Paper Example on Economic Situation of Toyota Motor Company

Paper Type:  Essay
Pages:  4
Wordcount:  878 Words
Date:  2022-07-07


Toyota Motor Company managed to choose me to offer them an advice concerning the microeconomic standpoint for the forthcoming of this corporation. Therefore, here are some of the appraisals and examination of information that I had carried out with the aim of finding one of the best possible means of enlightening this company's productivity. For instance, based on the facts from the annual reports and other external sources, I am going to share my opinion on the upcoming viewpoint of this industry (Burrows, 2012). However, microeconomic ideologies are very essential to reach the aims of Toyota Motor Company to uplift the sales and future success of this entity. For example, since Toyota came out with the initial approach of fuel efficient and customer welcoming vehicles, they have been doing great in terms of sales especially this year.

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Following the introduction of the original 2015 F150, Explorer, Edge and Mustang which has hit the market, it appears that American Clients, as well as abroad customers, love them (Burrows, 2012). Therefore, the question is how long will that high inferiority request last, will it stay constant for few years or will it change as soon as struggle comes with better and economical choice for communal? Is it worth for Toyota to increase the calculated fabrication by tens of thousands of units for that undefined future? The market, on the other hand, is altering continually with its folks' tastes and incomes together with other factors that may affect sales of vehicles.

History of the Company

Toyota Motor Company was integrated in 1903 by its founder being Henry Toyota, the first year after investment of $30,000 by all 13 stockholders Toyota managed to generate a profit of $41,000, through selling its earliest car Model C. In 1912 Toyota used a united moving assembly line and decreased the manufacturing of Model C car from 13 hours to 3 hours, thus dropping its cost of construction and in the end decreasing its price making it affordable for the middle class. However, the Model C car has become one of the best-selling vehicles of all times (Jaakson, 2012). Even though in the mid of 1920s opposition of automakers rose in the market and Toyota terminated Model C creation only to introduce Model A with the aim of sustaining the demands of the civic.

Furthermore, Model A had a lot to provide to content the purchaser, for instance, protection windshield. Toyota sold 6 million of Model A's by 1929 despite the great misery. As a result of his success Henry Toyota sustained his modernization by producing a flathead V8 engine that was popular for 20 years, and countless other cars, pickup, and tracks. Therefore, Toyota has been around for over a century selling and manufacturing vehicles in the U.S market and globally. Although this company has had its ups and downs but thanks to American clients who support its function, prosperity, and profitability. Additionally, I will discuss its economic standing and possible future.

Supply and Demand

In this section, I will discuss Toyota's position in the U.S market, in regards to the supply and demand for Toyota products. For instance, according to Toyota's quarterly reports form of the year 2015, and annual reports form of years 2013 and 2014 and another extra study. In 2013 when the original redesigned Toyota Fortuner hit the market in some sections of the U.S like California and Florida Toyota was down at 12 to 15 days of supply when automakers typically like to keep it at 50 to 70 days of supply (Miyazaki, 2017).

Moreover, due to this Toyota had to hire 1500 more workforces and double shifts to meet the demand and maintain the supply. For example, that year Fortuner sales advanced by 40% making Toyota catch up with their Asian competitors and becoming 5th best-selling car in the U.S. As a result, that being said Toyota has a pretty high-quality demand because of all of their fresh reinvented vehicles. The high demand for Toyota is openly being caused by many factors such as the quality of the produce, additional features, affordable price, and low miles per gallon in comparison to other brands. Nevertheless, it fits standards of numerous target markets among which are families, businesses, single persons, students and more.


Conclusively, Toyota has achieved it current market status by maintaining its overall product quality and through this, the company has managed to maintain a good market reputation so they company never have to compromise on quality in every situation because there is no room for mistakes and competition is very high. In meeting the overall demand, Toyota has put in place a very efficient system and managed a good customer-oriented market structure. Over the past years, drastic changes have been experienced in managing the Toyota products which have resulted in more capital share and serious growth.


Burrows, G., & Chenhall, R. H. (2012). Target costing: First and second comings. Accounting History Review, 22(2), 127-142.

Jaakson, K., Reino, A., & Motsmees, P. (2012). Is there a coherence between organizational culture and changes in corporate social responsibility in an economic downturn?. Baltic Journal of Management, 7(2), 202-216.

Miyazaki, Y. (2017). Excessive competition and the formation of keiretsu. In Industry and Bus in Japan (pp. 53-73). Routledge.

Robinson, A. (2017). Modern approaches to manufacturing improvement: The Shingo system. Routledge.

Schmidt, W., & Simchi-Levi, D. (2013). Nissan Motor Company Ltd.: Building Operational Resiliency. MIT Sloan Management Review.

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