Toyota Motor Company Limited
Toyota Motor Company Limited
Term of Reference
This report will be focusing on Toyota Motor Company Limited, the world third largest automobile in unit sale and net sale, revealing the following questions:
* What are the significant events which have occurred in the automobile industry in the recent years?
* How does the event effect the organisation?
* What strategies are adopted by Toyota to contribute to the effectiveness of the company?
To answer the above questions, the evaluation and critically analyse the business as well as the strategies of Toyota will be examined. Uncovering the stated case study, this report will focus on; the automobile market, Toyota's background and its business, strategies of Toyota in both management and cross-cultural strategies, the recent financial performance of the organisation in domestic and overseas automobile markets, reasons and challenges encouraging Toyota to invest overseas.
Company's background
Toyota Motor Co. Ltd. (TMC) was first established in 1937 as a separated company from Toyoda Automobile Loomworks, the leading manufacturing of weaving machinery.1 The Toyota Automobile Loomworks was then headed by Sakichi Toyoda, the king of investors. TMC was then founded by Kiichiro Toyoda, Sakichi's son. It has since blossomed into the leader it is today.
The giant automaker faced its one and only strike in 1950. This event, however, supplied Toyota an important philosophy, giving it the labour and management system which helped Toyota to gain mutual growth and success in both domestic and overseas markets. Today, this philosophy is very important to the structure of Toyota.
Toyota's production system improved in the late 1950s, establishing the 'Toyota Production System.' This system became the major factor in the reduction of inventories and defect in the plants of Toyota and its suppliers. It also underpinned all of Toyota's operations across the world. It launched its first small cars in 1947. The operation outside Japan started in 1959 in Brazil and continued with growing network of foreign plants.
Toyota celebrated its 60th anniversary in August 1997. It believes that its local production can provide customers with the productions they need, giving it the stable and long-term growth. It also has a global network of design and research and development facilities, consisting Japan, North America, and Europe markets.
It is now the world's third largest manufacturer of automobiles in unit sales, but the first in its home. It plays an important role in the world's automobile market even it stays behind General Motor and Ford, respectively. It earns and gains profits in international and domestic markets. Nevertheless, it expands businesses to overseas and seeks profits there than its home's market. In this context will focus on its strategies, structure, domestic and overseas markets, the reasons persuading Toyota to join overseas market, and its plans for the future.
Toyota's business in brief
Since it was founded in 1937, TMC has contributed to the development of the automobile industry and society by providing people with quality vehicles. TMC manufactures automobiles in 25 countries and regions all over the world. Today, its vehicles are sold in more 160 nations worldwide under the brand names of Toyota, Lexus, Daihatsu, and Hino, manufacturing small cars to luxury sedans, full-sized pickup trucks, and crossover vehicles.
The recent significant success of Toyota is in the fiscal year ended March 31, 2002 in which TMC and its overseas subsidiaries sold 5.54 million passengers cars, trucks, and busses around the world. This helps position TMC as the world's number three in the term of automobiles sold, staying behind General Motor and Ford, respectively.
However, Toyota's overseas business signifies significant sign. According to its annual report 2002, Toyota gained profits from overseas markets than its domestic market, especially in North America where both profits and productions increase significantly. This is because Toyota's business philosophy is to achieve stable, long-term growth through the development of business activities that contribute to the society by focusing the importance of close relationships between individuals, society, the global environment, and the world economy. It believes that this instance will help it to share the benefits of its growth with everyone involving with Toyota, including its customers, shareholders, employees, and trading associates. Given the major changes that are anticipated in the operating environment for the automobile sector, Toyota intends to further accelerate the pace of its revolution aimed at reinforcing the foundations of the Company's business. 2
The world's automobile industry atmosphere
Today, there are varying brands of vehicles available for drivers to choose. Some countries which are unable to produce automobiles in the past now produce cars. This is because many countries can now afford the technologies which are needed for manufacturing vehicles. These technologies were expensive in the past, but have lower price in these days. This factor persuades many countries to go into car producing industry.
The world's automobile market is now very competitive. Drivers can easily compare price and quality. They have varieties of cars to choose, starting from up-scale, classy, sporty and practical, affordable, and conservative cars. The automakers try to differentiate their vehicles from those of the competitors and also target different groups of drivers. Drivers with low income that cannot afford such extra need of life can now afford them. Consequently, to survive in the automobile market, many automakers have to join the world's automobile market, not only domestic one. They have to plan and adopt the successful strategies.
Listing the world top automakers, Toyota plays an important role in both the world's automobile market and in its own home.
Toyota and world automobile industry
The world automobile's market is very competitive in these days. There are various numbers of automakers from many parts of the world. There are about 39 automakers in which comprising of Acura, Audi, BMW, Buick, Cadillac, Chevrolet, Chrysler, Daewoo Dodge, Fiat, Ford, GMC Truck, Honda, Hyundai, Infiniti, Isuzu, Jaguar, Jeep, Kia, Land Rover, Lexus, Lincoln, Mazda, Mercedes-Benz, Mercury, Mitsubishi, Nissan, Oldsmobile, Plymouth, Pontiac, Porsche, Renault, Saab, Saturn, Subaru, Suzuki, Toyota, Volkswagen, Volvo.3 However, the key automakers are obvious. Toyota is one of those cars that are tied as the well-known vehicles worldwide. This is because Toyota operates business in foreign countries, making its brand recognisable. Toyota gains a large share in global automobile's market. This is because Toyota has various types of cars available for all classes of drivers. It has small cars to luxury sedans, full-sized pickup trucks, and crossover vehicles. For example, Corolla vehicles are for middle class people while Camry sedans suit high-class drivers.
The main competitors of Toyota are General Motor and Ford who tie in the ranking of number one and two in the term of net sale and unit sale. However, this ranking is in the world automobile's market, but not in some regional automobile markets where Toyota stands at a higher ranking. For instance, Toyota vehicles are more popular in Asian countries as they are in the same region with Japan, making the Toyota's cars more affordable than that of American and European cars. This is because Toyota does not have to spend much money for transportation cost as the distances between Asian nations are shorter for cars from Japan to be sent to other Asian nations.
Figure 1.1 compares the sales of Toyota in Asia and other cars from 2001 to 2002.
