Toyota’s industry include manufacture of automobiles, it is one of the examples of companies that employ the RBV technique to maintain its competitive advantages over others.It employs resources and capabilities and shapes its competency that far better than other competitors. Toyota brand has build confidence in consumers’ perspective and become more convincing. This help to gain the value creation among customers. In these ways, the company can charge higher prices and gain more income.
Toyota prepared a lean production system that is very hard to imitate and understand. It will achieve better effectiveness and a better product with better functions to perform its activities in high quality, which leads to differentiation and lower costs. This structure consists of a whole range of manufacturing techniques, for example just-in-time inventory systems, self-managing teams, and reduced setup times for complex equipment. Toyota utilizes high-tech performance features and upscale quality to compete in luxury car market with a supply chain management and low cost assembly capabilities by producing Lexus models. The pricing advantage compared to Mercedes and BMW models has attracted lots of consumers. Other rivals can hardly imitate them in this low manufacturing costs and differentiated products (Thompson, Strickland and Gamble, 2010, p.156).
Toyota also keeps on learning and upgrading their resources and capabilities to stay ahead of imitators (Hill and Jones, 2007, p.100). Toyota’s hybrid cars have successfully created new markets add value for the consumers. On the other hand, rivals are putting their best effort to catch up Toyota. Toyota’s much admired manufacturing system manages inboud logistics in the form of excellent material and inventory control systems. This ensures that inventory levels are sufficient to meet customer demand by having parts delivered prior to their assembly. If we look at other primary activities in the value chain, such as operations, we find automated and efficient plants with embedded quality control systems.
This is backed by marketing and sales through advertising and dealership networks, and service through the use of guarantees and warranties. Toyota’s value chain activities, its linkages across them, and its linkages with the value chain of its suppliers are configured in such a way that they provide the Japanese competitor with a core competence or distinctive capability. It is this capability which provides it with competitive advantage and which its competitors have found difficult to match. Toyota is also able to appropriate the added value that is derived from these activities. For instance, Toyota makes more profit than the largest automobile companies in the USA combined.Toyota’s core competencies derive from its ability to blend core competencies across the whole organization. if everything tangible that Toyota owns were to be destroyed in some bizarre accident, if a fire were to burn down each and every factory, office building and bottling plant right down to a total loss of every desk, chair, and pencil, the intangible resources that Coke owns would be those things that the company still possesses; namely, brand value, the secret recipe, its distribution channels, and business relationships that it has developed over the years.
These would allow Toyota to go to a bank and borrow billions of uncollateralized dollars to rebuild its infrastructure. Their resources are physical, technological. Financial, human and intellectual capital, their buildings and reputationThey invested a lot of money in physical, technological and human resources, with many asets all over the globe.
Using flexible production methods and standardized production, Toyota have invested heavily to produce cheap and reliable cars in a number of markets Toyota has physical assets all over the world with facilities in Japan, North America, Europe, Asia, central and South America and Africa. Their employees have very special skills in lean production supply chain and inventory management.In technological resources, Toyota has advanced inventory systems as well as automated plants within built quality control systems. Very complex technological software runs by workers By using resources in an effective way, Toyota has created competencies in lean manufacturing, efficient supply chain management and inventory management. This has enabled flexible, reliable production on a global scale, while being able to react quickly to fast changing customer needs.
Competencies are built and sustains through creation and implementation of intellectual capital. Toyota’s competencies are supply chain management, inventory management that is outsources, and lean production and their production system. With economic factors being unstable and increased in competition and diversity, knowledge and specialized organizational knowledge is the catalyze in driving and formulating capabilities.Toyota use technology, physical machinery, workers and intellectual capital to develop and build quality cars quickly and efficiently
