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What kinds of industries tend to be better performers in the medium to long term? Why? What kinds of industries tend to do poorly in the medium to long term? Why?

Can you make the claim that some industries are inherently more profitable than others? Provide arguments and examples to justify your response.

Generally speaking, for companies in the same industry, what factors would explain differences in company performance over the long term?

Your thoughts about the fundamental strategic issues facing the industry in which your organization exists. Compare the performance of your company against the industry within which it operates, for 1 year and 5 years, using the Morningstar database or any other source of information that is appropriate

1. The kind of industries which tend to perform better in the medium to long term include railroad, insurance service providers, and resorts & casinos. This is because of the management practices used in the industries and the pattern of cash flow that the industries have. The revenue flow in the resorts and casinos may be volatile during the short term but when viewed in the medium to long term it is stable. The management practices used in the industries such as the sale of time shares smoothen the volatilities that commonly experienced in the industries. Industries such as savings & cooperative banks and independent power production tend to perform poorly in the medium to long term period. This is because the savings and cooperative banks are affected by both the economy and customer demands hence the varying year returns. Savings and cooperative banks avail various substitutes to customers in the long term. These substitutes determine the competition in the industry. Independent power production industry performs poorly because it is privately owned .

2. Some industries are inherently profitable than others because some of the industries perform better in the medium to long term compared to others. For example the returns in resorts and casinos may be volatile in the short run but stable in the long term while industries such as the coal and gold industries have low returns in the short run because of their nature of getting depleted with time and hence depreciating value. This, therefore, makes some of the industries to be more profitable than others.

3. Companies in the same industry may perform differently over the long term. Strong and focused leadership, strategies and tactics laid by the company, the company’s competitive advantage, industry environment, innovations and competitive activities are the factors which can help to explain the differences in performances over the long term in the industries. Strong and focused leadership provide the necessary vision and mission statement for the company to determine the guidelines to achieve its goals and explain the long term performance differences. Successful companies establish and implement strategies and tactics that enable them to achieve competitive advantage over others. The companies also need to ensure that they meet the actual need and preferences of their customers that vary from time to time and hence distinguished performance (Blackburn, 1991).

4. The issues facing the industry in which my organization exists include; modernizing finance, actuarial and risk management functions in the industry, taxation problem, efficient management of policy administration systems and strategies including the future of life insurance and improving the experience of customers in the industry. Comparing the company’s performance and the industry in which it operates, for one year the returns are low while for five years time the returns are high implying a better performance over the long term. The industry also portrays the same trend as shown in the Morningstar database. Conclusively, the company performs better over the long term compared to the short term.

References

Blackburn, J. D. (1991). Time-based competition: the next battleground in American manufacturing. Irwin Professional Pub.

Your company’s strategy for competitive advantage (i.e. cost leader, differentiation, etc.) and your opinion about how they might change or improve this strategy.

An analysis of your company’s industry from the point of view of Porter’s Five Forces, the Industry Life Cycle, and any other strategy frameworks that provide insight to your understanding of the industry and the competitive position of your company within it.

Toyota is an automotive company that deals in the manufacture, distribution and selling of motors and their part. As such, the organization operates within the auto industry which besides it sustains Ford and other motor companies. This article is a discussion designed to confer the company’s auto industry from the Porter’s Five Forces point of view alongside its strengths and weaknesses from the Resource Based View point of view.

Porter five forces analysis refers to a structure used to analyze the competition degree in a specified industry; the auto one in this context, or/and a corporate stratagem development. The framework depicts upon the money matters of the industrial organization (IO) to deduce five drives that establish the cutthroat strength, hence the charisma of an Industry (Highfill, et. al, 2012). The Auto industry upholds several entry buriers. As a result, it presents several intimidations on new participants. For instance, expertise, human resource firm facilities and machinery are heavily entailed. These factors as Highfill, et al. (2012) explains are what define the entry obstacles in the industry. As such, for new institutions in this auto sector like KIA, they ought to establish mass production so as to attain economies of scale.

The bargaining influence of consumers is somewhat high in this industry. Product outlook, price and environmental factors hold on the list of aspects that influences the clients’ buying choices (Highfill, et. al, 2012). The rationale behind the low customers’ purchasing power is that their volume and size is small. On this ground, the buyers have no aptitude of incorporating backwards in the diligence.

While this is the course with the buyers bargaining power, the one for suppliers is extremely minimal (Highfill, et. al, 2012). The reason is that there are a lot of suppliers in the market. For a case in point, Toyota sustains approximately ten diverse dealers in the U.S.

On the ground of antagonism, rivalry brings various reliefs to consumers in this industry. For instance, when new firms get in the market, they better prices and enhance commodity differentiation among others (Osono, et. al, (2008). As this course holds, product differentiation lingers significant in the sector as well. There are so many similar vehicles in the car industry. Just observe a mid-range Nissan and you will see an almost same Toyota.

