Pick a product category Consider the strategies of market le

Pick a product category. Consider the strategies of market leaders in different countries. How are they the same and how are they different?

Solution

Product category : - Automobiles

Market leader chosen : Toyota

Toyota strategy in United States : - Toyota was the first company in the United States to introduce small cars. They wanted to differentiate themselves from their rivals, which at the time manufactured heavy cars. By entering the market with small cars and by investing money in research and development , Toyota prevented high competition from local companies. Being the first company to introduce small cars in North America , they had an advantage which year by year became more popular and it enabled them to achieve economies of scale in small cars category . The pricing strategy of Toyota is similar in all countries . The prices are aimed at middle class customers unlike other competitors who manufacture expensive cars and are aimed at high high end customers .

Toyota cars in India : Indian conditions make it challenging for companies like Toyota to manufacture cars that suit Indian driving conditions and consumer tastes. Cars that are manufactured for India should be extremly robust and should be able to withstand poor road conditions , especially in rural India , where road conditions are poor . The cars should be be priced competitively as Indian consumers are price sensitive and prefer cars that offer the lowest best price in that segment . To meet the challenges in India , Toyota has set up its own manufacturing unit in Karnataka and have invested in R&D to understand Indian driving conditions , and the produce cars that can withstand Indian conditions . They have also set a very high social responsibility initiative to make Indian consumers aware of Toyota company and its products .

In general Toyota automobiles are robust and withstand any road conditions no matter in which part of the world the vehicles are used .