Toyota, a company known for its manufacturing plants in the automobile industry, they are the leading company

in this market within the areas of productivity and market responsiveness with the combination of speed and flexibility, In North America itself, Toyota has gained the Big Three's vehicle models with great success, sales being as high as $1.94 million and having 11.2 percent of the market share. In their home country i.e. Japan alone, Toyota sales were $1.68 million in Japan alone, it has a market share of 40 percent minimum and has maintained it for 5 years now. Toyota combines the size and volume of production, financial resources, reserves and impact, and manufacturing excellences and supremacy needed to dominate and capture the global automobile industry and its market share is such a way wherein no other car company is as strong as Toyota is in so many areas. Toyota has continuously moved forward, progressed, improved, researched problems and figure solutions; the bar has been raised for the entire industry and set better standards in the industry. Toyota pays immense attention on constant improvements (or Kaizen as they call it in their traditional language), in everything it does. It is safe to say that these vehicles are a proof that the company lives upto its pledge. Currently, Toyota is working on a pioneer plan to create global manufacturing system which is integrated and flexible in nature. The main purpose of this system is that it will be used to customize cars with respect to the local markets and is capable of shifting its production quickly to satisfy any surges in demand from various global markets worldwide. If all goes as planned, Cho, Toyotas President, will have created a system that will make the Americans and Germans shake. This system supported by cost-cutting and process redesign will save billions of dollars in the forms of expenses. This will keep reserves and margins strong and free-up cash in sufficiency and plenty for the development of new models, investments into global manufacturing. These reserves can also be used to invade potential markets, such as Europe and China. But the rival models are more famous and successful than the Toyota models. To support this, the fact that Toyota depends on U.S. business for 70 percent of its earnings, while its luxury Lexus sedans are losing to BMW, and its aged 46-target market is moving towards its end is sufficient. Toyota's rival, GM, is in the works. GM chairman, Richard Wagoner claimed that, & quotes, Toyota is a good competitor but they are not unbeatable. Toyota also has a plan and is hoping its Hybrid chain will be a revolution though their competitors doubt that. Another problem is that if their Yen remains at 110 to the dollar over the next 12 months, Toyota's pre-tax profits will shrink by $900 million. Toyota believes that it will growth in the United States. In fact it confidant about its growth and based on this it is building an $800 million plant in San Antonio, TX. This will enable Toyota to expand, so much that it will expand more than double its Tundra (full size truck) output. With this expansion, Toyota is aiming for a global market share of 15 percent. Also with these plans to expand and grow, Toyota is not afraid of the competitors and is confident of its advantages. This is where they faced a problem, soon within the development the company realized that different markets have different tastes and needs, it was not necessary that what people drive in Europe does not necessitate what people drive in the Japan or the States. They realized this soon and this is why Toyota has formed design teams from all over to work on projects, they started this initiative with a sole purpose of giving its buyers a level of style. The man behind Toyota's drive, a graduate from the University of Tokyo named Cho. This guy had long been frustrated by Toyota's old decision-making processes and cultural

insularity. He believed that this was one of the reasons due to which Toyota missed opportunities, that to on a global platform. Thus, Cho initiated the Construction of Cost Competitiveness for the 21 Century (CCC21). With the CCC21, Cho started setting targets of slashing prices of new models by 30 percent. Also, various initiatives were taken by Cho, some of them being, Lexus was a model that was to be built in Japan, whereas now it is being built in Canada. Other improvements were like production lines are now capable of building not one, but multiple vehicles on one assembly line. Such improvements resulted in improved quality, shortened welding-lines, reduced capital investment, and less time to launch product to market. Due to such initiatives, Toyota is currently on a powerful growth wave, and if Cho's plans succeed, the entire automobile industry will be in for a shock. Critique: Toyota's executives created the doctrine of Kaizen that resulted into improvements and change for the better. They continuously study problems and solve them. Toyota is close to replacing Chrysler within the Big Three. Its current U.S. shares are above 11 percent and with the current Yen situation; Toyota estimated 2003 profits of $7.2 billion, which are double what 1999's was. With increasingly reported profits, Toyota's market capitalization of $110 billion has topped GM, Ford, and Chrysler combines. The company established its product line in the United States with sports-vehicles, trucks, minivans, but it also seized the psychological advantage in the market with the gasolineelectric car, the Prius. Toyota is launching programs that would slash the number of steps needed to make cars and car parts, passing the savings onto the consumer. Unfortunately, Toyota's vehicles are not always a hit on the first try, and are not as big outside the United States; 70 percent of Toyota's earnings are dependent on U.S. sales. However, after starting its global push, 60 percent of the vehicles built in the U.S. are being sold in the U.S. The Yen is not a factor anymore. Currently, Toyota owns 12 percent share in the high-margin segment of SUV's and makes as much as $10,000 on each high end model it sells. Toyota's average incentive per car is about $647, whereas GM is $3812 and Ford is $3665. Toyota is aiming for a global 15 percent share by turning towards full-size trucks and luxury youth cars. An $800 million plant in San Antonio, TX is being built, which should double Toyota's truck output. Design teams are stationed on the West Coast of the United States, in southern France, and back in Japan. These teams work together on projects to satisfy consumer needs and tastes from all over. In addition, design teams work closely with suppliers to minimize time and costs as much as possible.

