The paper "Strategic Management at Toyota Car Manufacturing Company " is an outstanding example of a business case study. Strategic management is a concept which has been in practice in the business management field for a long time. However, over the recent past, the concept has gained a lot of focus but many business professionals owing to its importance in the management of an organization (Grant 2007, p. 12). Generally, the strategic management concept is not constituted of a single strategy, but instead, it is an integration of several strategies, each of which has an important role to play in the management of an organization.
The basic principle in strategic management is to ensure sustainability; ensuring that there is the proper utilization of resources, embracing the most appropriate processes and principles with a view of ensuring that a business organization remains competitive today and in the future (Nandakumar, Ghobadian & O’ Regan 2011,p. 223). Some of the concepts in strategic management include Porter’ s five forces and Porter’ s generic business strategies which give an indication of how a business organization is able to compete effectively in the market.
Another element of strategic management is the concept of core competencies which ensures that an organization is able to make use of its core abilities and outstanding features to gain a competitive advantage over its competitors. The following essay will take a deep insight into Michael Porter’ s five forces model, Porter’ s generic business strategies and the concept of key competencies with respect to the Toyota Car Manufacturing Company. Toyota Car Manufacturing Company is one of the largest car manufacturing companies in the world. The company is in the rank of the top three car manufactures in the world, the other two being General Motors and Ford.
The home of the Toyota Car Company is located in Japan but it has factories in many locations around the world, going by its high tech manufacturing processes and principles (Toyota Car Manufacturing Company 2012, p. 1). Generally, Toyota has been performing well in the international market, with steady growth in revenue and market share; hence emerging as the must-see car on any road in the world. This essay will analyze the company’ s strategy with respect to the concept of core competencies, Porter’ s five forces model and Porter’ s generic strategies. The Porter’ s five forces are used in the business world to analyze a specific industry, hence providing an opportunity for the development of appropriate business strategies which aim at ensuring that a business is competitive in the market.
The five forces which were identified by Michael Porter are the rivalry which exists between the competitors in the market, the entry of new players into the market, the threat of substitute products, bargaining power of suppliers and the bargaining power of the customers.
The five forces will be analyzed with respect to Toyota Motor Corporation’ s Business Strategy of 2008. With respect to the first force of the existing rivalry between the competitors in the market, it can be seen that the automobile industry is highly competitive. The competitors to Toyota in the car manufacturing industry include General Motors (GM), Volkswagen Group, Ford, Honda, Nissan, PSA Peugeots, Hyundai-Kia, Suzuki and Fiat which make the top 10 car manufactures in the world. For a long time, the competition in the industry has been stiff and GM has been the largest car manufacturer in the world.
However, Toyota overtook GM in 2009 to become the largest car manufacturer in the world in terms of sales volume (Ryal 2009, p. 1). This can be linked to its strategic plan which sought to increase the number of sales of the company by focusing on the emerging markets and establishing a strategic marketing plan (The Toyota Car Corporation 2008, p. 5).
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