Toyota Qatar (Essay Sample)

Report on TQM
Name
Instructorcourse
Date
Introduction
In the modern day world, Middle East has become one of the regions where business has been booming. Many business enterprises have been set up which has resulted in infrastructure development and other economic and social development. One of countries enjoying this experience is Qatar. This is a monarchy state where no elections are held to elect the head of state or government. Instead, it is hereditary where the preceding Emir chooses who amongst his family members should succeed him. The economy of Qatar is mainly dependent on oil and natural gas that are mined in different parts of the country. These resources have made Qatar the wealthiest country in the world in terms of gross domestic product. This country has been voted severally as one of the best to do business. The government has set friendly requirements for investors as a way of promoting investors to come and invest in the country. Today, Qatar has a population of around two million people. However, out of the two million, local population represents about a quarter of that population. This is an illustration that this country is a haven for people of diverse culture and backgrounds. Some of the well known brands to have set up their business in Qatar is the Toyota Corporation from Japan.
A brief History of Toyota Corporation
Toyota is an automobile company from Japan that was founded in 1933 by Kiichiro Toyoda. According to Shimokawa (2010), the company rose from humble beginnings, and two years after it began its operations, the company availed to market its first twenty vehicles. He has observed that this was the beginning of good times of this infant company. In the subsequent years, the number of vehicles produced increased. Furthermore, the company diversified its operations to include trucks, cars and buses. He says that in 1937, Toyota company was incorporated a move which meant that it could receive a financial boost from the Japanese government. After several years of operations in Japan, the company’s management decided it was time to spread its operations in the world market. As a result, in the 1960s, the company established a new plant in the United States of America. A move to the United States made sure that the company was open to foreign direct investment. From this point on, the company has never looked back, which has resulted in the production of numerous car models than any other automobile company in the world today.
Toyota’s world market share
United States of America Market
Toyota’s products in the United States have been performing well since the corporation opened its operations. Casson (2011) is of the view that by 1993, there were eleven factories in the United States of America. He says that this was an indication that the market was responding well and that the demand for cars was increasing. As at 2004, he had observed that the market share of Toyota cars stood at 20.6%, which was a rise from 1999 when the market share stood at 15.3%. According to him, sales volume has continued to go up year in a year out a situation that has tightened the grip on the Unites States of America market share.
European Market
The opening of the United States plant provided an opportunity for the company to contemplate opening other branches in the world. According to Mababaya (2002) opening of new plants outside Japan was a calculated move aimed at increasing its market share in the world. He suggests that in Europe for instance the company has opened more than ten plants that are producing different models of its cars product. Some of these plants are located in both the eastern and western parts of Europe. Some of the country's housing these plants includes France, United Kingdom, Poland and Czech Republic. According to him, the Toyota market share in the European continent by 2010 was slightly above twenty five percent. This was a huge improvement from the year 2000 when the market share stood at 4.4 %.
Australian market
To increase its market share in Australia, Toyota has established the Altona Plant in the Southern part of Australia. However, unlike other plants in the world, the Altona plant has been set up to produce electric powered cars for this region and other neighboring countries. According to Wimmer (2012) Toyota’s share market in Australian market has been on the rise prior to the formation of the Altona plant. He says that the production of cars in this plant has helped the company dominate this market in great depth. He has observed that the market share of Toyota as of 2010 stood at 32.6%.
In the other markets, especially Africa and Asian markets, the country has a major foothold compared to other car makers in those regions. Czinkota (2009) points out that in the Sub-Saharan Africa for instance, Toyota has remained the market leader in terms of sales volume. He has observed that most of the vehicles sold in these regions are affordable to the majority of the middle class society and therefore, the high number of sales.
Toyota Qatar
In the contemporary Qatar, Toyota products are sold through Abdullah Abdulghani & Bros. Co. W.L.L which is the only authorized dealer. Therefore, any activities that Toyota has to conduct have to be done through Abdullah Abdulghani& Bros. Co. W.L.L. This company has been in existence since 1958. It was founded by three brothers who include, Abdullah Abdulghani Nasser, Abduljaleel Abdulghani Nasser and Abdulghani Abdulghani Nasser. The company’s cooperation with Toyota is stretched back to 1964 when the two companies signed a memorandum of understanding. This laid the foundation of Toyota’s presence in Qatar and in the Middle East at large.
Wright (2001) is of the view that in any business enterprises, the hardest task is to retain loyal customers rather than making new ones. It is because of this notion that many companies across the globe have been working hard to provide services that will make them retain and make new clients. New businesses are coming up and therefore, the owners of the old businesses cannot afford to sit back and watch as others catch up with them.
Toyota Qatar has witnesses an influx of new models from different parts of the world into its market. Some of the new models introduced by the competitors tend to be cheap compared to what they are selling. As a result, the company has been engaging in making special offers for selected models of cars. In this case, most of these vehicles are usually the ones that take a long time before they are sold. For instance, selling a Toyota Saloon may take a short time before customers comes for it. However, Land Cruiser may take a long time to sell. As a result, the company has been embarking on making special offers on these vehicles during certain periods of the year. This has ensured that customers can get their preferred Toyota car models at a competitive price. As a result, the company has continued to dominate the Qatari’s car market. The number of cars sold yearly has been going up all the years it has been in operations. According to Kaoru (2010), Toyota’s market share in the country and the region has increased rapidly since the company began offering cars at a discounted price.
Another initiative adopted by the Toyota Qatar has been to offer free after sale service to their customers at an agreed time frame. Shimokawa (2010) has observed that after sale service has made many companies have a wide customer base. He says that free after sale service is an indication that the company is committed to ensuring that the goods it sells to its clients are of good quality and serviceable. Toyota Qatar has a policy whereby customers are given free after sale services for a period of two years. Since Qatar is a country with good and well developed infrastructure, it has been taking long for customers to bring back their cars for service. However, just because the company has offered to provide the free after sale service to such customers, they remain committed and loyal to the company. As a result, when such people dispose off their models, they normally go back to Toyota Qatar to get a new vehicle rather than go to another dealer whom they are not sure of the quality of their cars. Offering free after sale service to their customers has gone a long way in cementing its position as a market leader in car sales in Qatar and Toyota products in the region as well.
Toyota Qatar has adopted a policy through which its customers can acquire their cars on credit. This initiative has been made possible through the collaboration of Toyota Qatar and different commercial banks operating in Qatar. Under this agreement, a customer identifies his or her preferred car model after which he or she secures financial assistance from the bank. Most of the customers are workers whose salaries are channeled through these banks. As a result, the bank pays Toyota Qatar the amount required for such a car while the bank is left deducting the amount from the client salary. This initiative has worked very well for all parties. As a result, the number of car owners in Qatar has continued to sour with Toyota Qatar accounting for the highest number of cars sold per year. This initiative has not only benefited the Toyota Qatar company, but also the financial institutions offering loans to their clients because of the interest they earn on such loans that they lend to their customers.
Furthermore, the company has been running various promotions and competitions where individual customers win fantastic prizes including a brand new car. The main aim of carrying out such competitions is to encourage many people to purchase their products; cars. While doing this the sales volumes go up because a customer is of the view that he or s...