Given that Toyota still operates in this kind of industry, a fact upholds that the company has several strengths that enable it to manage the condition in the quarter. In the similar manner, the organization faces various weaknesses that curb it from experiencing maximum profits according to (Osono, et. al, (2008). As a result, despite Toyota being around twenty years old, the Resource Based View lingers a blazing subject. The framework focuses on the inner aspects of corporate that perpetuate their operation and growth.

According to this structure, Toyota outperforms amid other players in the auto industry. As such, it sustains it competitive advantage in the sector. One of the company’s strength is that it has distinguished itself from other performers, like the General Motors through its advanced productivity and quality that perpetuates raise of the efficacy of product. Osono, et al. (2008) says the firm has also captured the value creation in clients. It has achieved this curse through putting up poise in the perspective of consumers and becoming more credible. All the same the firm experiences several weaknesses in terms of incompetent personnel, stiff competition and inadequate finances to fund its operations and compete effectively.

References

Highfill, D., Baki, M., Green, M. & Smith, J., (2012). Automotive Industry Analysis - GM, DaimlerChrysler, Toyota, Ford, Honda. [Online] AcademicMind.com Available at:http://academicmind.com/unpublishedpapers/business/management/2004-11-000aaa-automotive- industry-analysis.html  [Accessed 15 March 2012].

Osono, E., Shimizu, N., Takeuchi, H., & Dorton, J. K. (2008). Extreme Toyota: Radical contradictions that drive success at the world's best manufacturer. Hoboken: John Wiley & Sons.

An analysis of the strengths and weaknesses of your company from the point of view of the Resource Based View of the Firm model and any other strategy frameworks that provide insight into your company’s strategic competitiveness.

Your organization’s international business, if any (where, what, how, etc.). Can you think of areas of additional global opportunity for your company?

Also, post a link to at least one news story in your PA and explain briefly how the news story bears on your company/industry and the topics for the week.

Post your PA in the Conference Area. Read and comment upon the PA posts of at least two your fellow students.

Toyota Company is a leading company in manufacturing, assembling and distribution of cars all over the world. The good performance that has always been witnessed in the company is due to an efficient management system that have always been used in the company. Some other salient factors have contributed to the achievement of the market niche for this company. The company is a prevailing market player in car exploration following its dominating market differentiation strategy. Currently, the company enjoys more of monopoly in the developing nations of the world. The market structure of the company is perceived as an oligopoly because other key players like GM exist in the market but are peer competitors. The goal of Toyota is to see what its competitors are doing and make sure it responds to their activities in a way that will create assurance in its market leadership.

Customer Analysis.

The customers of Toyota Company are varying from low-income earners to high-income earners, and they are found almost everywhere around the world. This company has accommodated all the requirements that usually and may arise for persons with a broad range of vehicles. The type of vehicles in this company vary from sports cars to big family cars, vans and trucks. The customers of this company include the young and the old, with varying ages, from different geographical locations, with different cultural and social statuses. It has been notably apparent that most of these customers go for Toyota products mainly to satisfy their tastes and preferences. Product awareness is enhanced through ads, website information, newsletters amongst other sources.

In addition, once persons acquire the company’s product, there is an enlarged exposure to its other products. The ability of Toyota to generate revenue from complimentary products like books and seminars by affiliates is very big.

Where customers Purchase.

Almost all the company’s products are sold through retail distributors who are located most places in the world. The buying of some edition models can be done directly from the factories, especially for the limited edition models. The upsurge in the use of electronic business, this company currently buy its products on-line. The majority of the promotion materials can be gotten in full by viewing over the Internet. Customers can also place orders for the products that are present in stores and with a toll-free number directly from the company. This has always offered the customers opportunities to access the products of the company around the world. When the customers are making Purchases.

Most individuals have the capacity to buy the products of the company any time anywhere that suits their taste and preferences. This follows the fact that this company sells its products throughout the year except for the limited edition models that are purchased direct from the factories. For the new users, in some countries, they purchase the company products upon acquiring the driver’s license. Some customers purchase the cars when the ones that they are using get old, the old breaks down or when they want to have a newer model.

Why customers Purchase company products.

The products of Toyota Company are specialized in nature and very comprehensive, this has made many customers prefer this company. The company offers varied models that comprise of all the client needs. These needs are always aimed at maintaining and building high standards when it comes to the products. They provide less expensive substitutions to the clients for the similar products from other manufacturers that are pretty expensive. In addition, this Company has invested heavily in safety in their cars. Toyota currently stands at a better position, after inventing the hybrid vehicle, to making the future of the motor industry.

