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Strategic Analysis of Toyota Motor Global Product Portfolio : Growth Strategies of the Global Number 1 Automaker

  • February 2015
  • 89 pages
  • Frost & Sullivan
Report ID: 2722339

Summary

Table of Contents

Key Findings

Toyota Vision 2020—Become Truly Global

•Toyota announced its “Global Vision” in 2011 to help the company and its brands achieve “true competitiveness” for a sustainable growth during 2011–2020.
•In light of the 2020 vision, current group organization structure formed in April 2013 has Lexus International directly managed by the Chief Executive Officer (CEO)—to make it more geographically diversified.

$ x Billion for Each Research and Development (R&D) Center as Budget Theoretically
•As a top R&D spender globally (budget of about x % of total revenues (or $ x billion), Toyota manages a total of x R&D centers ( x are in Asia-Pacific).
•Collaboration with external partners is seen as a new trend within Toyota R&D, which otherwise never existed as a noticeable trend within Toyota’s business.

Toyota Spends Nearly $3.50 Billion in Promoting its Vehicles
•With a global advertising spend of $ x billion in 2013, most of the focus is on North America – as this market is key to all the brands within Toyota group.
•Toyota aims to further widen the gap of average showroom age of its models ( x years) above industry metrics ( x years) to keep sales lead in key markets such as the United States (US).

100 Models Key to Toyota Group Portfolio
•The Toyota badge alone sold about x million units in 2013, including all x body styles.
•Toyota and its x other brands (Scion, Lexus, Hino, and Daihatsu) have x models in portfolio.
•Powertrain is a strong forte for the group as Lexus oversees hybrid technology development.

US Manufacturing Key to Growth of Toyota Globally
•Toyota New Global Architecture (TNGA) is key to its manufacturing strategy in this decade, including the development of its flagship – next generation Prius – expected in 2015.
•Vehicle production plants in Japan have posted decrease in share since 2010. Eighteen locations in the US are key to growth.

Technology Strategy

Toyota’s technologies are based around 4 key pillars, implemented in its vehicles that are popular with consumers. The company plans to make these technologies available as mass market technologies in future.

Powertrain
•Systems for tomorrow's eco-driving.
•Continued investments in hybrids.
•Niche electric vehicle portfolio.
•Next big investment in fuel cell and its refueling infrastructure.
•Exhaustively use renewable natural energy opportunity to remain the leader in environment friendly powertrain technologies.

Safety
•As an integrated safety management concept, Toyota plans to grow its safety technology.
•Toyota has created a 3-pronged approach to achieve “real-world safety”.
•Toyota’s vision is to completely eliminate traffic casualties.

Intelligent Transport
•To link people, cars, and communities, Toyota has included intelligent transport in its technology strategy focal points.
•Thereby, all the stakeholders remain connected.
•As a result, Toyota is expected to pursue adoption of all related latest technologies in this area and make them more mass market friendly (available at customer finger tips).

Design
•Toyota J-factor is key to future models.
•It is being conceived around eco-social-safety pillars as described here.
•In doing so, Toyota is expected to use common platforms effectively via its new architecture strategy.
•As a result, Toyota creates new value from stylish looking vehicles which have more shared features (in areas which are not visible to customer).

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