Business Case Studies, Competitive Strategies Case Study, Toyota : Aiming for Larger Presence in Europe

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Case Title:

Toyota : Aiming for Larger Presence in Europe

Publication Year : 2006

Authors: Taranjeet Chawla, Kumar Satyaki Ray

Industry: Automobiles

Region:Europe

Case Code: COM0237K

Teaching Note: Not Available

Structured Assignment: Not Available

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Abstract:
In the early 2000s, Toyota, the second largest automobile manufacturer in the world after GM, was planning to expand its small car range in Europe. Despite its long presence in the continent the company could not gain a significant share of the European auto market. The company realised that it was due to growing consumer preference for smaller and cleaner cars. Another major factor, according to the company, was that the styles and looks of the Asian car models did not appeal to the European customers. In order to gain a larger share of the market, Toyota localised it European operations by setting up manufacturing facilities, engine plant, design studio etc. within the continent. It also launched several small car models to attract the Europeans.

The case discusses in brief Toyota’s history and its European operations along with the automobile market of Europe. The case also highlights how the company is trying to streamline its European business. Finally, it raises a question regarding Toyota’s ability to boost its market share in Europe.

Pedagogical Objectives:

  • To discuss Toyota’s strategies to increase its market share in Europe
  • To develop an understanding of the automobile market of Europe
  • To analyse how Toyota sensed customer demands and localised its design, production and marketing
  • To understand the importance of new product launch.

Keywords : Toyota; Small car; European auto market; Yaris; Compact car; TMUK (Toyota Motor Manufacturing UK); Growth Strategies Case Study; Peugeot-Citroen; Avensis; Corolla; Lexus; Aygo; General Motors; Ford; Hyundai; Honda

Contents : 
Automobile Market Of Europe
Toyota: Focusing On Europe
Toyota’s Market-Share In Europe
Worldwide Production Of Passenger Cars 2004
European Market Share 1995

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