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Competitive Priorities of Toyota

In: Business and Management

Submitted By lekhoalong
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Competitive priorities can be viewed as the key capabilities that operations must improve and develop in order to compete successfully in a market segment. It also requires a marketing effort and multifunctional activities according to the needs of each market segment and translates those needs into the desired ability, or competitive priorities. (Lee and Larry, 1999). There are eight priority compete for the work, divided into four group are cost, quality, time and flexibility. (Lee and Larry, 1999). However, not all the situation that the firm can apply the change in all competitive priorities simultaneously: therefore, in the case of Toyota. Toyota considered competitive priorities because of its new brand campaign “Ideas for Good” (Pressroom, 2010) a unique initiative to focus on what companies are there for many years – advance automotive technology. Campaign builds on Toyota’s DNA – that is the possibility of the company such as quality, durability and reliability as well as its commitment to innovation, by exchanging ideas with customers to improve the quality of life beyond the automotive world. As the result, we are focusing more on the quality and cost. First of all, when the people talk about cost, they always want to minimize it: therefore, the term low-cost operations exist. While having the low-cost strategy, the company can increase their demand for the products, but it also reduces the profits if products cannot be produced at lower cost. In order to compete based on costs, the company have to design a system that can reduces the cost per unit products. For Toyota, they have their secret weapon when they created the low cost car factories. According to the Toyota’s photogenic Executive Vice President Atsushi Niimi said “60 percent of the cost of the car is the investment into the plant, 20 percent is the parts that go in the car”. (Bertel Schmitt,…...

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