INTRODUCING NEW PRODUCT AND SERVICE TO INTERNATIONAL MARKET - TOYOTA CASE STUDY

INTRODUCINGNEW PRODUCTAND SERVICE

Hongsheng Zhang25370197

BACKGROUND

Found in 1933

2000World First Hybrid CarPrius

Launch Scionsin Nth Americanfor Gen Y2002

Launch Luxury BrandLexus for Nth American Market1989

Full Line of Carsfor U.S Market

1982Launch Mid-Price

Camry

2006World’s Largest Car Maker

2009Massive Recall

for over 8 Million

Offer Incentive 2 yrs free mantenancezero-percent finance

2010

2011World’s 3rd Car Maker (OICA)

1.GM2.VW3.Toyota

Back to World’s Largest Car Maker (WSJ)

Late 2012

FutureToyota Concept Car

Make or Buy?

NEW PRODUCT OPTIONS

Acquisition - 1998 (small off-road vehicles)

Development - Toyota

Type of New Product

Minor improvements or revisions of existing productCamry

New-to-the-world Prius (World First Hybrid Car)

Prius

CAMRY

1980s 1990s 2000s

2013

CHALLENGES IN NEW PRODUCT DEVELOPMENT

Innovation Prius- Willing to risk to entre new market

Competition GM- Announce to enter hybrid market

Execution 2009 Recall- Over speed development

Opportunity Scion- Young people, personalization, cheap car

“We pursued growth over the speed at which we were able to develop our people and our organization. ” -- Akio Toyota President

ORGANISATIONAL ARRANGEMENTS

Customer driven engineeringScion

Sion FR-S

ORGANISATIONAL ARRANGEMENTS

Brand ManagementLexus - Luxury BrandToyota - Generic BrandScion - Budget Brand

Lexus

BudgetingSpends more than $1 million every hour of every day on research and development. (Toyota Australia,2009)

Organizing DevelopmentCross-Function Team (Venture Team) Susha - chief engineer - run the specific development programBucho - department manager - runs each of the various functional teams (power train, electronics, chassis, and the like. ) not assign to specific project

ORGANISATIONAL ARRANGEMENTS

Multiple project ongoing at same time

Manufacturing8 models at same timeThousands of operational changes in a year

Thank You

REFERENCEDawson, C. (2013, 28/01/2013). Toyota Again World's Largest Auto Maker, The Wall Street Journal Retrieved from http://online.wsj.com/article/SB10001424127887323375204578269181060493750.html

Kotler, P, & Keller, Kevin L. (2012). Marketing Management (14 ed.). Essex, England: Pearson Education Limited.

Loehr, J, & Dehoff, K. (2007). Innovation Agility. Strategy+Business, Summer 2007(47).

Toyota Australia. (2009, 09/12/2009). $1.1 Million an hour: Toyota is the world's top R&D spender. Retrieved 16/09, 2013, from http://www.toyota.com.au/news/toyota-the-worlds-top-r-d-spender

International Directory of Company Histories. (2001). Toyota Motor Corporation History. Retrieved 16/09, 2013, from http://www.fundinguniverse.com/company-histories/toyota-motor-corporation-history/