Toyota's positioning
With many competitors, Toyota's positioning in the automobile's market is different from some of its competitors as they have different target segmentation. Conversely, Ford and General Motor are still its important competitors because they produce cars to serve same target group. Toyota also produces luxury vehicles to complete the automobiles of Volvo, Mercedes-Benz, Audi, and Porsche, for instance. Figure 1.2 shows the perceptual map of automakers, indicating the positioning of Toyota with its competitors.
Toyota's ranking in the term of unit and net sales in other region such as North America and Europe, where the automobile markets are very competitive, is still behind that of General Motor and Ford. Consequently, Toyota wants to expand its sales in these regions. The strategies that Toyota is now practicing and planning to adopt will be discussed more in depth. Toyota expects that these strategies will not only help to change its ranking, but also its sales in both domestic and overseas.
Toyota's performance in domestic and overseas in the recent years
Japan:
Toyota generate most of its profits domestically. Nevertheless, it lost some of its shares to foreign competitors who enter Japanese automobile market. According to the annual report of 2002, the market of Toyota in Japan is not as good as overseas market. Domestic vehicle sales, including Daihatsu and Hino vehicles, turned down 4.6 %, from 2.32 million units in the previous fiscal year to 2.22 million units in fiscal 2002. In spite of edging down less than one percentage point, to 42.2 %, the Toyota brand's market share, not include minivehicles, stay above the 40 % mark for the fourth consecutive year. Factoring in the minivehicle market, and including the Daihatsu and Hino brands, Toyota's share of the market was 38.2 % models such as Corolla, Vitz, Estima, and Crown continued to be the strong sales.
However, during fiscal 2002, impacted by the prolonged economic slump in the domestic market, vehicle sales in Japan's automobile sector were down on the previous year. On the other hand, Toyota successfully protected its market share of more than 40 % by proactively bringing new and fully remodelled vehicles to the market.4 This is an important reason why Toyota seeks market overseas as it need money for investing in its home in order to complete its competitors in Japan.
North America:
Recently the automobile market in North America is optimistic. In fiscal 2002, Toyota's strengthen vehicle sales in North America, including Toyota and Lexus vehicles, rose 2.7 % compared to the previous fiscal year's 1.73 million units, to reach a record high of 1.78 million units. This was attributable to the effects of a brisk market, together with Toyota's introduction of new models and the full remodelling of popular vehicles.
Toyota's relentless technological innovations aimed at improving fuel efficiency in all of its models are steadily growing. In 2001, with respect to fuel economy, Toyota models were highly ranked by the U.S. Environmental Protection Agency in a broad range of size categories, ranking as the fourth automaker that concerning about environment in which Honda is the first in this field. While the Prius hybrid sedan and the RAV4 the small SUV brought their respective classes, the ECHO compact sedan and the Avalon large sedan also received high evaluations. Also, the Prius hybrid car, which was launched in the U.S. market in July 2000, is gaining increasing recognition in North America. It sold 18,000 vehicles in fiscal 2002.
Toyota plans to continue bolstering its manufacturing base in North America with a view to achieving production capacity of 1.45 million vehicles during 2003. As part of these efforts, it is currently constructing a plant in Alabama to supply V8 engines for the Tundra, which is built at its Indiana plant, Toyota Motor Manufacturing, Indiana, Inc. (TMMI). Production in Alabama will get under way in 2003 and plans call for an annual output of 120,000 engines. Toyota has also decided to begin building the RX300 at its production base in Canada, Toyota Motor Manufacturing Canada Inc. (TMMC), from 2003. Furthermore, Toyota plans to construct a factory in Baja California, Mexico, to manufacture truck beds from 2004 for the Tacoma, which is currently being made by New United Motor Manufacturing, Inc. (NUMMI).5
According to the annual report, Toyota's business in North America is more optimistic than other regions. It produced new vehicles to serve this market and also plan to expand its business in this area, trying to compete with Ford in its own home.
Europe:
During the year of 2002, Toyota's vehicle sales in Europe continued to fare well, having sales rising from 690,000 units in the previous year to 730,000 units. The Company's market share expanded to 3.8 % on a calendar-year basis due to robust sales of the Yaris, which surpassed 210,000 units. Toyota also continued to extend its local production - it built 260,000 vehicles locally in fiscal 2002, compared to 180,000 in the previous year.
At Toyota's plant in the United Kingdom, Toyota Motor Manufacturing (UK) Ltd. (TMUK), where the Corolla and Avensis are built, it ...
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Europe:
During the year of 2002, Toyota's vehicle sales in Europe continued to fare well, having sales rising from 690,000 units in the previous year to 730,000 units. The Company's market share expanded to 3.8 % on a calendar-year basis due to robust sales of the Yaris, which surpassed 210,000 units. Toyota also continued to extend its local production - it built 260,000 vehicles locally in fiscal 2002, compared to 180,000 in the previous year.
At Toyota's plant in the United Kingdom, Toyota Motor Manufacturing (UK) Ltd. (TMUK), where the Corolla and Avensis are built, it manufactured 200,000 gasoline engines in the year under review. With TMUK slated to become its European engine production centre, Toyota also plans to bring together diesel engines there from 2003. In addition, progress was made in Toyota's joint venture with PSA Peugeot Citroën (PSA). In March 2002, Toyota Peugeot Citroën Automobile Czech s.r.o. (TPCA) was established in Kolin, in the Czech Republic, and plant construction under way, joining production of small cars will start from 2005 to target annual output of 300,000 vehicles.6
Toyota's goal is to achieve 800,000 unit sales and win a five % market share by 2005 accelerating its pace of localization in the European region. Mindful of this target, it founded Toyota Motor Europe (TME) in April 2002 as a holding company in Europe, in order to increase the efficiency of its European operations and augment the speed of business management decisions.
It also incorporated Diesel Clean Advanced Technology (D-CAT) which is cantered on its Diesel Particulate NOx Reduction system (DPNR), in 60 Avensis models as part of its environmental activities in Europe. The DPNR system is capable of simultaneously and continuously extracting particulate matter (PM) and nitrogen oxide (NOx) emissions from diesel exhaust fumes. Over a scheduled 18-month period, which started in March 2002, Toyota will monitor the performance of the vehicles in seven countries, including the United Kingdom and Germany.7
Toyota tries to expend its business in Europe since the automobile market in this region is quite competitive. From the plan and strategies that it has been adopting so far, it invests a lot of money in this market, hoping to gain share in Europe. However, its share in this market is lower than those of other European automakers.
