1 Toyota, The rise of new Era Toyota, the Rise of a New Era By: Osama Baqi Dhaeef Program Assistant, The World Bank, Iraq Country Office Brentwood University Author Note In this paper, we will go through the history of establishing Toyota Automotive Company and its general strategy and then we will reflect on the company authorized seller in Iraq. after that, we can understand both start of these companies and how many challenges that the local company encounter and how well they are doing regarding the profitability. We will also discover the main competitors of the company in the local market. 2 Toyota, The rise of new Era History and Background We'd like to start by taking a quick look at the company's beginnings and history. The largest manufacturer in the world, Toyota Motor is a worldwide corporation with its headquarters in Japan. Toyota currently owns and runs the Lexus and Scion brands, as well as a controlling position in Daihatsu Motors and minority stakes in Yamaha Motors, Fuji Heavy Industries, and Isuzu Motors. There are 522 subsidiaries in the business. As a result of the family name of the company's founder, Kiichiro Toyoda, cars were first marketed under the name "Toyoda." Previous studies have shown by benchmarking that significant advantage has been gained by the application of the Toyota Production System (TPS) both within Toyota and in their direct and indirect suppliers. However, no detailed analysis has taken place to verify where this advantage lies and how it has been achieved. In addition, analysis of whether this advantage is transferable by Toyota overseas is lacking at present. As a result of these gaps a comparative research program has been carried out in Japan and the U.K. Toyota in Iraq In 1970’s in Kirkuk city, Al-Haj Hussien Al-Bebany the founder of the business, had a vision far ahead of his time that started from simple trading of transportation vehicles. During the early 1980’s the business shifted to car trading; Sardar Cars became the most known name throughout Iraq after the business had moved to Baghdad in the 1990’s building the largest covered Car Showroom in Iraq. With more than 30 years of rich experience in the automotive sector, Sardar Group became the leading group in the Automotive Sector in Iraq. The intricate knowledge of the Iraqi market helped import, stock and sell the right brands, types, and models, while the excellent reputation, track record and credibility have helped growing the business times over since the year 2003. Since 2005 with a desire to move from Automobile Trading to providing its customers with allround Automotive Solutions, Sardar Group started utilizing the synergies of its existing operations to diversify its automotive business activities to include Trading, Leasing of Vehicles, Equipment & Machinery and most importantly Aftersales Service Support. TOYOTA’S BUSINESS STRATEGY 3 Toyota, The rise of new Era Toyota is the Japanese car company that has had the most success. Because it produces more innovative car designs and spends billions of dollars a year on advertising, Toyota has become more wellliked by many car consumers around the world. By selling high-quality vehicles at affordable prices, Toyota has built a strong reputation around the world. Toyota's pricing has decreased in contrast to those of rival manufactures. According to Toyota, purchasing should be done in a long-term, economical manner without affecting the production of high-quality items. The strategy that is included in the formula cost + profit = selling price is typically chosen by firms since they do not want to diminish their expected return. However, Toyota takes a slightly different tack, as evidenced by the equation price-cost=profit. The use of strategy has. For a firm to experience long-term sustained competitive advantage it must invest in human resources and deploy its scarce assets in the core areas that can most effectively provide the underpinning of a sustained competitive advantage. Gary R Fane, M Reza Vaghefi, Cheryl Van Deusen and Louis A Woods say that Japanese car maker Toyota is a supreme example of a company that has done just that. ( Dr Gary R Fane,Dr M. Reza Vaghefi,Dr Cheryl Van Deusen,Dr Louis A Woods; Competitive advantage the Toyota way, 2008) Solid Foundation As part of the Toyota Customer First initiative, Toyota strengthening processes for incorporating excellence that considers the needs of the customer. Toyota is painstakingly improving "design quality" at the foundational design stage by identifying the root causes of annoyance. Toyota is also improving its ability to assess quality on manufacturing lines by incorporating in-line dimension. Toyota is also reaffirming the fundamental guarantee that assembly manufacturing processes are excellent by establishing a team-leader structure for producing human resources. Furthermore, Toyota is collaborating closely with suppliers to improve quality from production to development. Toyota is increasingly seeing the benefits of these various initiatives. There is always room for improvement, as the saying goes. As a result, it is necessary to resist temptation. Growth Philosophy Toyota has spent the last decade focusing on product and supply, sales and marketing, and a broad advanced technology strategy, as well as the advancement of conventional hybrid vehicles, battery electric vehicles (BEVs), plug-in hybrid vehicles (PHVs), and fuel cell hybrid vehicles (FCHVs). Toyota believes that a company's competitiveness is driven by the