Toyota is one of the most successful car companies in the world. The company has set an ambitious growth target of 15% share of the global market by 2010 (compared to 11% in 2005). To this end, the European market is of strategic importance. Describes the case of a global strategy for Toyota to focus on the European market in particular. Sales in Europe increased by more than 50% between 2000 and 2005. In the process, Toyota European production capacity more than tripled to more than 600,000 units over the same period. While Toyota has been on a growth path, launch Aygo posed many problems. The segment was very sensitive to price and production costs must be tightly controlled. Toyota decided to enter a joint venture with PSA, manufacturer Peugeot / n Citro. The case shows how the cost reduction was the main principle, and explains how the two companies worked together. But the sale of vehicles with 93% parts commonality also poses many challenges for marketing by: Toyota wanted to target young customers to reduce the average age of clients. Toyota had no experience in this sector and, therefore, had to go new ways. The case takes the reader through the various steps Toyota has taken to promote Aygo. Learning Objectives: Toyota is a latecomer to the European segment minicar. The case examines how Toyota has changed the business system in order to deal with the various nuances of the segment. On the production side, Toyota entered into a joint venture with Peugeot / Citro n and built a new factory in the Czech Republic. Cars coming off the assembly line were part of this community of 93%. But the innovation does not stop at the factory gate. Toyota has invested in the massive presence of Internet access, meeting potential clients in the field of their preferences, and sponsorship of concerts, etc. case is a good platform to discuss changes in the existing Toyota business, both upstream and downstream. "Hide
by Kazuo Ichijo, George Radler Source: IMD 24 pages. Publication Date: Aug 02, 2006. Prod. #: IMD318-PDF-ENG