Asia:
Toyota gains fans in Asian countries as Toyota's vehicles are more affordable than that of other European cars. The sales of ToyotaThe ASEAN automotive market expanded one % in calendar 2001. Thailand and Malaysia recorded sales increases of more than 10 % while Taiwan and the Philippines contracted 17 % and 8 %, respectively. The ASEAN market recovered to 88 % of its 1996 peak as a whole.
Toyota can display the largest share of sales in Indonesia, Thailand, the Philippines, Brunei, and Vietnam. It also extended its share of the markets in Thailand, Singapore, and Taiwan. Toyota's steadfast position in the area resulted in sales of 210,000 vehicles in the Asian market in fiscal 2002.
Sichuan Toyota Motor Co., Ltd. (SCTM) launched sales of the Coaster mid-size bus as the first vehicle produced locally in China to bear the Toyota badge in April 2001. 8
It is easy for Toyota to expand its business in this region as the culture is similar to the culture of Japanese. It also does not have to face the distance problem. Moreover, the trade integration between Asian nations also makes the business of Toyota move smoothly.
Oceania:
In calendar 2001, the Australian market remained steady and Toyota preserved its position as the leader of Australia's commercial vehicle market for the 23rd successive year. Moreover, Toyota sold most vehicles in New Zealand for the 14th consecutive year, recording unit sales in the Oceania market of 180,000 vehicles in the year under review.9
Middle East:
Sales in the Gulf countries remained brisk. In particular, sales of the Camry and the Corolla were favourable, outperforming initial expectations.10
Africa:
Representing Africa's largest market, South Africa's automobile market grew 8 %, having 370,000 vehicles sold in calendar 2001. Toyota which takes more than 20 % share in the South African market maintained its position as the country's top-selling brand for the 22nd consecutive year.11
Africa becomes the new area for investing business of many companies because Africa has many interesting factors that can attract foreign investors. The most important factor is low labour cost. Toyota also invests in this area because of this reason and it intends to expand its business in this region, moving from Asia to Africa.
According to the annual report 2002, the business of Toyota goes beyond well in overseas market. It has operations and expands its business in foreign countries than in its own home. Toyota decided to operate overseas because of several seasons; expanding sales, finding new markets, low transportation cost, low labour costs, expanding risks, competing competitors, and acquiring resources. The reasons and challenges that influence Toyota to engage business overseas will be discussed more in depth in the following topics.
Reasons for Toyota to engage international business activities
Toyota is now operating business in more than 160 countries and going to expand more businesses in other countries. What reasons encourage it to engage in international business activities? There are several main reasons that push Toyota to take on international business activities.
Expand sales:
First of all, Toyota wants to expand sales and make its name recognised. It produces vehicles matching people of every class. It has small cars to luxury sedans, full-sized pickup trucks, and crossover vehicles. For example, Corolla vehicles are for middle class people while Camry sedans suit high-class drivers. These various choices make people in foreign countries interested in buying Toyota's vehicles. When the number of people who are interested in buying Toyota's automobiles increase, it raises its sales by joining international activities.
Acquire resources:
Companies look for foreign capital, technology, and information that they can use at home (Daniel & Radenbaugh, 2001). Toyota opened Toyota Technical Center Inc. (TTC) the research and development (R&D) in California in 1977. This is not because the technologies and human resources in the US are better than in Japan. It is because the US government offers investing incentives to Japanese automakers to encourage them to operate business in the US to create jobs for local people. TTC is a dynamic company that conducts the design-engineering and development of Toyota products, particularly those developed for North America market.12 In this case Toyota gets both capital and information as a fringe benefit to bring back home. For instance, after the success of Toyota Prius the hybrid vehicles which developed by TTC, it brought the hybrid technology information back to Japan. It then launched FCHV-BUS2 the fuel cell hybrid bus having zero emission and low noise for Japanese people. This is also how Toyota employs workers in industrialised countries where employees have high salary.
Minimise risk:
Moreover, Toyota's vehicle sales in Japan have been declining gradually because foreign vehicles such as American and European cars share the automobile market in Japan.13 In contrast, vehicle sales of Toyota in North America, Europe, Asia, Central and South America, Oceania, and Middle East have raisen. The annual sales in calendar 2001 in the US market, for example, were buoyant, reaching the second highest level ever, at 17.18 million units.14 To minimize unstability of sales and profits in the domestic market, Toyota decides to try to take advantage of the business cycle. Figure 1.3 represents Toyota's global sales which are higher than domestic.
Affordability:
Finally, it is more competitive for Toyota to sell vehicles abroad. Its automobiles are more affordable than that of European and American cars in many countries, especially in Asia. Corolla in Thailand, for instance, costs £6,500 while Ford Escort costs around £10,500.15 Toyota also practices reducing price and raise quality of its campaign, making its cars more affordable.16
International Operations Control
Toyota's Major Factors
Toyota is an automobile company whose operations extend beyond its domestic operations shores is faced with lots of hurdles and environmental factors, the extent to which it is able to combat these factors will determine how successful its operations will strive globally.
Toyota is now expanding its business abroad and controlling operation overseas rather than in its home. What challenges influence Toyota to control operation internationally rather than domestically? It controls operation overseas for several major challenges.
Low labour cost:
The first reason is low labour cost. It is expensive to employ workers in Japan as it is a developed and industrialised country where people have high salaries and quality of life. Most countries that Toyota controls operation are in Asia such as China and the Philippines where people have low wages and education. Alternatively, Toyota operates R&D in industrialised countries as workers with higher educations are needed for controlling R&D. For example, Toyota operates R&D in the US where people have higher education and it then controls operations in countries where it can find low labour cost. Figure 1.4 compares the function of Toyota's affiliates and numbers of workers in industrialised and developing countries.
Transportation cost:
In addition, cheap transportation costs are another important challenge. When companies export products overseas, they usually use CIF transport system which includes cost, freight, and insurance. Exporters have to pay for all of the costs occurring from the shipment, making the products more expensive as importers will charge extra price (Hyman, 1983). In contrast, if companies control operation in the importing countries, they can use Ex-Work transport system instead of CIF. EX-Work is a transport system that purchasers can collect the products from factories of sellers. It is generally adopted by companies having subsidiaries and factories in importing countries. This is why Toyota has overseas affiliates and subsidiaries. If it invests in importing countries, it will not only save transportation cost, but also does not have to be concerned much about fluctuations of exchange rates (Ball, 1982).
