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TitleStrategic Management Toyota
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INTRODUCTION

Indus Toyota Industries has serving its customers since long time. Indus Toyota motor
develops and manufactures automobiles and automobile-related products, such as
vehicles, engines, car air-conditioning compressors, car electronics components and
devices, and stamping dies.

 THE EYES OF THE CUSTOMERS

"Concern beyond Cars"
We are providing reliability, after sales service, better performance, safety and spacious.
We know that the only way to meet the needs of the customer is by putting our self in the
shoes of customers and asking our self what we need, what would make us happy.

 REGIONS

Indus motors (Pakistan) started its business in Pakistan as a public limited company in
December 1989. The shares of the company are quoted on the stock exchanges of
Pakistan.
IMC’s production facilities are located at Port Bin Qasim Industrial Zone near Karachi in
an area measuring over 105 acres

Plant (Indus Motor Company Limited
Plot No. N.W.Z/1/P-1, Port Qasim Authority, Karachi, Pakistan)
Karachi
Quetta
Larkana
Lahore
Faisalabad
Sargodha
Multan

Sialkot
Islamabad
Rawalpindi
Peshawar
Azad Kashmir
Dera Ismail Khan
Mardan

Core values

Based on five pillars

• Respect for People.
• Safe and friendly environment for all.
• Best work practices based on Ethics and Integrity.
• Teamwork.
• Honesty is the best policy

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PRICE ANALYSIS

 Are the companies price and cost are competitive?

Indus Motors Co. Ltd
No Products CC Cost

1 Coure 800cc 709000
2 Cultus 1000cc 897000
3 Toyota corolla 1300cc 1269000
4 Toyota Camry 2400cc 6299000
5 Hilux 2800cc 3140000
6 Land cruiser 3800cc 13000000

Atlas Honda
No Products CC Cost

1 Honda civic 1500cc 1229000
2 Honda city 1300cc 1349000

Suzuki
No Products CC Cost

1 Mehran 800cc 514000
2 Ravi 800cc 489000
3 Liana 1300cc 1229000`

What do our customers wants?

As we are in the auto industry and every day is a new day because every thing inside and
outside the organizations changes rapidly i.e. consumers preferences, technology, trend,
culture and demand. So we are focusing on the following wants of the consumers.

• They want reliability
• They want quality
• They want low mileage
• They want fuel efficiency
• They want innovation and new products.
• They want high resale value.
• They want safety installed in the cars

Do we really know that?

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Yes we know that our customers want these facilities. We keep tracking and
analyzing the needs and demand of our customers.

Are we providing these facilities?

Yes we are providing these facilities because Indus motors have a large number of
products and solutions in the automobile industry with the best people and best
technology. We know how to make our customers delight and how to make long
term relations with our customers. All the parts are easily available at economic
prices, they have the benefit of fuel efficiency, we are known in the eyes of
customers for reliability and best quality, Indus motors also provides the best
resale value of their cars in the market which attracts the customers and so forth.

SWOT ANALYSIS:

SWOT analysis is an analytical tool that for understanding the strength and
weakness of organizations and opportunities and threats. With a thought, it can
help you uncover opportunities that you are well placed to exploit. And by
understanding the weaknesses of your business, you can manage and eliminate
threats that would otherwise catch you unaware.

Strength:

 Loyalty from the customers
 Extensive research and development
 Highly customer focused cars
 Strong financial position
 High resale value
 Easy availability of spare parts
 Well established dealer network
 Enjoying 26 % market share
 Brand image in the mind of customers
 Brand loyalty of customers
 Toyota currently uses ultra high strength steel grades in 2009 model year

vehicles
 Diversified product range
 Positive work climate and organization culture
 After sales service


Weakness:

 Low capacity of production with respect to Pak Suzuki

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This activity includes and is driven by corporate or strategic planning. Toyota motors
implemented management information system (MIS), and other mechanisms for planning
and control in different departments.

EXPECTED SUGGESTED STRATEGIES

BACKWARD INTEGRATION

Steel price are going high and it may be cause of increasing cost of product and also
create problem in availability of steel which is very key Raw Material of automobile
industry. So, Toyota should adopt “Backward Integration Strategy” to overcome expected
future problem. ( Toyota have a very good Balance Sheet).

FORWARD INTEGRATION

According to the available Data it reveals that in “Economy Segment” Coure have a
strong competitor Mehran due to two reasons:

1) Low Price
2) Number of Dealers

Toyota has 32 dealers while Suzuki has 45 dealers. In this situation Toyota should adopt
“Forward Integration” to take control of dealers and number of dealer should be
increased.

COST LEADERSHIP STRATEGY

Suzuki says that it’s become a House hold name because they focus in the Middle and
Upper Middle class. Mehran and Alto are considered economical and popular among
them, although Coure is their to this class but it’s so expensive than Alto and Mehran.
This segment has very potential to Increase the Sale Volume of Toyota. Mehran growth
p.a. is 42% while coure just 16% question is why?

Toyota should adopt cost leadership strategy to focus Middle and Lower Middle class
customer to beat their competitors in 800cc and 1000cc cars.

FINAL STRATEGY

According our assessment “Backward Strategy” is better for Toyota.

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If Toyota adopt this Strategy than No change in Vision and Mission Statement.

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