Automobile industry in Japan (Toyota) Essay Example | Topics and Well Written Essays - 2500 words

Automobile industry in Japan (Toyota) - Essay Example It has also been noticed in by Global Vice Chair Industry, Ernst and Young, Steve Almassy, "The world has changed in the last year and so have traditional business models. Some have disappeared outright but others will have to adapt to the new rules of the game. Thriving in this challenging business climate requires flexibility, creativity and imagination". The increasingly globalising world has a clear impact on the overall performance of the company. It is also essential to note even as a conclusion, that Toyota has a major competitive advantage over the other companies and this is mainly the JIT Strategy. Just – In – Time (JIT) is a recent strategy of inventory management to reduce the carrying costs and the in progress inventory, and also increase the return on investments. This method has been developed to help companies use its investments carefully and appropriately. This strategy adopted by the company has led the company to be strong and not only face the inten se competition that is presented with the globalisation but also to be able to face any changes that are present in the market including the current recessionary period. Toyota has a high growth possibility and is one of the only companies that will be able to stabilise back to the neutral position or even exceed their previous performance as well, ‘The Toyota Way’ (Liker, 2004). It is safe to say that Toyota has over the years built a company and brand which has not only been successful, but has also been built strong to be able to face all competition globally and also to be able to face any changes in the environment like recession or inflation. The company on its own strategies has in simple ways covered the success for itself for several years to come.