Trade integration problem:
Furthermore, countries are now forming association and trade integration such as NAFTA (North America Free Trade Association) and EU (European Union). Such integrations remove tariff within the bloc, but impose tariffs against countries outside the bloc (Daniel & Radebaugh, 2001). This persuades Toyota to control operation in foreign countries, especially in European nations. Before 2000, the Europeans kept the Japanese from mounting any serious market competition by restricting the number of cars that could be imported to Europe. Thus, Toyota decided to operate in Europe to minimize tariff problems. For instance, the automobile market in Germany is very competitive, but the tariff made it difficult for Toyota to enter. In 1969, Toyota started to operate in Germany.17 It also holds 100 % of ownership.
Seek customers' demands:
Controlling operations in importing countries helps seek the needs of investing in business. Customers in each nation have different needs and people in the same region also have similar demands. If Toyota operates in one country, it can easily expand business and sell its automobiles to neighbouring countries. For example, people are now concerned about pollution problems. Research shows that carbon dioxide, which is mostly produced by cars, decreases ozone. Americans who are soft on environment want vehicles that do not harm the environment. Therefore, Toyota produces Prius, the world's first mass-produced and mass-marketed hybrid passenger car. 100,000 Prius vehicles can save about 20,000 to 30,000 kiloliters of gasoline annually, a 50,000 to 70,000-ton decrease in otherwise created carbon dioxide.18 Prius has steadily gained fans in North America and Europe where people have similar tastes. However, Prius vehicles are not available in some countries outside North America and Europe.
Find operation space:
Lastly, Japan has limited space and is not suitable for some businesses of Toyota. Some of Toyota's activities need bigger places to operate, so it has to operate in other countries. For example, Toyota controls two businesses in Australia. Toyota Motor Corporation Australia Limited controls production and sales of automobiles, parts, and industrial vehicles. Australian Afforestation Pty Limited, however, operates afforestation activities handling raw materials for paper making which is needed for the automobile production.19
Political factors
Toyota Motor Corporation is the world's third largest automaker, offering a full range of models mini vehicles to large trucks. Global sales of its Toyota and Lexus brands combined with those of Daihatsu and Hino, totalled millions units in year 2000, besides is 12 plants in Japan, Toyota has 56 manufacturing companies in 27 countries/locations and components. As of March 2002, Toyota employs 246,700 people worldwide (on a consolidated 15.1 yen trillion in the fiscal year to March 2002. Diversified operations include telecommunications, prefabricated housing and leisure boats.
Every country on whose soil Toyota operates will definitely face immense political challenges in view of the differences in policies, rules and regulations governing its corporate or business existence in that country. political policies are established, implemented and altered depending on the reaction from political parties, courts, government agency, legislators, the chief executor officer will try as much as possible to obtain within or influence as much as possible the policy of its interest either through working closely with the policy maker or engaging in lobby activities.
The system of government existing in a country in which Toyota operates, being it a democratic, aristocrat or another form will greatly challenge its survival. Toyota has been able to strive better on a democracy that engages freedom and other rules that safeguard individual and cooperate right. Although political risk can occur in politics as such governmental take over of property either with or without compensation, operational restriction that impede the company's ability to take certain actions and agitation that dispute sales.
The Legal factor
The legal system operating in a country in which Toyota dwells is closely related to the factors that affect its political system. For example, the degree of independence of judicial from the political process poses a major factor the legal existence, survival and growth of Toyota's existence in that region. National laws affect business especially in the areas of health and safety standards, employments practices, and patents and trade probations. Laws also exist that govern cross-border activities, such as the investment of capital, the payment of dividends to foreign investors and customs duties on imports. International laws such as treaties governing the cross-border transfer of hazardous waste, can also determine how a firm operates in transferring shipments across borders.
The Economic factor
The economic environment and its hydra-headed indices such as inflation rate, relationship between the power of domestic and international currency, national income, taxation, balance of payments, and availability of resources and so on pose great challenges to Toyota.
Global financial volatility, disruptive force part of 1990s is not likely to be eradicated in the next century, many lessons have been learnt about the need to avoid excessive financial exposure by borrowers and lenders. Progresses have been made to strengthen and provision of economic polices. However, large part of institutionalized capital is likely to play havoc with markets and currencies from time to time. Emerging economies will be particularly vulnerable. Investment is likely to pick up in those nations where Toyota operates that make the most successful and deeply rooted regulatory, legal, finance and corporate reforms
Social-Cultural factors
According to the management of Toyota "since its establishment, Toyota has been aiming to enrich society through car making ,with the intention of winning the trust and respect of the international community to maintain stable long term growth while striving for harmony with people, society and environment. This hydrous task is summarily a battle with society and culture, the challenge Toyota has taken up with its global vision 2010.
Toyota going global combined with changing demographics_ aging societies in advanced economies and growing numbers of young people in emerging ones will require companies as never before to pursue multicultural human resource policies and facilitate the international mobility of their best talent.
To improve consumer and social confidence, Toyota has put greater emphasis on transparency regarding information on the product and services, the environmental practices, treatment, workers, support for civic activities and political contributions of their company to enable the customer judge a company's behaviour and its business principles.
Technological factors
In addition to physical and societal factors faced by Toyota, the company is also faced with competitive and technological factors which affect the smooth running operations of the company.
Porter's approach to industry analysis
Michel Porter, an authority on competitive strategy, contends that a corporation is most concerned with intensify of competition within its industry. The level of this intensity is determined by basic competitive forces. "The collective strength of these forces", he contends, "determines the ultimate profit potential in the industry, where profit potential in the industry, where profit potential is measured in terms of long run return on investment capital". In carefully scanning its industry, the corporation must assess the importance to its success of each of the 5 forces, those are as follows: threat of new entrants, rivalry among existing firms, and threat of substitute products or services, bargaining power of buyers, bargaining power of suppliers. The strong each of these forces, the more limited companies are in their ability to raise prices and earn greater profits. A high force can be regarded as a threat because it is likely to reduce profits. A low force in contrast, can be viewed as an opportunity because it may allow the company to earn profits. In the short run, these forces act as constraints as a company's activities. In the long run, however, it may be possible for a company, through its choice of strategy, to change the strength of one or more of the forces to the company's advantage.
