However, the number of challenges obstructing growth is also large.Competitive pressure :- Competition in the automotive industry has grown quite intense. Toyota must focus on making its position stronger in India and China. Its production management strategy has been hailed as among the best in the entire industry. Even in the US market, businesses have started complaining of an outdated regulatory model that hinders growth and profitability. These things also translate into strong financial performance for a vehicle brand. Competitive pressures lead to higher operational costs as well as higher expenditure on marketing and human resource management. The brand excels in technology as well as supply chain management and manufacturing. High brand equity is also a sign of higher customer loyalty and better reputation. This shows somewhat poor allocation of resources. Toyota offers cars, trucks, SUVs, van and hybrid vehicles. This has led to an intense battle. Toyota has managed this very well with the help of its global manufacturing and distribution network. In , Toyota was forced to recall around 2. There are several brands in the market and all of them are aggressive about product innovation, market share and growth.
Apart from that Toyota can use these technologies for customer engagement and to drive retention rates higher. In past, it has made several more recalls.
Toyota can use them for engaging its suppliers and customers. This has led to high operational costs in the vehicle industry.
Its continued focus in all these areas has resulted in financially consistent performance over the past several years. Now, Toyota has turned its focus towards electrification and autonomous driving.
Wednesday, April 15, Conclusion Toyota Motor Corporation which started its first product type A engine in and its first passenger car the Toyota AA in have become to be one of largest car manufacturer company in the World today.