Abstract

Japanese car maker Toyota, the strongest player in the global automobile industry, is set to overtake Chrysler in sales to become one of America's Big Three. Toyota's success is the result of rapid product development, world-class manufacturing, obsessional devotion to customer satisfaction and the quest for continuous improvement. In recent times, Toyota has been revamping its ordering, manufacturing and distribution to make it easier for dealers and customers to make changes just before production. Reducing lead time will not only improve customer satisfaction but also cut dealer inventory and the need to offer rebates for slow-selling vehicles. Toyota is also focusing on product innovation to effectively serve niche segments with specialised requirements. The company is striving to improve its styling and designs, even as it continues to make the product development process more efficient. Will Toyota be able to build further on its competitive lead?

Learning Objectives

The case is structured to achieve the following Learning Objectives:

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Keywords

Process innovation, Toyota, Big Three, Built to order demand, Logistics, Streamline, Global body shop, Product innovation, Lexus, US, Japan, Automobile industry, Global ten objective, Prius, GM, General Motors