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Yiying Gui

on 26 June 2014

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Transcript of TOYOTA

Toyota GT-86
Toyota Camry
About Toyota
Information System used in Toyota
Information System used in Toyota
Companies will have to adopt various information systems at different stages of the business. In the case of Toyota, it adopts different systems such as stores management system, job costing system, sales system, finance system, and the import system. This would ensure that the company will have their operations in place.
Nature of Industry
Toyota is a part of the automobile manufacturing industry whereby they transform raw material, in this case, steel, aluminum and plastic to products such as cars and car parts. Therefore, the nature of Toyota's industry is the manufacturing industry.
How does Toyota sustain competitive advantage in the automobile industry
Low-cost leadership
- Uses information system to achieve low operational cost and also the lowest price
- Example: Toyota's store management system allows a car to be issued two hours after acquisition while other companies takes approximately 1-2 weeks to issue a car, which increases inventory at warehouses and increase operational cost.
Toyota Hiace van
Products and Services
Vehicle Finance
Equipment Leasing
Compact cars
Passenger cars
Recreational Vehicle (RV)
Sport Utilities Vehicle (SUV)
Sports Car
NX Compact Crossover
Toyota's target user varies according to the particular model. Toyota produces a wide range of product, each catering to people with different needs, for instance, speed, capacity, off-road capabilities and exterior appearance.
Target Users
Toyota headquarters is located in Tokyo, Japan. Based on the figure above, we can see that there is plenty of manufacturing companies spread across the globe. Thus information systems are needed to constantly monitor and manage the business operation.
Information System used in Toyota
Information System used in Toyota
The job costing system
– This is the process of tracking the expenses incurred on a job against the revenue produced by the job. The costing system also plays a very important role in establishing the cost for each job and the price that they would charge the customers. This is managed by the Finance and Accounting department as reports on revenue and costs have to be produced.
Information System used in Toyota
Sales system
– This will ensure that all the transactions are recorded. Vehicle selling price are entered based on the cost provided by the other systems and the management decision on the mark up on the various vehicles.
Information System used in Toyota
Finance system
– This is the core of the information system. It coordinates work with all the other functions, for instance, HR, sales & marketing department. The system also will produce a number of management reports at the end of each of the month.
- Establishing Strong linkages to customers and suppliers increase switching costs and loyalty
- E.g. Toyota uses its information systems to facilitate direct access from suppliers to production schedules
- Increase customer's convenience in using existing products and services.
- E.g. Toyota uses information systems to customize and personalize vehicles to fit the specification of individual customers. For instance, customization of exterior and interior paint and customization of body kit.
Product Differentiation
- Uses information systems to allow specific market focus and serve narrow target market better than competitor.
- Analyzes customer habit/preference
- Advertising pitches to smaller target market.
The implementation of information system has helped Toyota to gain a competitive advantage in the industry in terms of cost and efficiency.
Toyota FT-1
Nx compact crossover
Stores Management System
- Due to Toyota's flexible and secure store management system, Toyota dealers can issue a vehicle within two hours after a requisition was raised for such release. This enables dealers to deliver personalized offers and services that are targeted at each individual. Limited processing is also managed by the stores management system.
Import system
- This is the system which handles all the import related activities of the company. The import price, shipping related costs and duties will be entered into the system and the system will provide the total cost of importing each vehicle and allows Toyota to decide on the selling price of these vehicles.

Focusing on Market Niche
Strengthening customer and supplier intimacy
Product Development
- Seeking of growth in current market with new products
- E.g. Toyota is constantly involved in R&D of safety development, and is currently focusing on developing technologies that protect older drivers and pedestrians
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