Hyundai Strategy

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Case Study 2

Toyota’s Globalization Strategies

Suggested case discussion questions

Q1 Identify what ‘drivers’ have been influential in Toyota’s pursuit of globalization

Toyota’s journey to become a global automotive firm has had a number of key drivers.
Strong family values based leadership: The leadership of first Sakichi and Kiichiro Toyada in the early days, and then Fujio Cho in the later years have been crucial in Toyota developing the ambition to succeed on a global basis. Of the ‘drivers’ of globalization discussed in chapter three, some have played a more important role others.
Culture: Cultural homogenization has played some part as populations in emerging economies, in particular, aspire to car ownership. Countries like China, India and Brazil are seen as huge potential markets for Toyota
Target segmentation clear: Increasing middle class seek car ownership to affirm their status. Economies of scale and scope: Significant driver as Toyota utilized scale economies by opening manufacturing plants in low-cost countries, and exploited scope economies by sharing significant parts across product lines and with other manufacturers in joint ventures.

Centralise: Toyota took the decision to centralize these activities in its global operations in its third globalization program.
Market factors: Deregulation and the lowering of trade barriers gets little mention in the case study, but was influential in that how China opened up its markets to outsiders, in turn, shaped how Toyota moved into that market through the setting up of alliances and joint ventures. Strong international competitors appear a key driver.

Influenced by certain western qualities: Kiichiro Toyada seemed strongly influenced by what he witnessed at Ford and the desire to compete at that level became embedded within the fabric of Toyota. Its latest explicit aim is to…...

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