This paper would be dedicated to the assessment of the options for Toyota in terms of entering UK market. Toyota is referred as one of the core manufacturers of the vehicles in the global scales. It occupies the third position in the top global manufacturers. Still, there is a set of options and at the same time, threats for gaining additional shares in the market of the vehicles due to the fact that there is a set of other manufacturers in this market, who offer the innovative cares for the lower prices – for instance, Gelly, Hundai, Chevrolet etc.
This paper would assess the decision of the top management of Toyota for expansion of their positions in the UK market - whether it is a profitable managerial option or not.
Political Factors
In UK market, the most stable political conditions have been set by the EU regulations – since all the member countries have integrated their economies in order to establish the large market, which creates the opportunities for mobbing the labor force as well as the goods without the obstacles and barriers for such actions.
Economic Factors
This business entity has an option of setting up its producing operation and in such way, making UK the central country in terms of its manufacturing operations in European region. This option is mainly forced by the fact of abolition of the trade regulations alongside with the set of the steps for the economic integration (Braun and Latham, 2014).
Sociocultural Factors
It is possible to state a fact that one of the best options for Toyota was the following: to use the proficient workforce alongside with properly-developed infrastructure and managing the entry to one of the hugest markets. Additional emphasis should be put on the fact of development of the innovative designs of the vehicles for the European market (Witcher and Chau, 2010).
Technological Factors
Because UK has been the Medium Developed Economy in 1992, the Toyota is provided with the possibility of getting the perfect place for issuing the investments into the manufacturing operations. It means that the technological developments of this business entity has added the competitive advantage to Toyota (Borowski, 2010).
Mode of Entry
The option of FDI may be used by Toyota due to the fact that it is a multinational business entity, which in turn, full control over the entire set of the manufacturing operations for forcing the market control.
Recommendations for Toyota in UK would be based on three following directions: product, price and promotion.
Product
The product strategy should encompass the entire set of the product offerings of this company in the UK market. Currently, there is a wide set of the offered products for the market of UK. There is a need for customization of the product offerings in accordance with the tastes and preferences of the clients in this particular region, while referring to the set of the macro environmental factors.
Price
Pricing is an essential part of the marketing mix. The major argument in this case is the fact that in the case when the price for the products is increased, there is a high probability for minimization of the demand for them. That is why, the top management of this business entity should pay additional attention to the price of the product and adjust it to the market needs.
Place
There is a direct interrelation between the distribution network and the place. In other words, the local management should maintain the process of selling the products to the end consumers (Rao et al, 2010).
Promotion
In the case of promotional activities of UK, the major emphasis should be put on the free car services, finance offers, promotional pricing as well as discount offers to the end consumers. Additional emphasis should be put on the approach towards promotion of the products to the end clients. Effective approach towards promotion of the products leads to the increasing their sales rates (Müller, 2011).
Concussions sand recommendations
It is possible to make a statement that the major underling forces for development of the Toyota’s organization orientation are implied by the organizational culture of this business entity. The core weak points of this organization imply the decreased rate of its brand image. Still, it is estimated by the experts that there is an option of managing this aspect in the particular region within the nearest timeframe. As an evident example it is possible to refer to the introduction of Toyota’s hybrid technology. It may be implemented into the practice while maximization of the rate of availability of such products to the end customers. Only in such case, it is possible to increase the market share of UK market and popularize Toyota vehicles in the region.
In the case of following the above stated directions, Toyota has the potential of maximization of its maker share in UK region and maintain the highest quality of the customer care in this country.
References
Borowski, A.(2010) Report on the Toyota Company. GRIN Verlag
Braun, M.R., Latham, S.F. (2014) Mastering Strategy: Workshops for Business Success. ABC-CLIO
Müller, C. (2011) Case study and comparative strategic analysis of Toyota and Ryanair: The key differences in the operations strategy of manufacturers and service firms in terms of process design, supply chain, human resources, capacity, innovation and quality management. GRIN Verlag
Rao, C. A., Rao, B. P., Sivaramakrishna, K. (2009) Strategic Management and Business Policy. Excel Books India
Witcher, B.J., Chau, V.S.(2010) Strategic Management: Principles and Practice. Cengage Learning EMEA
