Growth Strategies Case Study

Toyota’s Bid to Replace GM : Issues and Challenges

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Abstract:
In December 2005, Toyota, Japan’s largest automobile maker announced that it would increase its global production by 10%, to 9.06 million units in 2006. This made industry analysts take note of the fact that Toyota’s estimates exceeded General Motors’ (GM) estimated production of 9 million units. Therefore, experts began to analyze if Toyota, already the second largest automobile maker in 2005, would replace GM to obtain the top slot. The case discusses in detail Toyota’s performance from 2000 to 2005 and lists the growth plans and strategies adopted. The performance of GM during the period and its turnaround plan for 2006 onwards are also discussed.

The case gives ample scope to students for discussion on whether, given the performance and challenges faced by both Toyota and GM, it is possible for Toyota to become the world’s largest automobile maker replacing GM.

Pedagogical Objectives:

• To discuss how Toyota became world’s largest automobile maker replacing GM
• To discuss about Toyota’s growth plans and strategies.

Keywords : Toyota; General Motors; Automobile Industry; World’s Largest automobile maker; Growth Strategies Case Study; Technological Upgradation; Operational Strategies; Strategic Management; GM’s Turn around plans; Toyota’s global vision 2010; GM’s financial troubles; Model Recalls; Quality Control; Successful performance

Contents: 
Introduction
About Toyota
Toyota’s Success Path
Marketing Success
Financial and Managerial Strategies
Growth Strategies
GM’s Performance
GM’s Turnaround Plans
Toyota’s Challenges