Recommendations of Toyota Motor Corporation Losing The Toyota Way Case Solution

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Recommendations of Toyota Motor Corporation Losing The Toyota Way Case Study Help

On the basis of above internal and external analysis of the business in addition to the assessment of different alternatives, the company is recommended to think about alternative 3. As alternative 3 would allow the business to expand in international markets with no reduction in its local incomes and any deterioration of its market position. By considering Alternative 3, the business could preserve its shop experience and brand name individuality. However, it could also think about alternative 2 that could enable the business to access the markets with no possible financial investment. The company could pursue alternative 1 which would allow the company to focus on possible global markets rather than the regional markets but as the company is highly reliant on the local markets with 90% of its shops in the United States, there fore pursuing alternative 1 would result in the considerable decline in business's revenue. The business is advised to consider alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of Toyota Motor Corporation Losing The Toyota Way Case Analysis Stores

Expansion towards global markets through opening new stores in other Europe and Asian countries with closing domestic stores is although a great choice for increasing the global existence of the business. The closing of domestic stores might highly affect the incomes of the firm as above 90% of its stores are located locally and closing those stores would ultimately minimize the profits of the company. The business has a long term market position in US which can not be produced soon in the new markets. The alternative would help the business to broaden in worldwide markets along with the removal of problems raised in its regional markets related to its diversity. The advantages and disadvantages for Alternative 1 are noted below;

Pros:

• Expedition of new worldwide markets.
• Boost in income from international markets.
• Elimination of problems related to variety.
• Revenue diversification.
• Action towards being a strong global brand name.

Cons:

• Loss of extensive profits from the regional markets.
• Increase in competition.
• Distinctions in cultures might led to a failure of the brand name especially in Asian countries.
• Low revenues at preliminary levels.
• Boost in marketing expenses to get market share.

Alternative-2: Introduction of Click and Recommendations of Toyota Motor Corporation Losing The Toyota Way Case Help Stores

With the increased patterns towards online shopping, the online stores like Amazon, Alibaba etc. could present an extreme risk to the market share of company. In this situation the business could think about presenting Click and Recommendations of Toyota Motor Corporation Losing The Toyota Way Case Analysis shops. These shops with a low requirement of funds to settle would make it possible for the business to reach international markets, without ending its domestic shops.

Pros:

• Low investment
• Lowering competitors threat
• Access to the world markets
• Increasing the size of customer base
• Easy to manage
• Large Revenues
• Low Operating Expense
• Easy brand-new market entryway

Cons:

• Risk to the market position
• Removal of brand name Originality
• Removal of the excellent store experience.
• Danger of decline in elite sales.

Alternative-3: Expansion towards International Markets Without closing Domestic Stores

Another option that the business might think about, is to expand towards the international markets without closing its domestic stores that contributes to the major part of profits of the company. The pros and cons connected to Alternative 3 are given below;

Pros:

• Minimizing competitors danger
• Access to the world markets
• Expanding customer base
• Large Earnings
• Exploration of new international markets.
• Increase in earnings from international markets.
• Revenue diversification.
• Action towards being a strong worldwide brand.

Cons:

• Extension of problems connected to variety.
• Differences in cultures could resulted in a failure of the brand specifically in Asian nations.
• Low incomes at preliminary levels.
• Increase in marketing expenses to acquire market share.



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