Business Case Studies, Competitive Strategies Case Study, Toyota, Ford in the US

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Competitive Strategies Case Study

Case Title:

Toyota Ahead of Ford in the US

Publication Year : 2006

Authors: Roopesh Ramakrishnan, Menaka Rao

Industry: Automobiles


Case Code: COM0173B

Teaching Note: Available

Structured Assignment: Available

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Toyota Motor Corp. (TMC) surpassed Ford Motor Co. as the No.2 car maker in the U.S, in July 2006. It was for the first time that Toyota overtook Ford in its home market. Toyota had earlier outsold Ford in terms of global sales. TMC which replaced Chrysler as the No.3 in the Big 3 of the U.S car market, earlier in 2006, outsold Ford by a margin of 1,837 vehicles. What were the factors that helped Toyota surpass Ford? Was it American’s growing preference for foreign models or Toyota’s product quality and more fuel-efficient models or was it something else? And what were the factors that affected Ford’s sales declines? This case discusses various reasons for Toyota’s achievement.

Pedagogical Objectives:

  • To understand the relevance of innovation as a growth strategy and for competitive advantage
  • To discuss the evolution of competition in the US automobile industry and the entry and expansion of foreign brands
  • To analyse the market success of Toyota and growing competition from its rivals
  • To assess Ford’s moves to regain its position and Toyota’s need to sustain its growth.

Keywords : Toyota and Ford; Toyota's sales; US car market; Toyota in the US; The Big 3; Ford struggling; Competitive Strategies Case Study; Toyota ahead of Ford; Stock prices; Market share; SUVs and Hybrid cars; Fuel efficiency; American Customer satisfaction Index; Customer retantion rates; Ford - Looking to bounce back; Ford - Rejuvenation process

Contents : 
Soaring Toyota sales
Toyota in the US
Struggling Ford
Toyota ahead of Ford
Marketing Group Fuel Economy
Domestic and International Manufacturers
What helped Toyota?
Ford – Looking to bounce back

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