Threat of new entrants:
New entrants to an industry typically bring to its new capacity, a desire to gain market share and substantial resources. They are, therefore, threats to an established corporation. The threat of entry depends on the presence of entry barriers and the reaction that can be expected from existing competitors. Global entrants may pose a threat to Toyota's market share, especially from other Asia, Europe & U.S.A. car market leaders. Toyota as global car manufacturing company started its production of vehicle outside Japan in 1959. Toyota has established its own car manufacturing plant in different countries in Europe and successfully operating its business activities. In terms of car manufacturing company index, the following companies are as follows:
) Ford.
2) BMW.
3) Jaguar.
4) Vauxhall.
5) Mitsubishi.
6) Suzuki.
Ford, BMW & Jaguar already has secured market position in the British market environment, therefore their threat is made all the greater as they now have knowledge of the British market system and are building their customer and loyalty base. On the other hand Toyota is trying to adopt the market share in Europe. Toyota as a multinational enterprise has already launched its product to the online market and is currently mature stage of online product cycle.
However Toyota's online venture is in mature stage besides this they are always aware of what the potential threats to its business are. More established online car manufacturing company, who have already identified and possibly combated the risks to their market share may gain a competitive edge here, like rival Ford.
In a price sensitive and competitive industry achieving profits where prices are nailed down, low cost production is particularly difficult, especially if there is elasticity of demand, the loyalty of the customer may not be gained or retained unless cost incentives and quality assurance are customary. The purpose of online sales facilities is to boost more sales and gain profit.
Customers are prone to repeat orders, the backbone of business profit, therefore switching costs is not such as threat if brand loyalty is a prevalent sales feature. Therefore Toyota may be viewed as a threat to other car manufacturing company such as Toyota.
Threat of substitute products or services:
Substitute products are those products that appear to be different but can satisfy the same need as another product. Substitute products on the market could pose a threat to Toyota's if customers are price sensitive. Ford, BMW, Vauxhall, Mitsubishi etc all private goods at affordable prices and target the lower end of the quality conscious customers. If Toyota's car prices are competitive as a result of the quality of the vehicle or service being acceptable inferior and the production cost are low, this will ultimately challenge Toyota's cost leadership pricing strategy.
The threat of cheap imitations may an irresistible challenge for the customers, if brand loyalty is not an issue and so may be able to benefit from the cheaper prices if willing to compromise quality. The more indirect the substitute and the more cleverly packaged the imitation, the less likely that the price and performance will be comparable and switching costs for customers will be made easier.
Bargaining power of buyers:
Buyers affect an industry through their ability to force down prices, bargain for higher quality or more services and play competitors against each other. The customer is ultimately king when they are car companies' consumers. They can exert more power over Toyota's online than offline as the technology involved offers them the freedom of choice not just of product but also of vehicle companies as it is convenient to switch. Brand loyalty is an important issue as most end users will stay with the same product and most likely will switch to online and stay loyal. However the convenience factors of online purchasing makes it easy for consumers to target specific brand products from other online car manufacturing companies, there by reducing the amount of overall spend per car manufacturing company's as this is now split among the choices available.
Bargaining power of end users is not necessarily exerted on line regarding price sensitively of goods. The sensitively surrounds the pricing strategy used by Toyota's as cost leadership and differentiation. Toyota's consumers are looking for quality goods and a good serve.
Bargaining power of suppliers:
Suppliers can affect an industry through their ability to raise prices or reduce the quality of purchased goods and services. Toyota's look to their internal means and market share to determine whether they have power over the supplier and exert to gain their competitive edge. Suppliers are forced into comprise, lowering their already competitive prices. Toyota also looks to improve their own efficiencies in choosing their suppliers. This strategy is entitled, together faster, simpler. A programme to improve the quality levels of service from the supplier the force is to then pass this on to the customer. As the industry is subject to inflation, interest rate increases, exchange rate fluctuations and labour laws, Toyota as a car manufacturing company aware of their low cost strategy and look to competitive pricing to begin with the supplier, so that the internal competing demands for finances are prioritised.
Rivalry among existing firms:
In most industries, corporations are mutually dependent. A competitive move by one firm can be expected to have a noticeable effect on its competitors and thus may cause relation or counter efforts. For example: car manufacturing industries dominated by Toyota, Honda, BMW, Ford, and jaguar increased all level of competitive activity to such an extent that any price reduction or new product introduction is now quickly followed by similar moves from other car manufacturing companies. The same is true of prices in the U.S. computer industry.
Porter contends, it is important to look beyond one's immediate competitors, as there are other determinants of profitability. Specifically there might be competition from substitute products or services. Buyers may perceive these alternatives as substitutes, even through they are part of a different industry. An example would be plastic bottles, cans and glass for packaging soft drinks. So not all competition lies the same industry.
There may also be a potential threat of new entrants, although some competitors will see this an opportunity to strengthen their position in the market by ensuring, as far as they can, customer loyalty may be built out of trust and familiarity possibly based on quality. Finally, it is important to appreciate that companies purchase from suppliers and sell to buyers. If these forces are powerful they are in a position to bargain profits away through reduced margin, by forcing either costs increases or price decreases.
Strategies Adopted By Toyota
Since it was established in 1937, Toyota Motor Corporation has contributed to the development of the automobile industry and society by providing people with automobiles. Toyota is now world's third largest manufacturer of automobiles in unit sales and net sales and has established a well-balanced sales structure that is strategically positioned between the world's three major markets. By fiscal 2002, Toyota's consolidated world sales are 5.54 million units of which the Japanese accounted 2.22 million units, North America 1.78 million units and Europe and other regions 1.54 millions units.
Toyota's central philosophy is to grow in harmony with society producing automobiles that enjoyed and cherished the world over. Now-a-days in every corner of the world the drivers have significant diverse needs. Some are looking for an environmentally friendly vehicle while others emphasis on safety and performance. Then there are people who look beyond the vehicle itself to value added services.
Therefore Toyota's success is lies within its strategies, according to the company Annual Report 2001 these include:
i) Focusing investment on the development of new technologies for the environment, safety and information and communications.
ii) Promoting further globalisation within Toyota.
iii) Enhancing cost competitiveness to provide higher quality products and services at a more affordable price
iv) Expanding Toyota's value chain with a specific focus on building financial operations.
Analysis of The Four Key Strategies
Focusing investment on technological development:
From the late 1990s, the global auto industry entered an era of tough competition in technological development. This new era is all about the speed of commercialisation new technologies that enhance not so much the vehicles themselves, but their interaction with society and individual lives. As a global company Toyota is at the forefront of these technological innovations. Based on its recent R&D activities, the company is now working to build cars that accelerate a beneficial relation between people, cars and society.
