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TOYOTABy Abhilash Alex
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Company Background
Car Industry Trends
Toyota Challenges & Strategies
Our Questions for Toyota
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Company BackgroundCompany Background
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Production: ~7.2 million Units/Yr.
56manufacturing plants in 6 continents 1st largest automotive manufacturer in the
global market
Headline Facts: ToyotaHeadline Facts: Toyota
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Established in 1937 out of Sakichi Toyodasweaving machine company
Launched first car (SA Model) in 1947
Toyota Production System formed in 1950based on Just-In-Time principle
Overseas production starts in 1959 (Brazil)
In 1972, cumulative production >10M units
In 2002, entry in the Formula 1 circuit
Company HistoryCompany History
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Automotive [90.0% Sales]
Design, manufacture and sales ofpassenger cars,
recreational vehicles, SUVs and related parts
Financial Services [4.5% Sales] Provisions of loans to car buyers and car dealers
Others [5.5% Sales]
Industrial vehicles (forklifts, etc.)
Pre-fabricated housing
Business SegmentsBusiness Segments -- Low DiversificationLow Diversification
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Revolutionized manufacturing industry
At its core is leanprinciple Relentless drive to improve efficiency and
eliminate waste
Beginnings of TPS were born out ofnecessity due to lack of resources in
post-war Japan
Revolutionary Production SystemRevolutionary Production System
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Toyota Production System:Toyota Production System:
Key Main ConceptsKey Main Concepts
Just In Time manufacturing
Small batches which reduced inventory costs, tightenedrelationship with suppliers and improved quality control
Just In Time manufacturing
Small batches which reduced inventory costs, tightenedrelationship with suppliers and improved quality control
Low cost
supplier
Low cost
supplier
Asking Why?5 times to locate source ofproblems
Stopping the production line whenever there are quality
problems to ensure they are not repeated
Asking Why?5 times to locate source ofproblems
Stopping the production line whenever there are quality
problems to ensure they are not repeated
JIT JIT
5Whys
Quality
5Whys
Quality
Long term supplier relationships Long term supplier relationships
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Car Industry TrendsCar Industry Trends
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Consolidation
Push to Emerging Markets for Growth
Global Emphasis on Small-Size Vehicles
Environmentally Friendly Products
Internet as a K
ey Enabl
er of Chang
eof
AutomotiveRetailing
Car Industry TrendsCar Industry Trends
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Toyota ChallengesToyota Challenges
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Industry overcapacity
Economic downturn
Globalization
Environmental concerns
The IT revolution
Diverse and shifting consumer demand
Toyota ChallengesToyota Challenges -- SummarySummary
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Toyotas StrategyToyotas Strategy
Increase competitive strength throughadvanced technology
Promoting a global perspective
Value-driven cost reduction(CCC21program)
Expanding the value chainbecomingthe Total Mobility Services Provider
Expansion ofmodel offeringsQuality,value, and style?
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Repositioning Product Strategies
Local and International
Environment
Competitive
Situation
FirmsInternal
Situation
Customer Needs &
Price
Elasticity
Product
Strategies