The paper "The Global Production Network of Toyota" is a wonderful example of a case study on marketing. Global production Network is the production and distribution of a specific product and service in which its development functions, operations and transactions are interconnected all over the world until it gets to the consumer (Coe et al. , 2004). It is a production network whose links are connected across the boundaries transforming inputs into demanded services and goods. One of the best Global Production Network is the Japanese automotive industry that produces cars all over the world (Dicken, 2015).
These cars include Toyota, Mitsubishi, Suzuki, Mazda, Honda, Subaru and Nissan but this essay will only focus on the Global Production Network of Toyota. In 2012 the Toyota Company produced 10 million automobiles making it the third-largest automotive producer in the whole world. This means it produces 30% of the automobiles in the world. Japan’ s production of cars started growing in the 1960s and gradually developed from the 1970s to 1990s (Kaisha, 1996). During this time it was already selling its products both domestically and internationally.
In the 1990s it overtook The United States to become the leading country in the production of cars worldwide (Marksberry, 2013). The Toyota Company has a globally integrated structure in the Global Production Network, this means it has different plants all over the world that assemble and produce cars but import the different vehicle parts from different countries in order to come up with the automobiles. This is because of some complex vehicle parts like the engine, which some of the company’ s plants cannot make and have to import. In locational strategy, Toyota has a vertical transnational integration since the company does research about a region before producing a certain car (Chiarini, 2014).
Furthermore, parts are made at different locations where they are easily found. Toyota also assembles its automobiles in places where there is cheap and skilled labour. Toyota’ s success is as a result of committed employee collaboration and participation in production. It focuses on supply chain and inventory management which has led to the creation of high-quality automobiles (Fuchs, 2014). It has also focused on educating employees and using unique approaches to solving different kinds of problems.
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