Toyota: Business Details, Marketing Strategies And Analysis
Fundamentals and financials:
Market cup $179 billion
Revenue ¥28.06 trillion
Revenue/employee ¥75.44 million
Operating income ¥2.85 trillion
Profit ¥2.31 trillion
Total assets ¥47.42 trillion
Total equity ¥17.22 trillion
Net income ¥1.892 trillion
Shares outstanding 1.487 billion
Annual earnings/share ¥1258
Company management: Takeshi Uchiyamada (Chairman) Shigeru Hayakawa (Vice Chairman) Akio Toyoda (President)
Toyota Motor Corporation
Toyota Motor Corporation is a multinational company that manufactures cars, buses, trucks and even robots to a massive worldwide customer base. It was the first car manufacturer to produce 10 million vehicles annually, and it hasn’t lowered its production output since 2012.
It is currently the fifth largest corporation by overall revenue and the first among automotive enterprises.
Initially founded in 1937, the business is currently headquartered in the aptly named Toyota City, Aichi Prefecture. Even though Japan’s post-war economy has been a huge obstacle in its path, it has been ramping up production each year for the past 70 years.
More historical data can be found below.
This is a publicly traded company, and most recent financial statements tell an interesting story. The corporation generated total revenue of roughly $245 billion with $202 billion of that being the cost of revenue. This makes the company’s gross profits to be around the $42 billion mark.
Operating income is said to have been $17 billion. Even though the company is in a healthy economic position, many departments predict a slight decrease across all the key performance metrics: net revenues, operating income, income before taxes, and net income attributable to Toyota Motor Corporation. These stats are not a surefire way to predict financial results, but the outlook is shared by many financial experts.
The research and development expenses are a mystery, but given the fuel-efficient focus the company has adopted, it’s fair to say its research institutes around the globe are well-financed.
But there’s no need to second-guess since there are materials that will shed light on all relevant details below.
Massive revenue figures are a clear indication that the marketing strategy that’s in place functions at full capacity.
The company uses an optimal marketing mix and has a yearly marketing budget of $2 billion just for the US alone. Toyota promotes in a few key ways: ads, PR, promos, personal & direct selling.
In order to understand the intricacies of their marketing campaigns, examine these associated materials.
Structure & Operations
The corporation conducts business in all major regions, with the small exception of a few countries.
The total number of employees working at the company is claimed to have been 348,877 in 2016.
Toyota owns over 540 consolidated subsidiaries and conducts business with over 220 affiliates; it also distributes most of its products either through dealerships or retailers, dealerships are where most of the transactions occur, however.
More about structure & operations in the following works.
- Total Quality Management Toyota
- International Business: Toyota Business Model
- Operations Management at Toyota
- Operational Risk and Toyota
- Toyota management
Given the scope and the presence in all regions, it’s unsurprising that Toyota has been tremendously successful both worldwide and in Japan.
There are many associated factors to consider before making an unbiased estimation of how this motor company became so successful. Thankfully, below you’ll find a variety of analyses to help you. Explore trends and all relevant details.