Nevertheless Toyota is tackling the construction of advanced transport system through its Intelligent Transport System (ITS) technologies to improve the performance of its vehicles. During fiscal 2002, the company made progress towards the practical application of its Intelligent Multimode Transit System (IMTS). Using this system the vehicles are driven automatically, running single- file on special roads, which is widely utilized for the public transport sector. For example, driverless operation of three buses together in a single-file "platoon" has been underway since October 2001 at a theme park on Awaji Island in Hyogo Prefecture, Japan.
Besides in recent years the company has launched Fuel Cell Hybrid Vehicle, FCHV-5 (2003), Estima Hybrid (2001), Pirus (1997). The advantages of these newly developed models are: more than one source of fuel can be used and they are not causing Global Warming.23
Promoting further globalisation:
One of the key strategies of Toyota is to deliver to its customer in every corner of the world high quality, affordable vehicles with more attractive features. This absolute commitment is the driving force behind Toyota's accelerating globalisation.
The company has a well regional balanced marketing network comparing to its competitors. Each of its three core regions- Japan, North America, and Europe & Other regions- represents one-third of total net sales.
Therefore through insistent localization of its operations, Toyota is now going ahead to work on the development of automobiles that met the diverse needs of different regions while at the same time determined to benefit local communities.
Enhancing cost competitiveness:
At present there is fierce competition in automobile industry, which appears ready to heat up, even further in the 21st century. Overcoming two seemingly contradictory challenges, raising quality and lowering cost, Toyota motor company is entirely successful to face the competition created by its competitors.
To provide its customers "the right cars, for the right place, at the right time", Toyota is adopting various cost reduction strategies ingrained in various steps of manufacturing process such as development, production, and purchasing. One of these cost-reducing drives is CCC21 (Construction of Cost Competitiveness for the 21st century), which is being currently implemented by Toyota. This three years cost reduction programme, initiated in July 2000 aims to achieve large-scale cost reduction for about 170 components that account for 90 % of Toyota's total component purchasing costs (Annual report 2001). For example, in purchasing, Toyota is currently adopting an initiative called "Four-in-one" Concurrent Frontloading Concept. By using this concept, company is working to achieve its enduring mission of purchasing. (Annual report 2001)
Expanding the value chain:
Toyota's goal is to become a Total Mobility Services Provider. The company wants to be a life long partner to its customers, offering them a full range of services that reach beyond the automobile. To do so the company is connecting with customers more than ever before. In this way Toyota tries with its best to bring a greater comfort and convenience to the customers' lives, and the process reinforces its corporate value chain.
Nevertheless, Toyota is currently expanding its value chain by providing its IT business. Followings are the major initiatives form the crux of its actions:
> The Gazoo.com automotive e-commerce site.
> The TS3 CARD, which will cover the way for the company's entry into the business of processing and setting consumer purchases.
> Intelligent Transport System (ITS) implemented at commercialising the next generation of highway travel.
> Information terminals designed to add value to automobiles through increasingly sophisticated car navigation systems.
> Network to support the above four initiatives.
It is evident from launch of the TS3 CARD, a new Toyota credit card, that company's goal is to support customers throughout the life of their vehicles and offer one-stop financial services. In particular, Toyota always seeks to offer a wide range of services and link them together; thereby creating synergies that will yield great convenience and benefits.
Toyota's financial review
As Toyota starts to operate business overseas, its name becomes recognised, making its sales increase.
Financial Audit
Liquidity Ratios
These groups of ratios will measure the solvency of Toyota's. It reflects its ability to generate the cash necessary to pay its bills and other short term financial obligations.
* The Current Ratio
This is Toyota's ability to pay its current liabilities out of its current assets. Toyota's current ratio is 2.9: 1, which is quite healthy, as the rule of thumb dictates that a ratio of 2 or greater is good .The ratio is slightly increased than the 2.7: 1 in 2001.
* The Acid Test (Quick Ratio)
This is a more rigorous test to measure Toyotas ability to pay its current liabilities out of its current assets less its inventory. The reason for subtracting the inventory is that it is difficult to convert it into cash as it may be obsolete, and in some fraudulent cases, it may not even exist. So this test establishes the asset that can be turned into cash quickly.
The acid test for Toyota is 1.9: 1, which is a positive indicator of the company's ability to meet its liabilities. A ratio of 1: 1 or higher is regarded as acceptable and Toyota's ratio is nearly 2. : 1, although it is a drop from last year's 2: 2: 1 ratio.
Activity Ratios
These ratios indicate how efficient Toyota is at using its resources to generate revenue. The faster and more efficient Toyota can generate cash, the stronger it is financially, and the more attractive it is to investors and lenders.
Dept Ratios (Gearing ratios)
These ratios are a measure of how much debt Toyota is carrying and who is financing the debt. Debt is good to finance growth or to plug short-term holes in cash flows but too much debt can be a financial drain on Toyotas financial resources.
Debt to Equity Ratio
The debt to equity ratio measures the extent to which Toyota is financed by outside creditors versus shareholders and owners.
A high ratio, anything above 1.0, is considered a high risk. Toyotas debt to equity ratio is 1.0.9, which considerable which means this is an improvement from last year when the ratio was 1.1, the change is not that great to cause concern.
Debt to Assert Ratio
This is a measure of how much Toyota's assets are financed by outside creditors versus the percentage that is covered by the owners. The debt to asset ratio for Toyota is 0.4. A 24% gearing ratio is considered acceptable on scale where anything above 0.5 may be seen as a sign of trouble. There is no improvement from last year's ratio.
Profitability Ratios
These ratios indicate the effectiveness of management in controlling expenses and earning a reasonable return for shareholders and owners.
Profit Ratio.
The profit ratio is a measure of how much profit Toyota generates for each yen of revenue after all costs of normal operations are accounted for. Toyota's profit ratio rose to 2% in 2002 compared to 1.5% in 2001.
A profit ratio of 2% is considered satisfactory in the manufacturing industry where money is made by turning over high volumes of production quickly. This indicates Toyota's ability to generate profits after costs of operating its production.
Financial Strategy
Toyota's financial strategy is concerned with increasing shareholders funds .Its corporate mission is to develop its manufacturing operations to produce the automobiles demand by a diversity of regions and by changing times, from a standpoint that is both global and local. In this way , Toyota will enhance the lives of people around the world while continuing to grow in conjunction with society.
