A Case Study
On
“Toyota’s Motors”
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Bangladesh University of Business and Technology
Case study
On
Toyota’s Motors
Prepared to
SHARMIN SULTANA
Lecturer
Department of Management
Bangladesh University of Business & Technology (BUBT)
Prepared by
Shakila Naz Nisha
226
Israt Jahan
225
Date of Submission
18th April, 2011
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Letter of Transmittal
April 18, 2011
Sharmin Sultana
Lecturer
Department of Management
Bangladesh University of business & technology (BUBT)
Subject: Submission of a Case study on Toyota Motors.
Dear Sir,
It’s our pleasure in presenting the report on Investment management. Which is done is partial
fulfillment of the requirement of BBA degree. As measurement we are enthusiastic to you for
giving me the opportunity to undergo such an experience.
We have tried our level best to gather the possible information. In preparing this report we were
very much concern about the gathered knowledge and necessary information collected from
various sources as well as your instruction and guidelines.
We are sincerely hoped that this Report will get your approval and its appraisal would
demonstrate my ability to prepare a formal report. We would be glad to furnish you with
clarifications, if required.
Sincerely yours
………………
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Acknowledgement
Firstly, we would like to express our deep feeling of being grateful to almighty Allah who
invisibly helps us to complete this assignment, which has not only enhanced our ability and skill
but also inflicted a lot of confidence in ourselves.
Every comprehensive work such as constructing this type of report must we credit to multiple
people and institutions. In this preparation and completion of this report, We thankfully
acknowledge to our course teacher Sharmin Sultana, lecturer, Department of management,
BUBT for his eager, helpful and enthusiastic guidance which encouraged us to accomplish this
case on “Toyota motors” without his incessant support this work would not have found the back.
We are also grateful our entire friend to encourage us and give us the information about Toyota
motors.
With Thanks………..
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Table of Contents
Topics
Page No.
Letter of Transmittal
03
Acknowledgement
04
Toyota in one Look
06
Toyota’s business strategy
07
Sales Strategy
08
Market Segmentation
08-09
SWOT Analysis of Toyota Motors
10-11
Conclusion
11
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Toyota in one Look
This section lists basic facts about Toyota in addition to the latest activities relating to latest
business results.
“Toyota’s Goal: A High-Value Vehicle to Match Every Customer Need”
Company Name
President and
Representative
Director
Toyota Motor Corporation
Akio Toyoda
1 Toyota-Cho, Toyota City, Aichi Prefecture 4718571, Japan
Head Office
Phone: (0565) 28-2121
August 28, 1937
Date founded
397.05 billion yen (as of March 31, 2010)
Capital
Main Business Activities Motor Vehicle Production and Sales
Number of employees
320,590
(Total in affiliated
companies)
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Sales region of Toyota
Motors
Toyota’s business strategy
Toyota defines its strategy depend on two different approaches.

Demand

Supply
Demand: To produce that range of vehicles that optimizes the amount of value it can create
for different group of customer.
Supply: The number of models it makes constraint by the need to keep it cost structure
efficient and choosing the car price options that general the sales revenue and this all allows
the best return on invested capital.
Graphically forecasting Toyota’s Sales and Production:
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Sales Strategy
Toyota Motor Corporation primarily conducts business in the automotive industry. Its
automotive operations include the design, manufacture, assembly and sale of passenger cars,
recreational and sport utility vehicles, minivans and trucks and related parts and accessories.
A dual focus on both cost leadership and differentiation is often required across the various
segments of the value chain.
Cost leadership: Low cost and first time in market (16000 to 18000) dollars. For example In 1999 Echo. a subcompact car that featured state of the art engineering to deliver
exceptional fuel economy.
 In 2002 Toyota matrix introduces “fuel the music”.
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Differnciation: Luxury small sports utility Vehicles range (20000 to 35000) dollars. For
example The expensive Toyota Land Cruiser
 The average sports utility RAV4
Market Segmentation
Market segmentation is the process of classifying customers into groups with different needs,
characteristics or behavior. There are four types of segmentation these are Geographical,
Demographic, Psychographic, and Behavioral and also forecast the marketing mix. Mix Strategy
includes Product, Place, Price and Promotion.
Geography Segment:
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Demography Segment:
Demographic segmentation includes age, sex, family size, family life cycle, income, occupation,
education, religion and nationality.
Age: Young adults to old earner.
Income: Who can affort with the choice.
Behavioral:
General buyer of car and buyer of the luxury car.
Psychographic:
Low price car consumer and consumer of sports utility vehicle.
SWOT Analysis of Toyota Motors
Strengths
 Its ability to go from the initial design stages to production stages in two to three
years
gives it the ability to bring out new models faster that its competitors and
capitalized on the developments of new market niches
 Focused segmentation, targeting and positioning in a number of countries.
 Maximizes profit through efficient manufacturing approaches
 The company makes a large range of vehicles for both private customers and
commercial organizations, from the small Yaris to large trucks
Weaknesses
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 Being big has its own problems
 The company needs to keep producing cars in order to retain its operational efficiency.
Car plants represent a huge investment in expensive fixed costs, as well as the high
costs of training and retaining labour.
 The failure to position their products to hit the targeted market segments (in 1999 Echo)
Opportunities
 Lexus and Toyota now have a reputation for manufacturing environmentally friendly
vehicles
 Toyota is to target the 'urban youth' market. The company has launched its new Aygo,
 The vehicle itself is a unique convertible, with models extending with their rear utility.
Threats
 Toyota was not alone in its decision produces sports utility vehicles. Toyota faces
tremendous competitive rivalry in the car market
 Product recalls are always a problem for vehicle manufacturers
 It faces threats for fluctuating economic and political conditions those markets.
Conclusion
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Toyota has used the strategy of segmenting car with low cost structure to produce efficiently and
ever –incising rage of vehicles tailored of different segments of the car markets and the same
time high luxury sports vehicle. A workplace with high morale and job satisfaction is more likely
to produce reliable, high-quality products at affordable prices. Toyota and Honda have
institutionalized many successful workforce practices.
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