Managing Innovation

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Table of Contents

1 Introduction…………………………………………………………3

2 History……………………………………………………………….3

3 Toyota in the next 10 years…………………………………………4

4 Conclusion…………………………………………………………...5

5 References…………………………………………………………...6

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1. Introduction

The year 2008 witnessed the long-cherished dream-fulfillment of one of the more reliable

car manufacturers around - Toyota, as it became the coveted ‘numero uno’ car

manufacturer in the world. On their way to the zenith, they left behind the ailing legend,

General Motors Corporation, an icon in itself and the unquestioned leader for more than

seventy years, by approximately 6,00,000 units (Korzeniewski, 2009). The long journey

beginning in 1937 with the establishment of Toyota Motor Corporation till the production

of the 2 millionth Prius hybrid (Toyota, 2011), is a pure reflection of the Japanese

philosophies of wisdom, learning and honor.

2. History

Toyota has its humble beginning in 1937 in the hands of founder Sakichi Toyoda, who

sold the patent rights of his automatic loom to a British concern to form Toyota Motor

Company. Already in 1935 it had created A1 prototype passenger car and G1 truck,

followed by Model AA Sedan in ’36, further followed by the first export of a Toyota car

(G1 truck) and production of GB truck(Toyota, 2011). Kiichiro, Sakichi’s son had been

bestowed with the car operations and Toyota’s early success came with building trucks

and buses. In 1953 Toyopet, the first genuinely popular Toyota car was produced. In

addition to it, Land Cruiser (civilian truck) was being produced. In 1955, Toyota

announced its first luxury car, the Toyopet Crown followed by Corona. 1957 saw the first

export of a Toyota car (Crown) to the US, followed by the first Americanized Toyota

(Corona) in 1964. The company was slowly gaining both in sales and confidence and

from being an obscure car manufacturer; it had went on challenge Ford for the no. 2

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position. Then came Corolla, Camry and then in ’89 came the first Lexus with Scion in

’99 and then the hybrids followed by its rise to the no. 1 car manufacturer spot. The

company keeps on moving from strength to strength in its perpetual search for perfection

(Toyoland, 2011).

3. Toyota in the next 10 years

In a memo named ‘Toyota Global vision 2020’ the company described how it looked at

the future with confidence, maintaining a harmonious balance between ‘Monozukuri’ or

manufacturing and nature. It goes on to say how “tomorrow’s frontiers” would open up

by meshing the energy of the people and technology, while it goes in “pursuit of higher

ideas” (Toyota Global Vision 2020-Company Outline, 2008). That is the true essence of

Toyota. True, it had had its feathers ruffled by the setback caused by more than 8 million

car recalls, which had surely damaged Toyota’s credibility, but still the experts said that

Toyota’s reputation as a brand, quality and environmental leader would remain

unscathed(Makower, 2010). Speaking in congruency with their global vision, Bob Carter,

Toyota Group Vice-President for US Sales, had said that they wanted their hybrids to be

the best-selling cars in the US by 2020 (Ohnsman, 2011), as they would be bringing in

addition to their hybrid lineup, as well as hybrid version of all of their popular models

(Lyon, 2010). Instead of being taken aback by an unanticipated disaster, Toyota evidently,

is prowling for the market harder than ever. It has planned to produce one million hybrids

in 2011 (Niedermeyer,2010), while at the same time working slowly but gradually

towards changing its positioning into more that of a ‘fun and cool’ car brand, which

would be appealing to both parents and children, with its new Highlander 2011(Toyota

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Motor, 2011). As its strategy to enter the new growth markets, especially the BRIC

(Brazil, Russia, India, China) nations, Toyota is designing new cars meant to meet their

distinctive requirements. A new model called ‘Etios’, planned for first launch in India and

then the other BRIC nations, caused sensation with heavy pre-orders in the Indian

market (Schmitt, 2010). So, Toyota has its eyes set in the proper direction, as these new,

upcoming and growing markets would be the future profit centers. As with every great

company, Toyota’s vision for the future is strikingly simple, environment-friendly and yet

intensely profound.

4. Conclusion

Toyota, the benign world leader in car manufacturing, dreams of a greener future, aiming

to be the ‘the most-admired in town’ (Toyota Global Vision 2020-Company Outline,

2008) and is working its way bravely towards the goal. Its rise from the dust to become

the most admired brand is exemplary, phenomenal and worth the highest praise.

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References:

Korzeniewski, Jeremy (2009, January 21), “No Dispute: Toyota displaces GM as world's

largest automaker”, CNN, retrieved from http://www.autoblog.com/2009/01/21/toyota-

finally-displaces-gm-as-worlds-largest-automaker , on January 8, 2011.

Lyon, Peter (2010, February), “Toyota's Five Year Future Car Plan”, Motor Trend ,

retrieved from

http://www.motortrend.com/future/future_vehicles/112_1002_toyota_future_car_pla

n/index.html , on January 8, 2011.

Makower, Joel (2010, February 16), “Toyota and the Future of Green Marketing”

retrieved from http://www.greenbiz.com/blog/2010/02/16/toyota-and-future-green-

marketing , on January 8, 2011.

Niedermeyer, Edward (2010, January 18), “Toyota plans to produce 1 Million Hybrids in

2011, but what about the quality?”, retrieved from

http://www.thetruthaboutcars.com/2010/01/toyota-plans-to-produce-1-million-hybrids-in-

2011-but-what-about-the-quality , on January 8, 2011.

Ohnsman, Alan (2011, January 4), “Toyota Aims for Prius Hybrid to become Top Seller

in US Markey by 2020”, Bloomberg, retrieved from

http://www.bloomberg.com/news/2011-01-04/toyota-aims-for-prius-hybrid-to-

become-u-s-top-seller-by-2020.html , on January 8, 2011.

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Schmitt, Bertel (2010, December 15), “Review and Talk with the Head Engineer: Toyota

Etios, BRIC Spec”, retrieved from The Truth About Cars

http://www.thetruthaboutcars.com/2010/12/review-and-talk-with-the-head-engineer-

toyota-etios-bric-spec , on January 8, 2011.

Toyota Motor Corporation (2008), “Toyota Global Vision 2020-Company Outline”,

Toyota in the World 2008, retrieved from

http://www.toyota.co.jp/en/about_toyota/in_the_world/pdf2008/02toyota_global.pdf

on January 8, 2011.

Toyota Motor Corporation (2011), “History of Toyota”, retrieved from

https://www.toyota-global.com/company/history_of_toyota on January 8, 2011.

Toyota Motor Sales USA (2011), “Toyota Announces Marketing Campaign for New 2011

Highlander”, Toyota USA Newsroom retrieved from

http://pressroom.toyota.com/pr/tms/toyota/toyota-announces-marketing-campaign-

177301.aspx?ncid=12071 , on January 8, 2011.

Toyoland (2011), “Toyota Corporate History” retrieved from

http://www.toyoland.com/history.html , on January 8, 2011.

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