According to Porter (1996) Strategy is the creation of a unique and valuable position; a clear strategy statement can be used as a guiding light for making difficult choices (Collins and Rukstad, 2008: 2). For an organization to successfully achieve its objectives and establish appropriate strategies, it must develop a critical understanding of its competitive environment (Pitt and Koufopoulos, 2011: 163; Wilmot, 2002 cited in Selimi and Selimi, 2011: 5) by conducting PESTLE and SWOT analysis (Appendix 1). The following paragraphs would simultaneously analyze Toyota’s strategy in terms of Relevance, Practicality, Sustainability and meeting key expectations (Pitt and Koufopoulos, 2011: 172-173).
Research has shown that strategic thinking and planning have had a strong impact on the Toyota Motor Corporation (TMC) which has seen it establish a unique
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He states further that unique strategic position involves trade-offs, without which there would be no need for choice or need for strategy. This argument is premised on the impossibility to engage in the simultaneous pursuit of low cost and differentiation. Kim and Maubourgne (2007) argue that some organizations have the ability to outperform competitors on the different levels of cost, quality, speed, dependability and flexibility. Given the fact that Toyota follows the blue ocean strategy, it shows evidence of performing well in the five operations objectives as exemplified in the words of its former CEO/President Katsuaki Watanabe, ‘Our products must be the best in the world; we must be the first to offer them to customers; we must manufacture them at the lowest cost; and we must sell them through the best service networks. My focus is on how Toyota can achieve all those things at the same time’ (Stewart and Raman,