International Strategic Marketing - Essay Example

For more than a decade now the automotive industry has been facing issues such as slow time to market, costly inventories, overcapacity, and low customer satisfaction and loyalty (Deloitte, 2003). In an attempt to overcome these challenges the automakers have been launching numerous initiatives to boost profitability to create value. They have been introducing product innovation to lean manufacturing and customer relationship management. The automobile industry is nearing a major turning point where it has become essential to adopt strict regulations like U.S. Corporate Average Fuel Economy (CAFE) regulations and Europe’s CO2 regulations (Toyota website).

The Big Three in the US have been replaced by the Big Six (Toyota, Honda, Nissa, GM, Ford, DC) in the automotive industry with Toyota emerging the market leaders. It is now America’s third most admired organization and enjoy a 17.4 percent share of the US retail market (SD, 2007). It has a small market share in Europe but is a market leader in Australia while also selling cars in Africa (Glover, 2006). Due to its Daihatsu subsidiary it has a presence in the Southeast Asian countries. Toyota Motor Company is clearly one such automaker that has thrived where other manufacturers have struggled.

In 2002 Toyota’s earnings exceeded the combined earnings of Ford, GM and DC (SD, 2004). Toyota has been innovative in its strategy and its success lies in its corporate philosophy known as the Toyota Production System. Toyota is now the world’s richest car company and this is the reason that this company has been chosen to understand the strategy that they have been pursuing. TMC created the first prototype vehicle in 1935 and started its exports to the United States in 1957 (Company Website).

The company gradually expanded its scope across the entire globe and today has its presence in 170 countries and