The Story of Toyota's Rise
Throughout the 20th century, Toyota rose from a small car company to one of the largest and most respected automobile companies in the world. But how did this Japanese company rise to such prominence? In this article, we'll explore the
history of Toyota's rise, including its humble beginnings as an auto repair shop and its relentless pursuit of quality and improvement that still drives it today.
Inventive Problem Solving
When faced with a problem, companies often try to solve it in traditional ways (i.e., adding more employees, raising prices) or through efficiency (i.e., developing less innovative products that cost less and require fewer workers). However, innovators who take on issues from a different angle tend to succeed. This method is called inventive problem solving—and it’s a strategy that enabled Toyota to avoid failure when disaster struck in 1935. At that time, Japan was experiencing an economic depression—which made it difficult for consumers to purchase new cars. To combat these circumstances, Toyota began producing affordable people’s cars at a faster rate than other automakers could produce luxury vehicles. By taking an unorthodox approach to its business model, Toyota was able to stay afloat during a trying time. Nowadays, inventive problem solving has become one of Toyota’s core strengths; as a result, it remains one of the most successful car manufacturers in history. In fact, in 2012 alone, Toyota sold 9.75 million vehicles worldwide—making it one of only three companies to reach that mark.
Expansion Through Collaboration
Although they’re known as one of Japan’s largest car companies, Toyota has always been something else, too: a company that collaborated with others. In fact, some people refer to them as the world’s best assemblers. In addition to various parts suppliers, they also relied on experts from other companies—even their competitors—to get them where they are today.
Leadership Through Innovation
The company came to prominence during World War II, when it started producing trucks for Japan’s Imperial Army. The company was committed to quality, and its quality efforts greatly contributed to Japan’s ability to win many battles. As a result, after World War II, Toyota became one of Japan’s top car manufacturers. In fact, it still is today! To achieve such great heights, however, a business must follow some kind of strategy or plan.
Transparency in Business Relationships
The business world has been rocked in recent years by a series of high-profile scandals resulting from a lack of transparency. From corruption to cover-ups, poor communication has cost many companies millions in brand value and significant legal penalties. The bottom line is that honesty is always best; you never know when you might need your customers’ trust more than you do right now. For a company to be successful over time, it must be built on sound ethical principles and sustained through transparency.
A Great Deal of Patience
When Sakichi Toyoda developed a machine that allowed for automated weaving, he originally planned to call it a straddle loom. However, when he took his invention to businessmen in Nagoya, they balked at how difficult it would be to pronounce. The name was also too similar to that of a competitor. In response, Toyoda decided on Toyota, which roughly translates as abundant rice. This eventually evolved into today’s iconic logo.https://propellerads.com/publishers/?ref_id=m8Lm
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