Emerging Market Strategy of Toyota
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Case Code: BSTR443 Case Length: 15 Pages Period: 2010-2013 Pub Date: 2013 Teaching Note: Available |
Price: Rs.400 Organization: Toyota Motor Corporation Industry: Automobiles Countries: Global Themes: Globalization, Emerging Markets Strategy, Strategy Implementation |
Abstract Case Intro 1 Case Intro 2 Excerpts
In July 2013, Yasumori Ihara (Ihara), Executive Vice President of Toyota Motor Corporation was readying plans to bolster Toyota's position in the emerging markets by expanding operations into Cambodia, Myanmar, and Kenya. According to Ihara, who was in charge of the company's emerging markets business, "Compared with North America, Europe, or Japan, where buyers are mostly replacement buyers, it's mostly first-time buyers in emerging markets. It's where the future growth is."
The Japan-based Toyota was the world's largest automaker with a presence in more than 170 countries. In March 2011, Toyota announced its ‘Global Vision' in which emerging markets were given particular importance as part of its strategy. The company wanted to get 50% of its global sales from the rapidly growing emerging markets by 2015. The company considered China, Southeast Asia, India, and Brazil as its key emerging markets. In 2012, Toyota's consolidated vehicle sales was 8.7 million units, out of which 3.7 million were sold in emerging countries.
But in the second half of 2013, Toyota was facing intense competition from its rivals both in the developed as well as the emerging markets. The company had invested a huge amount in emerging markets, but key emerging markets were facing a lot of volatility and sluggish growth. There were concerns that these markets were no longer attractive enough. In addition to getting Toyota's emerging markets strategy right, Ihara's main responsibility was to reverse the disastrous sales decline in China, where consumers were boycotting Japanese-built cars due to diplomatic tensions over some disputed islands. " ...
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