Toyota Motor Corporation is a Japanese multinational, manufacturing and selling a range of vehicles throughout the world. Its global vision is:

• “Toyota will lead the future mobility society, enriching lives around the world with the safest and most responsible ways of moving people.
• Through our commitment to quality, ceaseless innovation, and respect for the planet, we strive to exceed expectations and be rewarded with a smile.
• We will meet challenging goals by engaging the talent and passion of people who believe there is always a better way.”

Toyota has four main brands of vehicles:

• Toyota
• Daihatsu (budget vehicles)
• Lexus (luxury vehicles)
• Hino (commercial vehicles, e.g. trucks)

Toyota does not make motorcycles. Further, it has been the leading producer of hybrid vehicles for many years, but only recently started producing fully-electric vehicles.

Toyota’s vehicles are sold through third-party dealerships around the world, although Toyota maintains a high-degree of control over these dealerships.

Required:

(a) Discuss Toyota Motor Corporation’s strategy. Hint: Apply strategy concepts covered in ACCT222 lectures. Use your own words.

(b) Discuss how Toyota Motor Corporation may use cost- and market-based pricing to manage revenue and implement its strategy. Use your own words.