Abstract
Mapping the Innovation in Toyota Motors
Toyota Motor Corporation is a Japanese based automotive manufacturer with its main headquarters in Aichi, Japan. Toyota Inc is known as the 14th largest company of the world in terms of revenue recognition that consisted on more than 300,000 employees in different parts of the world. In the financial year (FY) 2010, the company reported the 200 millionth vehicles in their manufacturing plant. Toyota is known as the first company that produced 10 million vehicles per year. It is an economically viable company with its share listing in different parts of the world. Revenue recognized by Toyota in the financial year 2013 was Yen 22.064 trillion while the profit in the same year was Yen 962.1 billion (Liker and Convis, 2011).
The management of innovation can be extremely important for the sake of the financial and strategic viewpoint of a company, as the entire brainchild of productivity depends upon the fact that how effectively; innovation is assessed and applied accordingly. It is required to map the innovation stance of the company according to the framework on 4Ps. The 4Ps would be used for managing the information within the companies. 4Ps of marketing is one of the most important tools that stride under the field of Strategic management. The 4ps of innovation is mentioned below
All of these four processes are essential for an organization to bring positive change and effectiveness in their financial structure, and strengthen their core operations.
Launch of Hydrogen Fuel Cell-Powered Vehicle: Quality with affordability is the slogan of Toyota, and the company has the accolade to launch such products in different parts of the world having such characteristics. From the commencement of their operations, the company launched number of cars having different styles and innovations. Recently, the company is planning to launch its first “Hydrogen Fuel Cell-Powered Vehicle” in Japan, name as Toyota FCV. It is a remarkable sign of their innovation in the market that may be a dominating sign for the competitors of the company. This innovation will certainly enhance the product portfolio of the company.
Launch of Toyota GLI-2014: The Company launched GLI in the year 2014 with advance features and characteristics that has more space, comfort and innovation as compared to its previously launched products. Recently launched GLI and FCV will enhance the level of product portfolio of the company, and the company has the chance to position their product and services in a better position to its end users. FCV is a fuel efficient car, and can prevent the people from high consumption of oil and gases, that is known as a fuel efficient car (Liker and Convis, 2011).
Introduction of Fuel-Efficient Technology: Fuel Efficiency is a form of thermal efficiency that means a process that has the tendency to covert chemical potential energy to contain in a carrier fuel into the kinetic energy and work. Currently, every individual as well as companies are trying to have cost efficient solutions for their works and activities, and this new fuel efficient technology would enhance the process of the company, and bring the company and their products in a better position of innovation and effectiveness. If, Toyota’s new FCV will become famous, then it’s a sign of process innovation of the company that may bring positivity and effectiveness in their operations in particular.
Increasing Partnership with BMW: BMW is one of the largest automobile makers in the world, and it is in the compliance of partnership with Toyota. This particular thing will increase the level of Paradigm innovation, and will change the perceived behavior of the company in terms of buying the automobile of the company. The level of promotional schemes would also enhance considerably after associating with the largest automobile maker of the world.
Question-1) what is its present portfolio of innovative activity? Identify its strengths and weaknesses?
Continuous development and expansion is one of the most important activities from the standpoint of an organization, and it is the only thing from that an organization can bring financial as well as strategic effectiveness in their functions and operations. The current product portfolio of Toyota is powerful and high, and the recently launched FCV will certainly help out the company to enhance their product portfolio accordingly and effectively at the same time. FCV is a fuel efficient vehicle that will certainly help out the company to enhance their portfolio in a better position. Toyota has a goodwill and effective brand name. Every product that the company launched in the market would get a certain appreciation in the market, and this particular thing will be associated with the newly launched FCV as well. With the launch of this new product, the company ranked as the 14th largest company of the world in terms of size and financial effectiveness as well. The strength and weaknesses of Toyota are as follows
Strengths of the company
- The range of cars that variants with the offer are high
- Toyota is known as one of the oldest and reputed car manufacturing companies of the world that bring high amount of brand awareness in the society
- The amounts of employees are extremely high in the company, along with the employability
- Toyota is known as the pioneer and innovator in the field of hybrid technology. There are certain products that made by the company for the enhancement in their production value like Kaizen, Kanban and others.
- The product portfolio of the company is not only big, but it is extremely diverse as well
- Toyota is one of those companies of the world that have an effective Research & Development (R&D) stance and engineering capabilities, that is an effective sign for the company as far as enhancing their productivity and level of efficacy
- The brand awareness of Toyota in front of their consumers is high, along with the international market presence, that is a great sign for the company
- The company has a great popularity in the sponsoring events, like motorsports and others, that is a sign of excitement for the company
- The financial and strategic capability and effectiveness of the company is high, and it will be an effective sign for their investors and shareholders as well.
- The presence of the company in the Asian market is remarkable
Weaknesses of the Company
- The amount of brand recalls is extremely high in Toyota, because of the management of the company is extremely eager in terms of bring positivity and continuous improvement in their process as well as product development, therefore they often recall their products
- There are certain emerging markets like Europe and Central America, the presence of the company is extremely week that may emerge as a potential problem for the company in their future
Question-2
Based on the Gaps, identify new targets for the strategic innovation for That Company
Thriving and striving for innovation and productivity is one of the most important aspects from the viewpoint of a company, and organizations always try to bring such strategies into consideration from that they become able to generate economic profit and deliver innovative and quality based products. Due to the presence of globalization, the stance of competition is increasing all over the world that may hamper and pamper the growth of an entity from different angles and aspects. In this part, it is required to identify new recommendations from that the company can enhance the level of their strategic innovation.
The company has to invest more and more funds in their Research and Development (R&D) process to further strengthen their operations and process accordingly. This particular activity would not only upgrade their existing product, but also bring positivity in their new products. This particular strategy is the most effective strategy from that they can upgrade the level of their innovation accordingly
Toyota is intending to launch a fuel efficient car, and it is recommended to have great talent from the market within their company. The company has to hire new individuals that have the guts feelings and skills from that they can initiate this innovation process of the company. Apart from that, there is a need to further strengthen their current HR function by bringing new advancement in the process and strategy mapping like Management Bi Objective (MBO). MBO is a great approach that used by different organizations of the world that are strategizing to enhance the capability and productivity of their employees. This particular aspect not only enhances the level of satisfaction among the existing employees of the company, but also brings positivity in the new employees as well.
Pricing strategy is one of the most important strategies associated with a company that want to initiate something positive for their productivity and efficacy. It is the only strategy from that an organization can enhance the level of buying of their product. Toyota, though have a remarkable goodwill in the market, but the company has to decrease the price level a bit to enhance the level of sale of their product. In the commencement of launching of FCV, the company has to move with competitive pricing strategy, in that the price of the product should be like the same with the peer companies
Promotional strategy is yet another important strategy that the company has to adopt accordingly. It is recommended that Toyota Motors have to put a large amount of funds in their promotional activities, as it is now become an integral thing to compete with other entities. The company has to use the combination of electronic mediums and paper medium to enhance the level of advertising and promotion of their product in the market. FCV will certain get an added advantage with the help of these promotional strategies as far as innovate new product is concerned.
References
Liker, J. and Convis, G. (2011). The Toyota way to lean leadership. 1st ed. New York: McGraw-Hill.
