The Brand Strategies of Toyota - Essay Example

The modern age of business can be defined as the age of competition. The competition within an industry is gradually increasing with the expansion of business as many new players are entering the market. There are several reasons behind this intensifying competition. Firstly, globalization is one of the primary reasons for the expansion of trade and business that lead to increase competition. Many business organizations have found greater opportunities in overseas markets, and free trade policies and agreements between multiple countries facilitated their market expansion programs. The domestic markets have turned into global markets that heightened competition rivalry among existing domestic and new multinational enterprises. For the last two decades, society has been experiencing rapid technological improvement. The technological advancements have led to change in the structure of entire trade and business. The management tasks and operational processes are now backed with technology like e-commerce and e-business. A better grip of technological advancement helps a business organization to gain an upper hand position. Finally, enhancing the economic condition of consumers and increasing their disposable income have strengthened their purchasing power. This has also changed their consumer buying behaviors and they have developed their specific brand preferences (Vashisht, 2005, p.68).
In the modern and competitive business world, business organizations always try to position themselves in the market for avoiding unnecessary competition. In this process, they aim to achieve strong competitive advantages and core competencies that enable them to gain an upper hand position in the market. There are multiple ways to achieve competitive advantages; however, brand development is the most preferred way for creating high business value (John R. Schermerhorn, Jr, 2010).
The American Marketing Association (AMA) describes a brand as a "name, term, sign, symbol or design, or a combination of them intended to identify the goods and services of one seller or group of sellers and to differentiate them from those of other sellers.