At the end of World War II, the Japanese government asked the European Automakers to curtail exports to Japan in order to help Japan rebuild its industry. The Europeans reciprocated by limiting their market to Japanese cars (C_p.267). As a result of which the quotas were very limited (e.g. Italy, 3,000 cars per year, France, Britain, Spain and Portugal approximately three percent share of their market). These quotas protected the domestic market and allowed European car makers to become more competitive before the European Community made a transition to the common market. As the economy grew, Japan wanted to access the European market. The desire of Japanese car manufacturers for expansion related to several reasons.
Tags: Toyota Europe expansion strategy, Case study: Toyota Europe, Toyota's Europe Case, Toyota Success in Europe, Toyota global expansion
[...] Toyota improve their own inefficiencies and trains their suppliers in these systems as well. This strategy is entitled, together faster, simpler. A programme to improve the quality levels of service from the supplier. (Toyota website) Rivalry among The rivalry is very high. There is a variety of existing firms: brands in each different type of car to choose from. In most industries, corporations are mutually dependent. A competitive move by one firm can be expected to have a noticeable effect on its competitors and thus may cause relation or counter efforts. [...]
[...] Toyota Motor Europe (TME) was established in July 2002, to ensure better coordination between marketing, research and development, manufacturing, and external affairs activities in Europe (Marketline 2007). Analysis of Toyota's strategy (Toyota annual report 2001) at the time and the success with which they were implemented, show why their key objectives have served the market of European Union so well and has ensured Toyota's strong competitive position. Their first strategy was to focusing investment on the development of new technologies for the environment, safety and information and communications. [...]
[...] Changing demographics like aging societies in advanced economies and growing numbers of young people in emerging ones will require Toyota to address the preferences and needs of these groups and pursue multicultural human resource policies to facilitate international mobility of their best talent. To improve consumer and social confidence, Toyota has put greater emphasis on transparency regarding information on the product and services, the environmental practices, treatment, workers, support for civic activities and political contributions of their company to enable the customer judge a company's behaviour and its business principles. [...]
[...] Environmental factors that challenged Toyota position in the European market are specified in the PESTEL analysis (appendix B). The PESTEL analysis is an acronym for the Political, Economic, Socio-cultural, Technological, Environmental and Legal factors in the external macro environment that companies have to face in their environment. (NetMBA, 2007). It plays an important role in the value creation opportunities of a strategy. This analysis indicates that Toyota's success as the company has received great backing from governments. This has provided a great boost to Toyotas already gleaming reputation as it is not often car manufacturers get backing from governments. [...]
[...] Toyota started its business in Europe not only to reduce its transportation and production costs but also to be close to political climate (their head quarters is located in Brussels which is also the location for the EU parliament. Due to Toyota's heavy investment in R & D it has been able to contribute to European politics which is much appreciated by politics. As a result, it is also able to advocate on political issues that are important to their industry . [...]
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