Why Potential Customers Don’t Purchase.

Toyota Company targets much wider population than their customer base essentially reflects. Following the high number of similar products, the acquisition of the products comes down to dislike or like. Because of the different social and class status of the potential buyers, and the fact that Toyota products do not always offer an implication of high social standing, a customer may opt to buy a car from the company’ product despite similarities between the cars. Toyota’s Opportunities.

There are two main opportunities that exist for Toyota Company. The company provides better cars that suit the needs and expectations of the customers and has the capacity of increasing the efficiency of the company to reduce the costs and the environmental impact. The opportunity of making better cars is considered as a better step since it matches well with the global trends. The current customers are interested in products that have minimal impacts on the environment.

On the other hand, the capacity to increase the efficiency of the company is also very essential in the sense of the up surging prices of resources and the resulting possible rise in the cost of production. These opportunities can provide ways by which Toyota Company can make itself tougher within the present issues and problems that it undergoes in the current market conditions.

References

Armstrong, G., & Kotler, P. (2002). Marketing: an introduction (International edition). New Jersey: Prentice Hall. Retrieved October 7, 2010 from http://www.pearsonhighered.com/educator/product/Marketing-An-Introduction-7E/9780131424104.page

Chamberlin, P. (2009). Customer service complaint handling. New York: The Gurdian. Retrieved October 7, 2010 from http://www.impactfactory.com/p/customer_service_skills_training_development/issues_936-2103-87287.html

https://www.academia.edu/4784977/Running_Head_MARKETING_PLAN_FOR_TOYOTA_MOTOR_COMPANY

Describe your company’s activities on the Internet and any ideas you may have for additional strategic opportunities they might explore in this new medium.

Toyota has quite a large selection on it's website. It includes a showroom, new ideas and up and coming products, events, sustainability, about the company and it's background, news, and investors. Each one of these links has numerous options attached for almost anything you could think of. It also has all it's social media links (facebook, google and youtube), a search engine and a website by region where you can click your location and it will bring you to a more personalized local webpage. The page is very user friendly and also offers FAQS, contact information and more. I would say Toyota hit it out of the part with their website and user friendly-ness. 

If I were to suggest type of strategy at all it would be a marketing or sexy, trendy video/commercial that plays when you are first directed to the website. Ideally this will make Toyota stand out and catch viewers attention in a strategic marketing aspect.

Your organization’s past experience with mergers and acquisitions or joint ventures. Based upon this week’s other assignments, can you think of areas of additional global M& A or joint venture opportunity for your company?

Toyota is and never has been a stranger to acquisitions and mergers! Although the list is too long to list, Toyota has made more than 100 acquisitions and or investments over its life. Toyota is known more for acquisitions, forming companies, and producing quality named products in other countries. In fact, most of the acquisitions that Toyota has made span the globe, while they maintain few corporations in Japan. (Toyota Motor Corporation, 2012) Many of the acquisitions are in form of automobile plants or sales corporations in foreign countries. 

There are many companies that compete with Toyota, and although Toyota might not maintain or have a monopoly in any one country, they are perhaps one of the most diverse companies in the world. This diversity has and will help them sustain in a market that will most likely see a shaky near future. Toyota's foreign interests are perhaps one of its greatest strategies. Toyota has stake in many countries around the world, and enjoys both failure and success all around the world. This foreign interest helps Toyota sustain growth and mitigate shaky markets, by playing all aspects of the market. If anything is for sure, Toyota is more likely to expand its current global footprint. 


I currently cannot reccomend another merger/acquisition for Toyota as of yet. They have their market that is flowing smoothly and is focused on globally expanding. They have good connections with the right companies and are working with the right people in order to maintain strong acquisitions.

References 
Securities & Exchange Commission. (2012). Toyota Motor Corporation. Retrieved December 11th, 2006 from http://www.sec.gov/Archives/edgar/data/1094517/000119312506135772/d20f.htm

Your company’s environment for encouraging and enabling the implementation of innovation.

Toyota is one of the greatest companies in it's industry to really devote energy to innovation (in all aspects). They encourage innovation by allowing employees to share and implement ideas, programs and even events. They promote and reward collaboration as well. Lots of employee workshops have committed time and money to employees perfecting their ideas and bringing them to life. Beyond strong employee encouragment and accelerating financial performance, creativity continues to be strong for this company. In an era of intense globalization, rapid demographic change and accelerating technological progress, Toyota is truly a leader for being able to recognize the value of innovation. Even their website is a great example of how they continue to stay with the times and progress with society. They keep up with all aspects of social media, keep up with their competitors and MORE! They make it the heart of their corporate culture and use a targeted, focused innovation mindset to drive shareholder value and improve efficiency.