Japan, Toyota, and the Hybrid - a Case Study

Table of Contents

• Introduction………………………………………………………………………3

• History of Toyota Motor Corporation………………………………………….3

• Toyota Management……………………………………………………………6

• Why Toyota Developed Hybrids and the Benefits of Owning One………..7

• Advertising and Marketing Techniques………………………………………8

• Toyota Hybrid Sales……………………………………………………………10

• Awards for the Toyota Prius Hybrid…………………………………………..11

• Toyota’s Future Plans………………………………………………………….12

• Conclusion………………………………………………………………………13

• Bibliography……………………………………………………………………..14

Japan, Toyota, and the Hybrid

Toyota Motor Corporation is a successful company that has had its own share of ups and downs, but through it all, it has continued to improve itself by staying ahead of the competition and always thinking ahead. To understand how they got where they are today, one must first examine their history, and that they pride themselves in their efforts to think ahead and introduce an innovative idea to markets first. This then helps people to see why they manage the way they do. Toyota cares about its employees and their ideas are often implemented. In fact, Toyota is set on changing the world, that they developed a type of engine called a hybrid to increase fuel-efficiency and lower the harmful emission that pollute our air. A great deal of money has been spent on advertising and marketing techniques to let markets all over the world know that this new technology is the solution to a number of the problems that face the automotive world. Toyota Motor Corporations marketing techniques have been so successful that their first hybrid car, the Prius, has taken the world by storm in virtually every market when it comes to sales and awards. But Toyota doesn’t plan on stopping here. A number of plans are set to decrease cost of hybrids, introduce new styles and sizes of gas/electric vehicles, and increase sales in markets all across the world. It is no wonder that Toyota has become a powerhouse in the auto industry today.

The History of Toyota Motor Corporation

Sakichi Toyoda was a terrific inventor who showed little interest in following in the family footsteps working in the carpentry business. Instead, he put his efforts into improving the handloom machinery that was used in the textile industries. In 1926, Sakichi created the Toyoda Automatic Loom Works based on his groundbreaking designs and improvements of the loom machinery. From these designs, came a lot of money, and with this money, he and his son, Kilchiro, founded Toyoda (Toyota) Motor Company. The first engine was produced in 1934 followed by the first car and truck in 1935. Toyota’s first few vehicles contained extremely high numbers of imported parts, but was able to compete with its stiff and established competition from Ford and General Motors, who had set-up their own manufacturing units in Japan, by undercutting their prices. The Japanese government soon backed Toyota’s production because of the potential profits and its involvement with the war. The government placed restrictions on the operations of Ford and GM in Japan and created tax reliefs and exemptions from duties of imported parts to help Toyota push ahead of their competition. Meanwhile, in the 1930’s, the Japanese military began fighting in Manchuria where they were using foreign trucks. The Depression had a great effect on the money supply and the Japanese needed cheaper vehicles. The government decided that mass production of trucks with Japan would help reduce costs, provide jobs, and make the country less dependent

on imports. During World War II, Toyota flourished by selling trucks and buses to the army, but suffered from a series of financial problems after the war. The Bank of Japan stepped in, and the company was bailed out by a group of banks and their financial health was restored by 1952. After WWII, the name of