Toyota International Marketing

Table des matières

Introduction 4

I. Transnational Corporation 5

A. Introduction the corporation 5

B. Proactive motivations 5

C. Reactive motivations 6

D. Toyota’s model’s internationalization 7

II. PESTEL analysis 8

A. Political Environment 8

B. Economical environment 9

C. Socio-cultural environment 11

D. Technological environment 12

E. Ecological environment 13

Conclusion 14

Bibliography 15

Introduction

Today in the automobile sector you can find many competitors, like Renault, Nisan, Honda, Ferrari, Ford and Toyota. The automobile sector includes not only cars but also all others vehicles like trucks, farm equipment, and commercials vehicles.

We are going to study one specific car company. This one is very famous in the entire world because it is a fortune 500 company: Toyota. Currently Toyota sells products and services all around the world but it was not always like this. Before the globalisation of business, Toyota only sold and produced in Japan. Toyota's arrival in France was not as fast as one can imagine. So we'll see the important elements of the integration of Toyota France.

For an overview of the size of the company today, here some key numbers :

- Turnover in 2013: 191,8 billion euro

- Net profit of 2013: 13,6 billion euro

There numbers are given with change rate 134 Yens for 1€.

In the first part, we will study all elements that allowed Toyota to settle in the French market. Thanks to international marketing aspects, opportunities and threats that company overcome will be highlighted.

In the second part, the environment analysis framework will allow to underline the complexity and multi-dimensionality of the internationalization of Toyota.

II. Transnational Corporation

A. Introduction the corporation

Toyota is a Japanese Company which first started activity in the production of cars in 1937. His first activity had no connection with cars, it’s only a few years after the creation of Toyota, and after many travels Kiichiro Toyoda, the son of the original creator of Toyota, launched out in automotive engineering The first activity was Toyota Motor Company which encountered lots of difficulties during these first years of existence because of the Second World War. This war has had a big impact on economics in each country and each sector. After the Second World War, economic aspects in Japan were seriously bad. Toyota decided to fight against the economics aspects in Japan, to export their products to other countries thanks to internationalization.

They started to export in some place like America Latina, Asia, Australia and Africa. They targeted in first time all area where the presence of competitors was more limited (around 1960). “In 1986, it became the first import automaker to sell more than one million vehicles in America in a single year, racking up sales of 1,025,305 cars and trucks.” The company's name is known all over the world, thanks to it’s famous production system the " Toyotisme”.

B. Proactive motivations

Many reasons can explain Toyota’s internationalization in France. We can distinct two types of approaches. The first one is proactive reasons. Toyota was able to see the European market potential. French market has a strong influence over a big part of European union. The European loved to consume many things like French people; it’s a smart way. France has a great location geographically to be central to its potential consumers. This explains the construction of a factory a few years after this implantation.

Toyota decided very quickly after first sales in France to build a factory on French territory. To start their implosion in France, Toyota sold some cars, but the brand feels immediately the need to locale a factory near their customers or potential. In other words the company built a factory in Valenciennes, a strategic place to produce cars in Europe. It’s the place that the company can be in the centre of all our customers.

This plant was very important for Toyota for the future. Thanks to this factory the company could be near international customers. Moreover the consummation in Europe increased rapidly around 1990.

C. Reactive motivations

Internationalization is one type of development; some companies have to export their products to produce benefits. Thanks to globalisation nowadays it’s easer than before. That was the case for Toyota, when the company decided to come in Europe, especially in France.

The main reason Toyota came to France, was the conquest of new customers. Around 1980, the Japanese market started to stabilize as you can see in the graph on the left.

The majority of the population had a car but economic situation stopped Japanese people buying a new car. For example during 1996, Japanese sells decreased around 10%. There was a saturation market in Japan in the automobile sector.

The 20th Century saw the beginning of the globalisation. Each country exported and imported their important devices. Globalisation permitted to break all barriers. Globalisation had opened up new market and created opportunities for business’ to expand their market share.

They started to sell product in France because the French market was very smart. The consummation in France had a big impact on the consummation in all southern Europe. If bought Toyota is in touch in France, the reputation brand can be spread over much Europe. It’s one of the most important marketing aspects for Toyota to came in France.

Moreover Toyota had seized the opportunity of the French market. During internationalization the market demand in