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
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
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
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/