Business Case Studies, Competitive Strategies Case Study, Toyota’s, US Auto Industry

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Competitive Strategies Case Study

Case Title:

Toyota’s Success in the US Auto Industry

Publication Year : 2007

Authors: Mahesh Pol, Mridu Verma

Industry: Automobiles


Case Code: COM0202P

Teaching Note: Available

Structured Assignment: Available

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The Case study is about business strategies of the auto company –Toyota Motor Corporation in the US market. Toyota is a Japan based leading automaker worldwide which offers a product portfolio including passenger cars, sport-utility vehicles (SUVs), minivans and trucks. It also manufactures automotive parts, components and accessories.

The case study talks about the dynamics of the US auto industry as of 2006-07 and position of the major players in the US market- the US Big 3- General Motors(GM), Ford and DaimlerChrysler.The big three were experiencing huge losses by 2006-07 and closing down some of their US manufacturing plants and rationalising their staff. In contrast, Toyota was flourishing in its business and expanding its operations in the US .It had become the second largest player in the US in 2006. The case study discusses Toyota’s success in the US market in two stages: Stage 1: Since entry into the US market till 2003-04 when it became the second largest player in the US and Stage 2: Toyota’s strategy to become No .1 from 2004 onwards till 2006-07.

Pedagogical Objectives:

  • To discuss business dynamics of US Auto Industry
  • To anlyse the changing trends in the US auto industry
  • To discuss Toyota’s strategy for achieving success in the US automobile market.

Keywords : Toyota; Camry; Corolla; Avensis; Lexus; Tacoma; Tundra; US Auto industry; Toyota's strategy for success; Kaizen; JIT; Lean manufacturing; Global Body Line; Hybrid Vehicles; US youth market; pick up trucks; Competitive Strategies Case Study; CCC21; Value Innovation (VI)

Contents : 
US Auto Industry
Toyota’s Strategy in the US
Toyota’s strategy to become NO.1 Player
Toyota’s US Operations Data
Toyota’s selected Financial Data
Toyota’s Core Vehicle Models

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