Business Case Studies, Market Entry Strategies Case Study, Toyota, France

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Market Entry Strategies Case Study

Case Title:

Toyota in France

Publication Year : 2006

Authors: Girija P, Krishna Chaitanya V.

Industry: Automobiles


Case Code: MES0030

Teaching Note: Not Available

Structured Assignment: Not Available

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The Japanese carmaker Toyota, the second largest car manufacturing company, entered France in 1971 as part of its global expansion strategy. Initially, it imported cars from Japan. After the lifting of import restrictions in 1998, it set up a manufacturing unit at Valenciennes, in Northern France, and generated 2,000 jobs. The company implemented 'just-in-time' techniques and 'kaizen' to improve its plant efficiency. Toyota became successful in France with the increase in sales of its cars like Yaris, Corolla, Avensis and Prius. But as demand for the cars increased, it started facing competition from Mercedes, BMW, and Audi.

Pedagogical Objectives:

  • To discuss entry strategies of Toyota in France and the strategies adopted by the company to compete with big local players like Renault, Volkswagen, and BMW in order to gain a substantial market share.

Keywords : Toyota; France; Growth strategies; Market Entry Strategies Case Study; Acquisitions; Car industry; Compaq; Expansion; Europe; Competition; SUV's (sport utility vehicles); Japanese car companies; Market shares

Contents : 
The European Car Industry
The French Car Industry
Toyota’s Globalization Strategies
Performance of Toyota
The European Car Registrations Between January and June 2004
France as the Central Location for the Companies
Comparison of the Hourly Wage Rate of Different Countries
Sales of Toyota in 2005 in Different Regions

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