Key Challenges in Marketing Channels of Toyota Motors

Executive Summary

Toyota has failed to cater successfully to other markets excepting Japan. There are diverse logistical challenges which have hampered Toyota's progress. The economic conditions, excessive reliance on Japanese companies, the high cost of inbound and outbound logistics create hurdles for Toyota's progress in Europe. I will look at the challenges concerning Toyota for successful operations in Europe. Although there are numerous other challenges as well, I will cover the challenges related to Logistics and Marketing Channels. Following the analysis of the problems, I will propose the solutions to effectively counter these challenges.

Table of Contents

Introduction4

Importance of Manufacturing Facilities5

Importance of Supply Chain5

Just In Time (J.I.T)5

Key Logistics Challenges for Toyota6

Delay in Distribution7

Toyota Accelerator Pedals7

Tsunami In Japan9

Role of Environment11

Purpose of Just In Time12

Solutions12

Conclusion14

References16

Key Challenges in Marketing Channels of Toyota Motors

Introduction

The Automotive Industry has only recently adopted the concept of Supply Chain. Products need to be managed in the context of a supply chain process. Managing the Supply Chain successfully, helps to maintain a competitive edge in the market. It is a significant challenge to conquer. The entrepreneurial side to processes had to be implemented. Supply chain Management not only includes the supplier but also the distribution, manufacturing. It covers all the areas pertaining to the product. Felicitating the customer is important in Supply Chain (Suthikarnnarunai, 2008).

The Management of Supply Chain processes promises maximum chances of growth for Organizations. It has special focus on the betterment of processes according to customer needs (Guarnieri, 2006).

Toyota is one of the world leaders in the automotive industry. It prides itself on the innovative and stylish automobiles it introduces for its customers. Toyota's customer efficient automobiles have contributed a key part in its success. It boasts of a huge clientele (Toyota Motors, 2012).

The automobile industry is the world's leading manufacturing activity. The developing market is a huge market for automobiles. It contributes a huge share to the automobile industry. There are good prospects for a high market growth in the developing world. Even after launch of high class automobiles, the developing countries have low level of income. There would have to be a high surge in the income levels if the developing world has to compete with the developed world (Sutherland et al, 2007).

Importance of Manufacturing Facilities

Automotive companies pride themselves on their production facilities. If we take the case of Toyota, it was the first one to introduce modern manufacturing techniques. Since an automobile is a luxury product, its production should be characterized by world class processes. The manufacturing techniques should reflect the technological advancements.

Importance of Supply Chain

An Organization's Supply Chain is very important with regards to its success.

Most Automobile Organizations have made it to the top largely due to their efficient supply chain processes. Japanese Automotive Companies are leaving the other Automobile companies behind. The reason is their highly technological supply chain processes. As a result, the present is considered to be a transitional stage for the automotive ...