Toyota Motors: A Japanese Multinational Automaker in China




Case Details Case Introduction 1 Case Introduction 2 Case Excerpts

Abstract

The case is about the journey of the world’s largest automobile manufacturer, Toyota Motor Corporation (Toyota), in the world’s largest car market, China,. Toyota entered China in the 1930s when it built plants in Tianjin and Shanghai and carried out local assembly in China. The case discusses the strategies adopted by Toyota to tap the Chinese market.

The strategies of Toyota in China included developing sales structure and logistics networks as well as adopting a specific hybrid car strategy for the Chinese market. However, Toyota’s performance in China was affected as the company had been facing troubles in China due to the World War II legacy.

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Issues

The case is structured to achieve the following teaching objectives:

  • Understand the strategies followed by companies from developed countries in emerging countries;
  • Understand the issues and challenges tackled by established companies in developing market conditions and customer demands;
  • Understand the geo-political issues faced by Toyota in China;
  • Evaluate the strategies adopted by Toyota in China;
  • Assess the challenges faced by Toyota as a Japanese company in China;
  • Explore strategies that Toyota could adopt in China.

Contents
Introduction
About Toyota
Chinese Automobile Industry
Toyota In China
Toyota's Strategies In China
Geo-Political Tensions
A Failure in China?
The Road Ahead
Exhibit

Keywords

International Management; Internationalization; Geo-political tensions; World War II legacy; Cultural issues; Localization; Emerging countries; Sales structure; Logistics; Chinese automobile industry; Joint venture; Toyota; Managing across borders and cultures

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