Subject category:
Strategy and General Management
Published by:
IBS Case Development Center
Length: 15 pages
Data source: Published sources
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Abstract
The Japanese carmaker Toyota, the second largest car manufacturing company, entered France in 1971 as part of its global expansion strategy. Initially it imported cars from Japan. After the lifting of import restrictions in 1998, it set up a manufacturing unit at Valenciennes, in Northern France, and generated 2,000 jobs. The company implemented ''just-in-time'' techniques and ''kaizen'' to improve its plant efficiency. Toyota became successful in France with the increase in sales of its cars like Yaris, Corolla, Avensis and Prius. But as demand for the cars increased, it started facing competition from Mercedes, BMW, and Audi. The case facilitates a discussion on the entry strategies of Toyota in France and the strategies adopted by the company to compete with big local players like Renault, Volkswagen, and BMW in order to gain a substantial market share.
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Abstract
The Japanese carmaker Toyota, the second largest car manufacturing company, entered France in 1971 as part of its global expansion strategy. Initially it imported cars from Japan. After the lifting of import restrictions in 1998, it set up a manufacturing unit at Valenciennes, in Northern France, and generated 2,000 jobs. The company implemented ''just-in-time'' techniques and ''kaizen'' to improve its plant efficiency. Toyota became successful in France with the increase in sales of its cars like Yaris, Corolla, Avensis and Prius. But as demand for the cars increased, it started facing competition from Mercedes, BMW, and Audi. The case facilitates a discussion on the entry strategies of Toyota in France and the strategies adopted by the company to compete with big local players like Renault, Volkswagen, and BMW in order to gain a substantial market share.