Business Essays – International Market Sales

Download .pdf, .docx, .epub, .txt
Did you like this example?

International Market Sales

1. Introduction

Toyota is the automotive company with the biggest market share of the industry and over the course of the last decade has almost doubled it Sales. Growth in Japan has only accounted for 27% of this achievement, highlighting the importance internationalisation has had for Toyota’s ambition to become the world’s number one automobile producer.

Don’t waste time! Our writers will create an original "Business Essays – International Market Sales" essay for you whith a 15% discount.

Create order

Figure 1: Global Market Share (Source: Datamonitor 2008) The Automobiles Industry is one of the few truly global industries as demand is spread around the world, and the big car companies all compete in all markets. Currently NAM still accounts for the biggest market, closely followed by Europe. However Asia-Pacific is the fastest growing market and is likely that over the next couple of years the market shares per regions will converge. Figure 2: Market share by region (Source: Datamonitor 2008) This report will look at understanding the key drivers for internationalisation as well as local differentiation from the perspective of manufacturing and supply chain. In 2007, exactly 50% (all figures are based on Toyota Databook 2008 figures replicated in Appendix 1: Production and Sales by region) of production took place outside Japan, compared to 32% in 1998. This was achieved during a period of intense growth and translates into an expansion of 293% in overseas production capacities, compared to an increase of 134% in production capacity in Japan. Figure 3: Share of Overseas Production as % of total Production The fact that Toyota has internationalised its capacities should not cloud the fact that there is still significant production in Japan for external markets – 62% of all cars produced in Japan 2007 were exported. The key export market is NAM, which like most regions shows a production deficit compared to its Sales. The only region where sales equal production is Asia (excluding Japan), all other regions are net importers. Figure 4: Consolidated Vehicle Sales and Production (Source: Toyota Annual Report 2008) To quantify the level of internationalisation a company has achieved, the calculation of a “Transnationality index” is used as a measure. It is computed as an average of three ratios.

  • Foreign assets as proportion of total assets
  • Foreign Sales as proportion of total sales
  • Foreign Employees as proportion of total employees:

Figure 5 shows the transnationality index for Toyota and its two biggest rivals. The data shows that Toyota is now the most internationalised of these three, and has overtaken Ford who ten years ago was ahead with regards to transnationalization. The comparison also shows the discrepancy between foreign assets, which it leads, and foreign employees, where it scores significantly lower than its competitors. This could indicate a less labour intensive and more effective production as well as a more centralized organization structure that keeps many of the non-asset leveraging staff functions in Japan.

Do you want to see the Full Version?

View full version

Having doubts about how to write your paper correctly?

Our editors will help you fix any mistakes and get an A+!

Get started
Leave your email and we will send a sample to you.
Thank you!

We will send an essay sample to you in 2 Hours. If you need help faster you can always use our custom writing service.

Get help with my paper
Sorry, but copying text is forbidden on this website. You can leave an email and we will send it to you.