STRATEGIC MANAGEMENT FOR TOYOTA Essay Example | Topics and Well Written Essays - 1750 words

STRATEGIC MANAGEMENT FOR TOYOTA - Essay Example In effect, the strategic management option is being undertaken for the sake of helping the company gain competitive advantage over its key competitors (Pollard, 2009). Pirttimaki (2007) has stressed that even though the annual revenues of Toyota Corporation could be said to be greater than any of its competitors, the company does not lead in all aspects of the industrial competition. This is because the car making industry in itself has several divisions, all of which must be competed for to gain global dominance. Some of these competitive components that the company engages in with its competitors include luxury vehicles, automobiles, commercial vehicles, motorcycles, and engines (Gilad & Gilad, 2008). Generally, the selection of the strategic management option shall be undertaken while critiquing against a specific model to justify why it is the best that the company can have. The model to be used in the critique is made up of three major sections namely suitability, acceptability and feasibility. Under each of the sections, there shall be sub-components against which the strategic option shall be tested with. The model to be used has been simplified below. The Differentiation Strategy The strategic management option selected for Toyota Corporation is the differentiation strategy. ... As the R&D takes place, it is important to also ensure that there is massive innovation that is directed at the need to meet consumer request and demand with style and flex. This is because as all competitors identifies the needs of consumers, it is he that has innovation with the needs that catches the eye of the consumer most (O’Hara, 2008). Secondly, it is important for companies undertaking the differentiation strategy to have the ability to deliver superior quality products and or services (Gilbane Report 2005). This is indeed a very centralized aspect of the strategy because quality remains a very crucial measure for competitiveness in contemporary global market and for the undertaking of competitive global engagements (Pirttila, 1997). This is because according to Ghoshal & Kim, 2006), the consumer behaviour of most people is changing of cost consciousness to quality consciousness. It would therefore take companies to set their quality apart be gain competitive advantag e. Finally, companies that desire to pursue differentiation strategy must be ready to undertake effective sales and marketing. The reason for this is that on a competitive market such as the one that Toyota finds itself in, almost all other competitors also engage in R&D and the delivery of high quality products and services. In effect, it is those who can effectively market and sell their quality and innovative products and services that really get to the customer (Alvesson & Skoldeberg, 2000). Application of the Model to the Differentiation Strategy Suitability Suitability generally refers to the question of whether or not the selected strategic management option is the right one for the company