However, i recent years, Tyota has been burdened with negative publicity associated with a variety of recalls in North America, Erope and Asia which sheds negative light on its quality measures. Cupled with economic problems in the United Kingdom stemming from the 2008 and 2009 recession, oce-predictable consumer purchasing behaviours have changed, nw making it difficult for Toyota to maintain its market share as price-sensitive consumers look for lower-cost automobile options. Tyota is an interesting case study related to its marketing strategy as the company still maintains a quality-focused even in the face of growing concerns about Toyota’s quality and where price-sensitive buyers are seeking alternative brands to satisfy their budgets impacted by the economic issues in the United Kingdom.
Tyota only maintains a 4. 2percent market share in the whole of Europe (InAutoNews 2011) and, dspite this inability to outperform major competition, te company still aims for increases in market share (Kim 2009) which seems impractical due to negative publicity and changing buyer behaviours related to pricing structures. Tis report examines the strengths and weaknesses of Toyota’s strategy, eamines the value creation process within the company, ad makes recommendations for improving Toyota’s competitive position.
Te most critical strategy for Toyota is publicising its lean production methodology which makes the business a cost leader over competition and also provides opportunities to offer consumers moderately-priced automobiles over that of competing products. Tyota operates in a heterogeneous market with a diverse profile of consumers each maintaining different motivations, neds and culturally-driven values which conflicts establishing a homogenous CRM program and promotional strategy. Aditionally, cmpetition has complete access to labour cpital and a well-developed supply chain in the UK (Shah and Ward 2007), mking lean production a contributing factor in its marketing strategy with a position on quality.
Tyota’s just-in-time production methodology involves attempts to maintain a zero inventory (Christopher and Towill 2001), tus avoiding the significant holding costs that most competitors must maintain in complicated supply systems. Tese costs include lighting, wrehouse space costs, txations, prsonnel costs for maintaining inventory and warehousing...
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