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1-3 Journal: Company Research and Selection
October 13, 2021
Toyota Motor Corporation Overview
Toyota Motor Corp. is a Japanese multinational automobile maker that became a public limited company in 1999 (Nkomo, 2019). The automotive manufacturer has its headquarters in Toyota City, Aichi, Japan. Kiichiro Toyoda founded the firm and incorporated it in 1937. Toyota is among the significant automotive manufacturers and manufactures nearly ten million vehicles annually. The firm produces cars under brands like Lexus, Daihatsu, Ranz, Hino, and Toyota (Toyota, n.d.). Toyota Motor provides financial services and develops and produces automobiles and related products like vehicles, air conditioning compressors, engines, stamping dies, and electronic devices and components. It also provides textile machinery and material handling equipment.
Customer Base
Toyota’s target consumers fall in the range of 30-60 years, and the target is primarily middle-income earners. Toyota Motor Corporation markets and sells its products and services to global consumers, and it serves consumers worldwide. Toyota is among the top players in the global automotive industry, and as such, it helps millions of global consumers. The Toyota Motor Corporation primarily serves individuals, and this is because the vehicles have minor to moderate cargo space.
Nonetheless, Toyota Sequoia SUV is considered one of the best cars with large cargo spaces. Other vehicles like Toyota RAV4, Toyota C-HR, Toyota Yaris, Toyota Venza, Toyota Landcruiser, Corolla, Prius, Sienna, and Avalon, among many others, are not primarily designed to serve businesses but individuals (Toyota, n.d.). The company is known to design and produce highly efficient small cars for individual use, and such vehicles have found significant favor among the extensive network of global consumers.
During their pomp and glory, Toyota has witnessed a fair share of issues affecting overall success in the past years. One of the obstacles that Toyota Motor is reputational damage. In the recent past, Toyota Motor Corporation announced the move to recall different Toyota models from the market. The global fuel pump recall totaled 5.8 million vehicles for defects that could stall the vehicles (Shepardson, 2020). The recall is informed by facts and concerns that a faulty low-pressure fuel pump might make the cars stall, rendering the vehicles unable to restart.
The recall caused the firm millions of dollars and affected global consumers’ confidence who favor Toyota products. The company’s reputation for quality dropped significantly, and it will take some time to improve the quality and impression ratings (Shepardson, 2020). The reputation damage for quality is an issue and obstacle likely to affect Toyota’s future success. This might happen because consumers will switch to rival brands offering quality, safety, and reliable vehicle models. The barrier, which is reputation damage for quality, will affect the company’s revenue.
Toyota will spend extra money on rectifying the safety issues for the recalled cars and on PR, advertising, and marketing to restore its former glory and brand equity. Persuading consumers to remain loyal will talk a lot of grace and funds to hire intense PT and marketing teams to reassure consumers of their safety. The revenue that would have otherwise been saved and used to make further expansions would be lost in the repairs. Also, its position in the market is likely to be impacted by the obstacle. Toyota is among the most significant market players with many shares in the automotive industry (Toyota, n.d.). However, reputation damage will reduce consumer confidence, making them switch to other players in the market. With consolidated revenue and market share, Toyota Motor will require considerable investments to pull through and ensure its future success.
References
Nkomo, T. (2019). Analysis of Toyota Motor Corporation. https://scholar.harvard.edu/files/tnkomo/files/analysis_of_toyota.pdf
Shepardson, D. (2020, October 28). Toyota recalling 5.84 million vehicles for fuel pump issue. https://www.reuters.com/article/us-toyota-recall-idUSKBN27D2AJ
Toyota (n.d.). Automobile Products and Services. https://www.toyota-industries.com/products/automobile/index.html
Toyota (n.d.). Overview; Company Information. https://global.toyota/en/company/?padid=ag478_from_header
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