Strategic Management for Industrial attractiveness- myassignmenthelp

Question: Evaluation of How the Theoretical Concepts Influences Strategic Management; The Case of Toyota Motor Corporation Answer: Industrial Attractiveness Industrial attractiveness can be said to be the ease and the weight of the risks that a company evaluates in venturing in to a business venture. The company will be in a position to base their attractiveness on the levels of competition among the companies that manufacture the same goods, their abilities to outdo them in the new venture the growing demands of the goods and services of the company. (Pulles et al., 2016, p.129). For the success of the company also, the management should be in a position to carry out need assessment and evaluation procedures so as they can provide the goods and services that the customers require. The services should as well be delivered with efficiency and they should be profitable. The Toyota vehicle company management has been held accountable for upholding their industrial attraction virtually in all parts of the world. The issue of industrial management has contributed to a great extent to the strategic management of the company. The company has been presented in the news for the last two years severally providing top quality vehicle designs. For these products, the company has been able to attract very many customers and compete very well in the market. The Toyota company has also obtained the competitive advantage over other companies. This has been as a result of the manufacturing, assembling and also servicing of their products. Innovativeness has taken a course in its market position. According to Porter (2013), Industrial attractiveness can take five (5) forces. These forces can also be used to show how the Toyota Motor Corporation industrial attractiveness, in terms of internal and external forces influence the strategic management practices. However, Toyota Motor Corporation remains at the top in the automotive industries. Competitive rivalry is among the strong forces for Toyota Motors Corporation. The factor shows how other firms producing the same type of product can affect the Toyota company. Some rivals in motor industries can be very aggressive in the market in terms of which company produces the best motors, which company has the best innovations and the company which is best in marketing (Chen, Liu Wu, 2016, p.2145). However, the researches have shown that Toyota competes with very few firms producing motors such as Volkswagen, general motors, Ford, Nissan and Hyundai. Threat of substitute is another factor, the Toyota company can be threatened by the customers needs which may result to desire of a substitute may be because of the economic factors or marketing and manufacturing factors of quality and value. Buyer power regards the ability of the consumers or the customers to purchase the product. The industrial attractiveness can diminish if the Toyota company produces Other forces like barriers of entry and supplier power are internal forces that affect the attractiveness of the industry on the basis of the industry to supply its product and extend its market. Toyota motor corporation has to evaluate these forces and make strategic management based on them to achieve industrial attractiveness. Competitive advantage Competitive advantage is the attribute attached to an organization or the company that makes it to outdo other companies which it is competing with. Toyota motor company is among the companies that has shown efficiency in competitive market (Krishnaswamy, 2017, p.106). In the year 2015, the company was ranked the first in the sales of motor vehicles with more than $16 Billion, $18.7 Billion in 2016 which is more than double for the competitors like Volkswagen, ford, Nissan and General motors. The competitive advantage of the Toyota can be attributed to both the internal and external factors. For the external factors, the company is situated in Japan. Japan is the second country after USA in terms of Gross Domestic Production (GDP) (Ikegami Wang, 2016, p.767). The country is the third in terms of Automotive motor industries in the world. The external factors in this country gives potential for the development of this corporation. The country also has been able to use the vehicles which are produced in the country. The country does not import the motor products from other countries. For this reason, the Toyota company gets more avenues starting from the country and thus getting to a position to expand the market to the outside world and compete all other motor companies in other countries like Hyundai in South Korea and Ford in United States of America. The internal factors boosting the company and placing high competitive position are for example, meeting the aspect of time through innovations, affordability of the motor products such as vehicles of all classes, boat engines and other IT and biotechnology motor products. The diversification of its products offers it a very strong market for all of these products. For achieving this status in the competitive market, the company management has influenced strategic management practices in the company. For the Toyota corporation the strategic management, the customers, suppliers, the products and the competitors as well as marketing, technology and business strategy aspects must be considered in in the Corporation management plan. For instance, the customers plan can be aimed at focusing on provision of more valuable motor products. The management must always seek in their strategic plans on the changing market condition, the response of their customers and seeing if the customers are replacing the products with the others (Davis, 2017, p.05). The products will influence the strategic management too. The products from the Toyota Corporation can become obsolete if the management practices can fail to look on issues like the innovations and technological development. The products from the Toyota corporation are of moderate prices, but the competitors can offer lower prices and advertise their similar goods with lower price. The Toyota company can only lower the product price also so as the consumer or the customer does not replace the product with another brand. Resource based view The Resource based View is a tool in Economics that can be applied to determine the available resources, the available capabilities and competencies in a business firm. The resources, capabilities and competencies aims at achieving competitive advantage and the Industrial attractiveness (Wu Chiu, 2015, p.25). In this theory, there are some points in analysis of RBV of an organization such as Toyota Corporation. One of them is based on identifying the key resources in a firm. For instance, the Toyota Corporation has been in a position to acquire all the needed manufacturing material for their industries. The corporation is also based in a very good economic country which can be able to support the motor industries in Japan. The company also have enough workforce skilled with the newest technology and with the legendary knowledge of the Toyota Corporation. The man power, the technological machinery and a suitable economy in Japan provides the company with good capabilities and compete ncies for enabling it being on top in the market (De Stefano, Montes-Sancho Busch, 2016). Another factor in understanding and examining the RBV is the issue of VRIN criteria based on Value, Rare, Imperfectly Imitable and Non-substitutable. Toyota Corporation products are valuable, the company manufactures high value motor products like cars. Other competitors neither have such brands of products nor easily implement same manufactural products as Toyota. The products from the corporation can also not be substituted easily by other companies because its peculiar. Finally, all the resources that pass these evaluations are maintained so as to enlarge the companys boarders of marketing (Lin Wu, 2014, p.407). Recommendations that would enhance strategic management in Toyota Motors Corporation For the strategic Management in Toyota Motors Corporation, I would recommend setting the goals and objectives for the corporation. Setting a goal helps in clarifying of the vision the company aims to meet. This is in terms of short, medium and long term goals. For instance, the corporation can seek to set a goal in producing a new model of vehicles, on policy amendments to fit the prevailing customer demands or on the sales and profit estimate for the year. Regular assessment of the customers need can also enhance the strategic management. The reason for this is to make sure that the customer is provided with the desirable products and that he/she can acquire. It can be in terms of price or any other consumer related elements. Assessing the customers need will avoid market shift for the company as the customer will substitute the product for another. Another recommendation is that, the Toyota Motor Corporation should study the market and appraise its industrial attractiveness through offering high quality and valuable motor products. This will assist the corporation in meeting a competitive advantage among its competitors. 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