Toyota Business Model | Business Model Navigator

Overview:

Toyota Motor Corporation, usually shortened to Toyota, is a Japanese multinational automotive manufacturer headquartered in Toyota, Aichi, Japan. In 2017, Toyota's corporate structure consisted of 364,445 employees worldwide and, as of September 2018, was the sixth-largest company in the world by revenue. As of 2017, Toyota is the world's second-largest automotive manufacturer. Toyota was the world's first automobile manufacturer to produce more than 10 million vehicles per year which it has done since 2012, when it also reported the production of its 200-millionth vehicle. As of July 2014, Toyota was the largest listed company in Japan by market capitalization and by revenue.

Industries:

Transportation

Automotive

Business Model Patterns:

From Push-to-pull

How they do it: The Toyota Production System set off demand-driven production, replenishing the inventory on demand so that internal inventories were reduced to a minimum. The introduction of the Toyota Production System obliged the company to reorganise its entire value chain in such a way as to reduce waste and costs, and at the same time maintain a clear customer focus.

License

How they do it: In 2010, Toyota licensed its hybrid vehicle technology to Mazda. Mazda leveraged this technology to introduce a hybrid vehicle in 2013 in the Japanese market, based partly on the Toyota Prius hybrid technology.

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