Learning.
Peng, M. W. (2009). Global strategy. Mason, Ohio: South-Western/Cengage Learning.