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

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Recommendations of Toyota Motor Corporation: Losing The Toyota Way Case Study Analysis

On the basis of above internal and external analysis of the company along with the examination of different options, the business is advised to think about alternative 3. As alternative 3 would permit the company to expand in worldwide markets without any reduction in its regional earnings and any deterioration of its market position. The business could pursue alternative 1 which would make it possible for the business to focus on potential international markets rather than the local markets however as the company is highly dependent on the local markets with 90% of its stores in the US, there fore pursuing alternative 1 would result in the substantial decrease in business's income.

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

Expansion towards global markets through opening new stores in other Europe and Asian countries with closing domestic shops is although a great option for increasing the global existence of the business. Nevertheless, the closing of domestic shops could highly impact the profits of the firm as above 90% of its stores lie locally and closing those shops would ultimately minimize the profits of the firm. The business has a long term market position in US which can not be created soon in the brand-new markets. The alternative would assist the company to broaden in worldwide markets together with the removal of issues raised in its regional markets connected to its diversity. The advantages and disadvantages for Option 1 are listed below;

Pros:

• Exploration of brand-new worldwide markets.
• Boost in earnings from worldwide markets.
• Elimination of problems related to variety.
• Income diversity.
• Step towards being a strong worldwide brand.

Cons:

• Loss of comprehensive earnings from the local markets.
• Boost in competition.
• Distinctions in cultures could led to a failure of the brand name particularly in Asian countries.
• Low earnings at initial levels.
• Increase in marketing expenses to acquire market share.

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

Alternative 2 includes the introduction of online market locations through creating an appropriate company's website. With the increased trends towards online shopping, the online shops like Amazon, Alibaba etc. could present an extreme risk to the marketplace share of company. Furthermore, the rivals are shifting towards click and Recommendations of Toyota Motor Corporation: Losing The Toyota Way Case Help stores with Gap introducing Piperline. This shift towards online markets might decrease the profits for company. In this scenario the company might consider presenting Click and Recommendations of Toyota Motor Corporation: Losing The Toyota Way Case Solution stores. These stores with a low requirement of funds to settle would allow the company to reach global markets, without ending its domestic stores. The benefits and drawbacks of option 2 are offered as follows;

Pros:

• Low investment
• Minimizing competitors danger
• Access to the world markets
• Increasing the size of customer base
• Easy to manage
• Large Earnings
• Low Operating Expense
• Easy new market entrance

Cons:

• Threat to the marketplace position
• Removal of brand Originality
• Elimination of the great store experience.
• Danger of decline in elite sales.

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

Another option that the business could consider, is to broaden towards the international markets without closing its domestic stores that adds to the huge part of incomes of the business. The advantages and disadvantages related to Alternative 3 are given below;

Pros:

• Lowering competition hazard
• Access to the world markets
• Expanding customer base
• Large Earnings
• Exploration of new worldwide markets.
• Boost in income from worldwide markets.
• Earnings diversity.
• Action towards being a strong worldwide brand.

Cons:

• Extension of concerns associated with variety.
• Distinctions in cultures might led to a failure of the brand particularly in Asian countries.
• Low revenues at initial levels.
• Increase in marketing expenses to acquire market share.



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