Toyota Case Study

Toyota has a few of competitive capabilities. The first one is their prowess in marketing and its production efficiency. It also has competitive advantage in oversea market. It has the largest market shares in U.S. compared to any other foreign automakers. The third important part of Toyota’s success a also contributes to the TPS. It makes the problem visible so that everyone can help solve certain underlying causes and problems. Another important strength of Toyota is its commitment to learning. It treats employees as its biggest assets and believes the investment in their knowledge and skills will pay back. Actually, the inculcation of scientific methods at all levels of the workforce allow Toyota dive down the costs significantly. Another important aspect is the diligent works of their employees and close relationships between employers and employees.

There are certain aspects will be needed for the Prius’ success. The first factor is the most efficient technology which will make sure Toyota becomes a leader in the future hybrid car market. Another crucial factor is the reliability of mass production and quality target. In addition, the problem of battery heating also matters a lot. Besides these aspects, how to solve the cost and reliability issues because of the new generating braking system also need to be concerned. Market acceptance and incremental variable costs will become the obstacles for the new Prius as well. Toyota can partially rely on their historical strengths, such as their ability to reducing costs, the inoculation of scientific methods throughout the company, and the company and employees’ commitment to learning and improving. However, especially during recent years, Toyota were criticized of their innovation ability. This may become a drawback during the development of Prius.

I think they should delay the launch until 1998. The first issue is their battery problem, which may leads to overheating during driving. As a result,