Marketing

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Title: Toyota In Foreign Markets
Subject: Marketing
Type of Paper: Assignment
Words: 2666
INTRODUCTION
Toyota officially Toyota Motor Corporation is an automobile manufacturer originally from
Japan. The group's headquarters is located in the city of Toyota. For the first quarter of 2012, it
claims to have sold more vehicles than any other manufacturer. It is in 2012 the 1st world's
largest automaker with a turnover of 265.7 billion U.S. dollars to Volkswagen and General
Motors. Toyota is at the origin of a production system original, the Toyota production system,
which gave birth to the Toyota way. Toyota is a global company whose goal is to pursue a
balanced growth that benefits all its employees, customers and suppliers, but also to the entire
local communities in which it unfolds.
Distributed today in over 170 countries, Toyota vehicles are produced according to the values of
the Toyota Way: continuous improvement and respect for all stakeholders, the values back to the
origins of society in nineteenth century Japan.
In the American market, Toyota started its first sales in 1957. At present, it is the largest
automobile company among other in this country. Toyota expands its business in over 25
countries. The main geographical regions are Asia and Europe as well as in North America.
Germany is one of the countries in Europe that Toyota operates in which is under the system of
social market and it has companies and industries it assists, like utilities, railroad, and
armaments; however, is usually considered a safe and sound environment for foreign investment.
In Australia, the company operates under the mix market system and common law system.
Toyota has its universal vision to esteem the various communities and people and providing the
new opportunities of marketing in Asia and aspires to get over 35 percent of vehicle by the
exploiting the growing markets. The company gains fans in most of the Asian countries as its
products are more inexpensive as compared to European vehicles. Malaysia and Thailand and
recorded sales increase of more than 10 percent whereas the Philippines and Taiwan contracted 8
percent and 17 present, respectively. The ASEAN market recovered to more than 85% of its
1996 peak as a whole. The manufacturer showed its largest sale share in Indonesia, Vietnam as 
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well as in Brunei. Moreover, it increased its market share in Taiwan Thailand, and Singapore.
The steadfast position of Toyota in the area led to sales of more than 200,000 cars in extensive
market of Asia in fiscal year 2002.
OBJECTIVE OF STUDY
Because Toyota operates in European and Asian market simultaneously and is constantly
expanding its business in these regions, they are facing some types of cultural problems in both
regions. The basic purpose to conduct this study is to provide detailed critical analysis in which it
compares the two cultures. Based on the research, the study also gives recommendations. In
doing so, the paper assesses the likely cultural problems that will need to be addressed to ensure
the successful future growth of Toyota. It also proposes a solution detailing the management
style, structure and reporting methods that will provide a solution to the issues identified.
MARKET FORIEGN MANAGEMENT
To make a way into a foreign market, there are different ways of entry in a market just because
of globalisation. However, when organisations cope with foreign markets, it is not very easy as
the firms must be equipped to overcome differences in issues related to language problems,
currency matters, cultural issues, and legal and regulatory regimes as well. Only the larger-scale
and sensible companies have the capital and knowledge to surmount these complexities on their
own. Most of other companies simply do not have the approaches to resourcefully and
effectively manage all those variables in an international market, devoid of a business partner in
the host country.
Across the globe, companies are internationalising in extremely increasing pace, and therefore
the selection of a right entry approach in an international market may have considerable and indepth effects on the success level and survival of a company. Companies, in the selections of a
right entry mode, are considerably influenced by some of the situational aspects as well as key
dimensions. The influencing aspects comprise the different factors, and socio-cultural differences
is one of the main factors among country risk, firm specific factors, laws and regulations at the
government level, and international experience. The key dimensions distinguishing market entry
methods are the altering levels of management control, obstacles to entry, equity investment, 
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