International business

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Create a 11 page paper that discusses international business: toyota motor company. The paper focuses upon globalization that is the inevitable reality which has changed the entire automotive industry. The industry dynamics are no longer the same as they were five or six decades ago. The concept of a purely local company no longer exists and more and more automotive companies are now trying to become truly multinational companies. Globalization has proved to be a blessing for various producers but for some, it has created various problems. Consider the example of the US automotive market. In 1955, the US automotive industry was dominated the “Big Three” companies, which were GM, Ford, and Chrysler. By the end of 1965, the Japanese companies entered the US market and started growing steadily. By the end of 1985, they had acquired 20 percent share of the US automotive market. After the ten years, this percentage rose up to 30 percent and according to the statistics of 2010, this percentage stands at well over 48 percent. One might say that the Japanese players are now dominating almost half of the US automotive market and a few decades back, no one would have imagined that Japanese companies would be able to penetrate the US market. A similar situation is present in Europe where the local car producers are facing serious problems not only from the Japanese manufacturers but also from the South Korean company Hyundai who has been penetrating in the European markets aggressively. (Osono, Shimizu & Takeuchi, pp.75-76, 2008). Gone are the days when consumers within a country or even all over the globe used to accept standardized products, styles, and designs. Over the years, the bargaining power of customers has increased significantly, and now they demand more information, styles, designs, and features. Automotive companies in the past had the option of keeping some markets backwards (Blanpain & Lansbury, pp. 114-115, 2008). This means that carmakers, at times, deliberately hold back car designs and models in certain markets to ensure that they could take complete advantage out of the previous models. However, the same is not applicable in the globalized markets of today. Consumers now have access to all the information about the activities, models, and product variations.

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