With the initiation of the CCC21, this adds to the company's strengths of building more cars effectively and efficiently. With this in mind, Toyota slashed new model vehicle prices by 30 percent. Every detail, from big to small, was being redesigned to reduce the number of parts and time needed to install those parts to cut costs. Seeking further expansion into Canada, Cho is determined to show the world that Toyota can meet its own highest standards of excellence anywhere in the system. No longer will cars be built in Japan only.

Problem: The problem that currently exists with Toyota is that it does not achieve high popularity with vehicle designs. It takes several attempts before Toyota gets it right, if ever. This is costly and time consuming. In the mean time, the competitor is attracting the consumer to their product by designing a sleek, refined, modern day vehicle. Previous Toyota design teams were from Japan and had only Japan in mind. What is a hit in Japan does not necessarily mean will be a hit in Europe or the United States.

Analysis: With the combination of design teams from all over, Toyota can help build cars that can satisfy different consumer tastes in different places. In addition, Toyota is capable and has the means to establish and operate plants globally. Such as it has been doing in the United States. Establishing plants globally has helped Toyota slash prices on new models, thus, increasing market share. Currently, Canada is in the works, and who knows what country Cho will seek next. If CCC21 plan goes accordingly, the "Big Three" will have to quickly seek alternatives. Solution: There are several alternatives that Toyota should do. Currently, it has design teams stationed globally. If sales keep increasing then Toyota would have revolutionized the automobile industry and must constantly set and meet high quality standards. If market share does not reach the intended 15 percent, Toyota should rethink its design teams and instead of having global teams working on a specific project, maybe teams can split and have the American design team, design vehicles with America in mind, European design teams designing vehicles with Europe in mind, and so on. Another alternative would be that Toyota focus only on a specific target market, such as those interesting "Luxury", upper scale vehicles. This way much attention can be emphasized on product design and cost, to maintain a competitive advantage over tits rival. With this alternative, Toyota profits a minimum of $10,000 per vehicle sold. Consequences: If Toyota decides to split up its design team according to country, it may be costly. Each country must have a manufacturing plan established and fully operable to meet consumer demands. Additionally, this will result in the loss of potential outside target markets. However, if Toyota alters its vehicle designs, this could be an advantage for the local market. Personally Toyota vehicles do not attract me as a consumer physically, even though the company offers great deals and incentive and is regarded as a highly reputable company. If Toyota decides to lose its product lines and invest only in luxury vehicles, where most of its profits are made, the target market for such vehicles may be really slim. In addition, nothing guarantees that Toyota will be a leader in this segment, especially since BMW and other luxurious models are in the competitive market. Chosen Alternative: I believe that the major problem Toyota has I its choice in vehicle designs. I recommend that Toyota's design team step back and reexamine its vehicles and see how they can redesign them, if possible, to attract attention on a nationwide level initially. For example, GM's Cadillac line has gained wide popularity beginning from stage one. Its design offers sleek contours, wide body, limits set beyond imagination inside and out. Toyota must redesign its interior features before its exterior. Foreign models are extremely plain. United States consumers like options, buttons, lights, etc. Demographic factors and psychological factors must be taken into account to help determine market potential. Other Applications: From this case, it is evident that product design, competitive prices strategies, and incentives need to be provided to the consumer to attract and gain product popularity within the market. An attractive vehicle or a distinctive product is crucial for gaining popularity from stage one, followed by design features and price. References 1. Peter, J. & Donnelly, J. (2009). Marketing Management: knowledge and

skills. New York: McGraw-Hill. 2. Toyota. (n.d.). Retrieve on March 25, 2011, from http://www.toyota.com/about/our_values/ 3. General Motors. (n.d.). Retrieved on March 25, 2011, from