Finances and the way they are managed can be a key determinant of strategic success. J.Ellis and D. Williams (1993), corporate strategy and Financial Analysis, Pitman, maintain,..."From a shareholders point of view, what matters most is the cash generating capability of the business since this determines the ability to pay dividends in short term and to reinvest for the future (which in turn should enable a future flow of dividend payments)" Toyota's strategy appears to reflect with this way of thinking.
In July 2000, Toyota established Toyota Financial Services Corporation (TFS) to take overall control of their financial subsidiaries at home and abroad and comprehensively enhance their financial service operations. The mission of Toyota's financial services operations. At present they are providing automobile sales related financial services to more than 3.5 million people in around 22 countries.
The mission of Toyota's financial services is to fulfil the diverse financing needs of customers with respect to car loans and insurance, when they purchase one of their vehicles.
However in the year to March 31,2002, trading on the Tokyo stock exchange accounted for about 94.72% of the aggregate trading volume on all five stock exchanges on which Toyota's shares are listed in Japan.
The high levels of investment also serve to maintain investor confidence and meet dividend expectations of increased returns. Investment into the company has shown to have a positive affect on the company's share per price value, which has increased from 399.5 at 30 March 2002. Figure 1.5 shows Tokyo Stock Exchange.
Shareholders fund increased by 97 million to 4,848 million an increase of basic earnings per share increased by 31.7 .The total proposed dividend for the year is 14.84 which represents an increase of 3.6% on last year dividend cover of 1.3 times .The decision to propose an increase in the final dividend reflects the Director's confidence in the group future growth prospects.
Toyota has adopted a cost efficiency drive with the purposes of supporting the financing of its growth strategy. Through the correct usage of its core competences, who are able to use its resources effectively and efficiently, key position of cost leadership and quality differentiation is achieved which then leads to increased profits and a larger market share.
Dealing with cultural barriers
Controlling business in a different environment, Toyota cannot avoid cultural barriers of language and religion. Japanese are Buddhists and they also pride in their own nation and language. These are the obstacles for Toyota when managing business in countries having different cultures. Nevertheless, Toyota has some efficient solutions to cope with cultural barriers.
Employ workers with Japanese literacy:
The first solution is hiring local workers having Japanese literacy to work for Toyota's affiliates operating in foreign countries. This helps business move smoothly. However, it still keeps high-income positions for Japanese employees who will control local employees in order to protect its intangible assets. In Indonesia, for instance, Toyota Indonesia hires employees who have Japanese literacy. Applicants with Japanese degrees and a familiarity of Japanese culture will have an advantag.20 This will not only eliminate the culture problem, but will also make local people think that Toyota creates jobs for them, making people have positive views toward Toyota.
Fit into new environment:
In addition, a multinational firm must fit into the national identity where it operates (Robinson, 1973). Toyota fits itself into the national identity where it operates in by respecting and following the culture and tradition of each nation it functions in. For example, Toyota Thailand sends its representatives to join the celebrating parade and pay courtesy to His Majesty the King of Thailand on his birthday. This is because Thais love and always pay royalty to the royal family.21
Reward the communities:
Lastly, Toyota strives to improve the communities where it does business by supporting organizations that focus on education, social, services, and health cares. This helps make people think that Toyota is not only taking things from them, but also giving things back. Toyota USA donates more than 1.9 million dollars to Relief Effort, the health organisation. It also grants scholarships to a graduate from one of the area's high schools in Indiana, USA.22 Mr. Yoshimitsu Ogihara, the president of Toyota Industrial Equipment Manufacturing Inc., Indiana, USA said, "These gifts are the ways Toyota can give back to the community that has given us so much." These are the good ways to cope with cultural barriers of language and religion. As long as Toyota is concerned about the community it operates in, the cultural barriers cannot obstruct its business.
Conclusion
As you can see, Toyota plays an important role in the world's automobile market, placing as the world's third automaker in the term of net sale and unit sale. This is because Toyota has efficient strategies and ways for coping with cultural barriers. It also looks ahead in the future aiming to be the best automobile in automaker industry. This innovative concept and strategy will help Toyota to produce the vehicles that make people proud of. It is not surprised to learn if Toyota cars are known as the automobiles of the future.
Appendix
Figure 1.1 compares Toyota and other vehicles' sales in Asia from
2001 to 2002.
2002
2001
2001
SHARE
TOYOTA
6,640
3,716
78.7%
26.9%
HONDA
2,528
2,013
25.6%
0.2%
NISSAN
2,953
2,346
25.9%
1.9%
MITSUBISHI
3,121
,062
293.9%
2.6%
MAZDA
456
432
05.6%
.8%
ISUZU
5,983
4,542
31.7%
24.2%
OTR.JPN
00.0%
0.0%
KIA
88
47
27.9%
0.8%
HYUNDAI
0
30
0%
0.0%
DAEWOO
0
0
%
0.0%
BENZ
330
80
83.3%
.3%
B.M.W.
287
286
00.3%
.2%
CHEVROLET
74
231
75.3%
0.7%
VOLVO
02
81
25.9%
0.4%
VOLKSWAGAN
3
29
44.8%
0.1%
FORD
,245
,569
79.3%
5.0%
PEUGEOT
59
37
59.5%
0.2%
HINO
93
95
203.2%
0.8%
SUZUKI
10
37
297.3%
0.4%
CHRYSLER
1
37
29.7%
0.0%
N-DIESEL
35
27
29.6%
0.1%
TOTAL
24,727
7,031
45.19%
00
Source: http://www.toyota.com
Figure 1.2 Perceptual map of brand image of automakers
Up-Scale, Classy
? Mercedes
? Lincoln ? Porsche ? Cadillac ? BMW
? Volvo ? Saab
? Chrysler
? Buick ? Honda
Conservative Sporty
? Nissan
? Toyota
? Ford
? Chevrolet
? Dodge
? Plymouth
? Hyundai
Practical, Affordable
Source: Schewe, Charles and Hiam, Alexander (1998). "The Portable MBA in
Marketing. John Wiley & Son, Inc."
Figure 1.3 shows the balanced global sales of Toyota
Source: http://www.toyota.co.jp/IRweb/invest_rel/advertorial
Figure 1.4 presents information of Toyota's overseas affiliates
Country/location
Company
Ownership
Main business
Employees
France
Toyota France S.A.
