Ansoff Matrix of Toyota 

Toyota Motor Corporation is an automobile-manufacturing Japanese multinational company. Kiichiro Toyoda founded the multinational company in 1937. Today, we’ll discuss the Ansoff matrix of Toyota and; the four growth matrix strategies as Ansoff matrix company example; market penetration, product development, market development, and diversification.

Elements of Market Penetration Strategy of Toyota

• Innovative technology to provide comfortable, safe, and unique driving experience
• Strong commitment to the environmental sustainability by launching hybrid and electric vehicles
• Spreading product awareness by running ads on multiple media channels
• Connecting and engaging with customers on social media to increase brand loyalty
• Sponsoring sporting events to amplify brand exposure
• Emotionally connecting with the customers

Top Selling Markets and Geographical Regions of Toyota

• Africa – 226000
• Ocenia – 265000
• South and central America – 509000
• Middle East – 559000
• Europe – 1030000
• Asia – 1751000
• Japan – 2069000
• North America – 2407000

Latest and Best Selling Collection of Toyota

• RAV4 Toyota
• AyGo X Toyota
• Toyota C-HR
• Corolla Range Toyota
• Yaris Range Toyota
• SUV Toyota
• BZ4X

Ansoff matrix of Toyota would focus on four growth matrix strategy as Ansoff matrix company example market penetration, product development, market development, and diversification. Here’s Toyota Ansoff matrix company example of growth matrix strategy as follows;

Ansoff Matrix of Toyota 

Let’s discuss the four growth matrix strategies in the Ansoff matrix of Toyota as an Ansoff matrix company example; they’re as follows;

Market Penetration of Toyota

The market penetration strategy in the Toyota Ansoff matrix company example as growth matrix strategy would focus on amplifying the sale of the automobile brand. They plan to do so without shifting their attention from the company’s product market strategy. However, the automobile brand penetrates the market in three ways; attracting new customers, improving products or services, and targeting the competitors’ customers.

I-Vast Portfolio

Toyota offers roundabout over 70 different types of automobile models under various brand names like; crossovers, hybrids, trucks, vans, coupes, sedans, SUVs, and many others. Toyota Corolla model is the top-selling brand of the company. According to an estimate, the company sold approximately 1312000 Corolla vehicles in 2021.

II-Cost Leadership

Cost leadership offers the automobile brand Toyota a great competitive edge over other competitive brands and it facilitates and supports the growth strategy of the company. The lower-selling market pricing strategy helps the brand to amplify its sales, revenue, and profitability.

Product Development of Toyota

The product development strategy in the Toyota Ansoff matrix company example as product growth matrix strategy happens when the company introduces the model in the market. Product development focuses on developing a new product rather than making small changes to the existing product. However, the automobile brand does so by employing the latest technology, launching innovative products, countering competitive offers, and using high production capacity.

I-Innovation

Toyota has established such workplace culture at the corporate level that promotes, facilitates, and encourages innovation and creativity. It allows the company to launch innovative designs, styles, and features in its automobiles and vehicles. However, some of the main innovative projects that the automobile brand has launched are as follows;

• The Winglet
• Toyota i-Road
• Wireless EV Charging
• Integrated Safety Technology
• Kirobo in Space
• Partner Robot Program

II-Hybrid Vehicle, Toyota Prius

Toyota Prius is a hybrid vehicle model that the company launched its first model in 2001. The company has sold over 7 million Prius hybrid vehicles since then. However, the growth strategy and tech innovation of the automobile brand Toyota attract the attention of customers. The product innovation and differentiation helped the company to gain a competitive edge in the market.

Market Development of Toyota

The market development strategy in the Toyota Ansoff matrix company example as growth matrix strategy would focus on attracting new customers for the existing products. It requires the automobile brand to explore and find new market segments and enter new geographical regions.

I-Global Market

Toyota is already operating its automobile business in the global market. The company has grown significantly by entering various markets and targeting various segments of customers. The intensive growth strategic approach helped the company to become the world’s top automobile brand; and sold its vehicles in various segments of the customer market.

Diversification of Toyota

The diversification strategy in the Toyota Ansoff matrix company example as growth matrix strategy would focus on expanding its product portfolio and entering new markets. They could employ forward, backward, or horizontal integration. Sometimes, diversification could be highly risky if the company diversifies into an unrelated product or market; the risk factor is lower in the related product or market diversification.

I-Vertical Integration

Toyota has diversified its automobile business through vertical integration. The company is already manufacturing electric vehicles; vertical integration has allowed the company to build solar charging stations for the charging of electric vehicles.

II-PDAD

Toyota has recently launched the PDAD (parts distribution and accessory development) division by integrating after-market/service parts and inbound manufacturing parts units. It has allowed the company to amplify its operational efficiency and savings from suppliers.

Conclusion: Toyota Ansoff Matrix Growth Matrix Strategy 

After an in-depth study of the Ansoff matrix of Toyota; we have realized that Toyota is the world’s leading automobile manufacturing brand. If you are learning about the Toyota Ansoff matrix company example or growth matrix strategy; then you should keep in mind the abovementioned four growth matrix strategies; market penetration, product development, market development, and diversification.