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Competitive Strategies Case Study

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Case Title:

Toyota Motors in Emerging Markets (PartA)

Publication Year : 2006

Authors: Dr. Uddipto Roy and Kumar Satyaki Ray

Industry: Automobiles

Region:US Europe Asia

Case Code: COM0186K

Teaching Note: Not Available

Structured Assignment: Not Available

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Abstract:

In the year 2000, Toyota rolled out its multi purpose vehicle (MUV) ‘Qualis’ in India which was an instant success. Gradually It introduced Camry, Corolla and later in 2005, Innova. All these models created success saga for Toyota Kirloskar. Notwithstanding of its initial success, Toyota could manage to have meager 5% market share in Indian passenger car market which remained far away from its mission statement to grab 10% market share in Indian passenger car market by 2010. Analysts predicted that unless Toyota would enter into compact car segment, it would unlikely to have that much market share

The case deals with the decision dilemma in Toyota India operation. Would it pursue its aggressive cost leadership strategy or follow the path of differentiation? Would it follow the rule of the industry and try to be best in the known path or would it reshape the industry dynamics by introducing alternative fuel cars in a mass scale?

Pedagogical Objectives:

  • To understand the macro and micro environment of Indian Automobile Industry
  • To discuss the entry strategy of Toyota Motors in India
  • To analyse Toyota’s strategy of adapting localisation strategy while maintaining the company’s Global vision.

Keywords : Competitive Strategies Case Study; Toyota; Entry strategy; Late mover; Planned obsolescence; Prius; Cost leadership; Differentiation; Indian automobile industry; Price competition; Innova; Camry; CBU (completely built unit); CKD (complete knocked down); Midsize sedans; MUV (Multi utility vehicle)

Contents : 
Indian Automobile Industry
Most Fuel Efficient Cars Sold In The Us
Alternative Fuelled Vehicles In The Us
Country Wise Establishment Of Toyota Motors
Indian Car Industry: Models In Different Segments

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