TMC 100%
Sales of automobiles and parts
36
Toyota Europe Design Development
TMC 100%
Styling design
36
Indonesia
P.T. Toyota Bio Indonesia
TMC 90%, Mitsui & Co., Ltd. 10%
Crop plantation
79
P.T. Toyota-Astra Motor
TMC 49%, Local 51%
Production and sales of automobiles and parts
4,780
Thailand
Toyota Motor Thailand Co., Ltd.
TMC 86.4%, Others 13.6%
Production and sales of automobiles and parts
3,038
Siam Toyota Manufacturing Co., Ltd.
TMC 96%, Local 4%
Production and sales of automotive parts
793
South Africa
Toyota South Africa (Pty.)
TMC 74.9%, Others 25.1%
Production and sales of automobiles and parts
6,948
U.K.
Toyota (GB) PLC
TMC 100%
Sales of automobiles and parts
488
U.S.A
Toyota Motor North America, Inc.
TMC 100%
Holding company of US subsidiaries and affiliates
71
Toyota Technical Center, U.S.A., Inc.
TMC 80%, TMS/U.S.A. 10%, Aisin Seiki Co., Ltd. 5%, Denso Corporation 5%
Research and development of automobile technologies
575
Calty Design Research, Inc.
TMC 80%, TMS/U.S.A. 20%
Styling design
53
Source: http://www.toyota.co.jp/en/ci.html
Figure 1.5 shows Tokyo Stock Exchange
Toyota's Share Price and Trading Volume on the Tokyo Stock Exchange*
*
In the year to March 31, 2002, trading on the Tokyo Stock Exchange accounted for about 94.72% of the aggregate trading volume on all five stock exchanges on which Toyota's shares are listed in Japan.
**
Simple average of monthly highs and lows
Footnotes
"History." [online] (cited 6 February 2003) Available from <URL://www.toyota.co.jp/IRweb/corp_info/history/main.html>
2 "R&D Locations." [online] (cited 6 February 2003) Available from <URL://www.toyota.com/about/operations/design-rd/locations/index.html>
3 "Automakers" [online] (cited 24 March 2003) Available from <URL://www.autoadvisor.com >
4 "Business Review" [online] (cited 14 March 2003) Available from <URL://www.toyota.co.jp/IRweb/invest_rel/annualreport>
5 "Business Review" [online] (cited 14 March 2003) Available from <URL://www.toyota.co.jp/IRweb/invest_rel/annualreport>
6 "Business Review" [online] (cited 14 March 2003) Available from <URL://www.toyota.co.jp/IRweb/invest_rel/annualreport>
7 "Business Review" [online] (cited 14 March 2003) Available from <URL://www.toyota.co.jp/IRweb/invest_rel/annualreport>
8 "Business Review" [online] (cited 14 March 2003) Available from <URL://www.toyota.co.jp/IRweb/invest_rel/annualreport>
9 "Business Review" [online] (cited 14 March 2003) Available from <URL://www.toyota.co.jp/IRweb/invest_rel/annualreport>
0 "Business Review" [online] (cited 14 March 2003) Available from <URL://www.toyota.co.jp/IRweb/invest_rel/annualreport>
1 "Business Review." [online] (cited 6 February 2003) Available from <URL://www.toyota.jp/IRweb/invest_relreport/annual_report02>
2 "Interview with the President." [online] (cited 6 February 2003) Available from <URL://www.toyota.co.jp/IRweb/invest-Rel/annualreport>
3 "Automotive Operations." [online] (cited 6 February 2003) Available from <URL://www.toyota.co.jp.IRweb/invest_rel/annualreport>
4 "Business Review." [online] (cited 6 February 2003) Available from <URL://www.toyota.jp/IRweb/invest_relreport/annual_report02>
5 Japanese cars in Thailand cost around 400,000 Baht - 500,000 Baht whilst American and European cars price around 650,000 Baht - 1,000,000 Baht
(£1 = 68 Baht).
6 "Interview with the President." [online] (cited 6 February 2003) Available from <URL://www.toyota.co.jp/IRweb/invest_rel/annualreport>
7 "Major overseas subsidiaries." [online] (cited 6 February 2003) Available from <URL://www.toyota.co.jp/IRweb/navi_ci_cp.html>
8 "Outline of Toyota." [online] (cited 6 February 2003) Available from <URL://www.toyota.co.jp/navi_ci_cp.html>
9 "Major overseas subsidiaries." [online] (cited 6 February 2003) Available from <URL://www.toyota.co.jp/IRweb/navi_ci_cp.html>
20 "Jobs Offer." [online] (cited 19 March 2003) Available from <URL://www.toyota.astra.co.id/about/jobs.asp>
21 Thais celebrates their National Day and Father Day on His Majesty the King's birthday which is on December 5 of every year. The government encourages all government and private organisations to send representatives to attend the celebrating parade to show royalty to the King.
22 "Civic Community." [online] (cited 12 February 2003) Available from
<URL://www.toyota.com/about/community/civic_communication/index>
23 "Interview with the President." [online] (cited 16 March 2003) Available from <www.toyota.co.jp/IRweb/invest_rel/annualreport/annualreport/accelarating>
References
Ball, A. (1982: 105-111). International Business: Introduction and Essentials. Publishing Company, New Jersey.
Daniel, D. and Radenbaugh, Lee H. (2001: 4-6, 228-249, 310-316). International Business: Environments and Operations. 9th Edition. Prentice Hall, New Jersey.
Ellis, J. and Williams, D. (1993). Corporate Strategy and Financial Analysis. Pitman.
Hyman, Stefon (1983: 63-75). International Business and Multinational Enterpris. 3rd Edition. Irwin Publishers, Connecticut.
Parry, T.G. (1973: 1-3). The International Firm and National Economic Policy: Survey. 2nd Edition. Jai Press, New York.
Parry, T.G. (1979: 6-12). The Multinational Enterprise: International Investment and Host Country Impact. Jai Press, New York.
Robinson, Richard (1973: 207-209). Nationalism and the Multinational Enterprise. Ocean Publications, New York.
Schewe, Charles D. , and Hiam, Alexander (1998:222 - 227). The Portable MBA in Marketing. 2nd Edition. John Wiley & Son, Inc., New York.
Electronic sources
<URL://www.toyota.astra.id>
<URL://www.toyota.co.jp>
<URL://www.toyota.com>
<URL://www.toyota.co.th>
<URL://www.toyota.co.uk>