transformation of its people and technology. As a result, Toyota is moving forward with personnel training, believing that developing human resources is an important part of manufacturing. These efforts go beyond simply acquiring knowledge and skills that 4 Toyota, The rise of new Era development, production, or sales divisions require. Toyota is implementing programs around the world to help all employees embrace Toyota's culture and values and become familiar with the Toyota Way. Technology Toyota has decided on a broad advanced technology strategy for the development of a diverse range of technologies and products with a focus on market formation, as well as the expansion of conservative hybrid vehicles, battery electric vehicles (BEVs), plug-in hybrid vehicles (PHVs), and fuel cell hybrid vehicles (FCHVs). The strategy of sustainable mobility extends beyond the vehicles themselves. Instead, it incorporates: the vehicles and technologies, as well as the measurement of their entire life cycle. from vehicle development and production to vehicle use and recycling at the end of life The collaborations that are required to bring these advanced technologies to market. The energy required to power the technology, i.e. how electricity is generated... Natural gas, coal, or solar? The urban environment in which these products will operate, as well as how the personal car fits into a mixed mobility transit strategy, charging and refueling infrastructure, car sharing, and so on. This broad strategy recognizes that there are numerous factors to consider when bringing a vehicle to market. Toyota is working to parallelize technology and the market to ensure the successful introduction and implementation of advanced technology vehicles by inspiring discussion above individual technologies. Training As per Porter (1980), it is important to note that during the planning stages, new-product planning emphasizes a product that is as defect-free as possible. Toyota incorporates excellence into its vehicles. Technological advances, such as Computer-Aided Design (CAD), have enabled designers to generate and transform specifications faster than ever before, while also improving design quality. The pre-production process must be of high quality. The dynamic strength in establishing a system that meets the design, cost, and production quantity goals is quality. The planning section also creates a plan that details the entire examination procedure. Quality control necessitates the close collaboration of several production departments. Toyota's competitive position in Europe's mini-car segment remains strong. While competition is fierce, Toyota possesses key competencies that enable the company to thrive in this environment. 5 Toyota, The rise of new Era Conclusion To summarize, auto industries are currently facing trade barrier challenges, and global competition among auto manufacturers has intensified. Toyota's vision is to become the world's leading automotive company and achieve great success through various marketing strategies. Furthermore, Toyota values are expressed by anticipating consumer needs and delivering outstanding products and services that improve people's lives, all while maintaining a customer focus, creativity, resourcefulness, and entrepreneurial spirit. Toyota's marketing strategies have an impact on the auto industry's globalization potential. To be successful, major auto suppliers must pay close attention to market needs and consumer expectations, cost issues in product design and development, global competition, and the political/legal environment. Being the most important step toward globalization of certain industries, cost reduction through global configuration of value-adding is required. Today, Sardar Group represents world-renowned automotive brands and heavy construction equipment & machinery exemplified in the following brands: • Toyota & Hino (in partnership with Sumitomo Corporation) • Jaguar • Land Rover Sardar Group strives to build a sustainable growth conducive to be the leading company in the Iraqi market. Sardar Group observes the laws and legislations of the Republic of Iraq through carrying out world-class business practices and will do its best to satisfy its stakeholders. Sardar Group believes in contributing to the Iraqi society at large through its continuous business development. Sardar Group is born with an inspiration to constantly innovate. Sardar Group strives to blend its local expertise with international approaches. Sardar group will always deal humanly with all people from all backgrounds and communities. Sardar Group respects its employees and provides them the opportunity to build up their skills through the corporate business, training and education. The main competitor in Iraq local market are Hyundai, Kia and Ford which share the same customers but the difference in the trust that Toyota have built with the customers through the past years. Toyota, The rise of new Era Reference: UKESSAYS https://www.ukessays.com/essays/marketing/toyota-business-strategies-analysis-marketing-essay.php Hines, P. (1998). Benchmarking Toyota's supply chain: Japan vs UK. Long range planning, 31(6), 911918. https://www.sciencedirect.com/science/article/abs/pii/S0024630198800289 Fane, G. R., Vaghefi, M. R., Van Deusen, C., & Woods, L. A. (2003). Competitive advantage the Toyota way. Business Strategy Review, 14(4), 51-60. https://onlinelibrary.wiley.com/doi/abs/10.1111/j..2003.00286.x Sardar Group Website: https://sardargroup.com/ 6
