T.J. Creamer
MBA-540: Module 1 Journal
Southern New Hampshire University
Toyota Motor Corporation was founded by Kiichiro Toyoda in 1937 and has developed
into one of the largest and most successful automobile manufacturers in the world. There are
manufacturing plants around the world, but Toyota is headquartered in Toyota City, Aichi, Japan.
Sakichi Toyoda, Kiichiro’s father, originally founded Toyoda Automatic Loom Works, Ltd. in
1926 as a machine maker. Kiichiro would then start Toyota Motor Corporation as a complement
of the original company. Its first product, the Type A engine was developed in 1934 while its first
passenger vehicle, Toyota AA, was created in 1936. World War II would stunt the growth of
Toyota Motor but would see a revival after the war with Japan and America’s alliance that
brought many ideas across the seas. In the 1960s, the Toyota Corolla was born, setting off a chain
reaction that would make this vehicle the best-selling automobile of all time. The Toyota Prius,
developed in 1997, was years ahead of its time as being a hyper fuel-efficient vehicle. Since then,
Toyota would become a leader in innovation and hold a reputation as being one of the most
reliable automobile manufacturers around (The Editors of Encyclopaedia Britannica, 2023).
Toyota primarily serves individual customers through its automobile sales, which is its
largest division. Toyota’s most recent report shows $250 billion in revenue, driven mostly by its
automobile division (Mergent Online, 2023). Toyota has also stepped into the luxury vehicle
market with its brand Lexus as a direct competitor to BMW and Mercedes-Benz. Toyota’s best-
selling market continues to be its division in North America, specifically the United States.
Toyota has a financial services department with its profits much lower than other automobile
manufacturers. “Automotive activities accounted for 90.5% of worldwide sales revenue in the
fiscal year of 2021, while financial services accounted for only 7.9%” (McFarlane, 2021).
As Toyota remains one of the most successful automobile manufacturers available, there
are several challenges that Toyota must face to stay at or near the top of the market. COVID-19
and climate change have both impacted how consumers look at making their purchases of
vehicles. People are still facing the economic consequences of a global pandemic, reducing their
ability and want to buy a vehicle. Also, those who are concerned about climate change and have
the financial means want a vehicle that will produce less carbon emissions. These are issues that,
if ignored, will cause Toyota to fall behind their competitors in pursuit of what customers want.
They must continue to invest in research and development so that they will be at the forefront of
the newest technological advances.
References
McFarlane, G. (2021). How Toyota Makes Money. Investopedia.
https://www.investopedia.com/articles/markets/021416/how-toyota-makes-money-tm.asp
Mergent Online. (2023). Toyota Motor Corp. https://www-mergentonline-
com.ezproxy.snhu.edu/companydetail.php?compnumber=8318
The Editors of Encyclopaedia Britannica. (2023, April 21). Toyota Motor Corporation | History
& Facts. Encyclopedia Britannica. https://www.britannica.com/topic/Toyota-Motor-
Corporation
